Financial Accounting and Cost Management
Classify each of the following actions as either being associated with the financial accounting information system (FS) or the
cost management information system (CMS):
a. Determining the total compens
1. Product Costs
Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,000 units will be produced, with the
following total costs:
If required, round your answers to the nearest cent.
1. Calculate the costs transferred out of each department.
Applied Overhead and Unit Overhead Cost: Plantwide Rates
Seco, Inc., produces two types of clothes dryers: deluxe and regular. Seco uses a plantwide
rate based on direct labor hours to assign its overhead costs. The company has
Calculating and Using a Single Charging Rate
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year
1. Calculate a single
$ per maintenance h
1. _ is devoted to providing information for external users.
a. Financial accounting
b. Management accounting
c. Internal accounting
d. Cost accounting
2. Financial accounting information is used for
a. regulatory measures.
b. stewardship evaluation.
1. The following condition which demands maximum efficiency and can be achieved only if
everything operates perfectly is called:
a. Personnel standards
b. Budget standards
c. Currently attainable standards
d. Ideal standards
2. Variances indicate
1. Support department cost to the producing departments is(are) called:
a. direct materials
b. direct labor
c. activity driver
d. common cost
2. Support departments
a. work directly on the products of the firm.
b. are responsible for manufacturing the pro
Mixed Costs and Cost Formula
Callie's Gym is a complete fitness center. Owner Callie Ducain employs various fitness
trainers who are expected to staff the front desk and to teach fitness classes. While on the
front desk, trainers
The accounting records for Portland Products report the following manufacturing costs for the past year:
Production was 150,000 units. Fixed manufacturing overhead was $270,000.
Overhead = $206,469 + ($45.83 Machine-hours)
Correlation coefficient .962
Estimate overhead if the company expects the plant to operate at a monthly average of 9,000 machine-hours next year.
Overhead costs =
8. Assume that Whee, Cheatham, and Howe is an auditing firm that has found that its summer interns are subject to a
90 percent learning curve for one of its important tasks, proofreading financial statements. For one of its interns, Kim
Down, the firm has
9. Adriana Corporation manufactures football equipment. Multiple regression results from the data of Adriana
Corporation are as follows:
Overhead = $124,570 + ($31.93 Labor-hours) + ($41.10 Machine-hours)
For the First Quarter of Next Year
FINAL EXAM STUDY SHEET
1.The cost to be predicted is referred to as the
a. independent variable
b. dependent variable
c. cost driver
2The independent variable
a. is also referred to as the cost driver.
b. may also be called the