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Page: 2 of 2 Question 1. Question : (TCO 1) Which of the following topics is the focus of managerial accounting? Student Answer: Financial statements and other financial reports Historical cost principles The needs of creditors The needs of the organization's internal parties Instructor Explanation: Managerial accounting focuses on the needs of internal users (managers) and on data relevant for decision making. Points Received: 7 of 7 Comments: Question 2. Question : (TCO 6) In an activity-based costing system, cost reduction is accomplished by identifying and eliminating: Non-Value-Adding Activities All Cost Drivers Student Answer: No No Yes Yes Yes No No No Instructor Explanation: Eliminating non-value-adding activities would reduce costs, which is one of the objectives of activity-based costing systems. Eliminating all cost drivers would eliminate all activity. Points Received: 7 of 7 Comments: Question 3. Question : (TCO 3) Kerner Manufacturing uses a process cost system to manufacture laptop computers. The following information summarizes operations relating to laptop computer model #KJK20 during the quarter ending March 31: Units Direct Labor This study resource was shared via CourseHero.com
Work-in-process inventory, January 1 300 $50,000 Started during the quarter 800 Completed during the quarter 600 Work-in-process inventory, March 31 100 Costs added during the quarter $720,000 Beginning work-in-process inventory was 50% complete for direct labor costs. Ending work-in-process inventory was 75% complete for direct labor costs. What is the equivalent amount of units of production using the weighted-average unit cost inventory valuation method? Student Answer: 600 650 725 675 Instructor Explanation: Equivalent units of production for the quarter are 675, computed as follows: Units completed + completed portion of WIP (600 + (100 × 75%)) = 675 Points Received: 7 of 7 Comments: Question 4. Question : (TCO 2) Sweet Co. uses budgeted overhead rates to apply overhead to individual jobs. They use a system based on direct labor hours. Last year, the company made the following estimates for this year. Direct labor costs $42,000,000 Factory overhead costs $7,500,000 Direct Labor Hours 150,000 Machine Hours 100,000 (a) What is the budgeted overhead rate for the company? (b) If Job #34567 had the following: Material costs were $400,000; Direct labor costs were $300,000; Direct labor hours were 15,000; and Machine hours were 20,000, Then what is the total cost of Job #34567? Student Answer: A. $50 per direct labor hour B. 1,450,000 Instructor Explanation:

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