ACCT 346 Week 4 Midterm 1 / acct346dotcom

ACCT 346 Week 4 Midterm 1 (Devry)Click Here to Buy the Tutorialhttp://www.acct346.com/product-24-ACCT-346-Week-4-Midterm-1For more course tutorials visitwwwww.acct346..acct346.cocom1. Question :(TCO 1) Managerial accounting stresses accounting concepts andprocedures that are relevant to preparing reports for2. Question :TCO 1) Which of the following statements regarding fixed costs istrue?3. Question :(TCO 1) You own a car and are trying to decide whether or not totrade it in and buy a new car. Which of the following costs is anopportunity cost in this situation?4. Question :(TCO 1) Shula’s 347 Grill has budgeted the following costs for amonth in which 1,600 steak dinners will be produced and sold:materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,700;depreciation, $800; and other fixed costs, $600. Each steak dinnersells for $14.00 each. How much is the budgeted variable cost per unit?5. Question :

(TCO 1) Which of the following is an example of a manufacturingoverhead cost?6. Question :(TCO 1) Which of the following is a period cost?7. Question :(TCO 1) If the balance in the Finished Goods Inventory accountincreased by $30,000 during the period and the cost of goodsmanufactured was $220,000, how much is cost of goods sold?8. Question :(TCO 2) BCS Company applies manufacturing overhead based ondirect labor cost. Information concerning manufacturing overhead andlabor for August follows:EstimatedActual9.Question :(TCO 2) During 2011, Madison Company applied overhead using ajob-order costing system at a rate of $12 per direct labor hours.Estimated direct labor hours for the year were 150,000, and estimatedoverhead for the year was $1,800,000. Actual direct labor hours for2011 were 140,000 and actual overhead was $1,670,000.What is the amount of under or over applied overhead for the year?10. Question :(TCO 3) Companies in which of the following industries would not belikely to use process costing?11. Question :

(TCO 3) The Blending Department began the period with 45,000units. During the period the department received another 30,000 unitsfrom the prior department and completed 60,000 units during theperiod. The remaining units were 75% complete. How much areequivalent units in The Blending Department’s work in processinventory at the end of the period?12. Question :(TCO 3) During March, the varnishing department incurred costs of$90,250 for direct labor. The beginning inventory was 3,500 units and10,000 units were transferred to the varnishing department from thesanding department during June. The direct labor cost in thebeginning inventory was $27,270. The ending inventory consisted of2,000 units, which were 25% complete with respect to direct labor.What is the cost per equivalent unit for direct labor?13. Question :(TCO 4) Clearance Depot has total monthly costs of $8,000 when2,500 units are produced and $12,400 when 5,000 units are produced.What is the estimated total monthly fixed cost?1. Question :(TCO 4) The margin of safety is the difference between2. Question :(TCO 4) Allen Company sells homework machines for $100 each.Variable costs per unit are $75 and total fixed costs are $62,000.Allen is considering the purchase of new equipment that wouldincrease fixed costs to $84,000, but decrease the variable costs perunit to $60. At that level Allen Company expects to sell 3,000 unitsnext year. What is Allen’s break-even point in units if it purchases thenew equipment?3.Question :

(TCO 4) Paula Corporation sells a single product at a price of $275per unit. Variable cost per unit is $135 and fixed costs total $356,860.If sales are expected to be $825,000, what is Paula’s margin of safety?4. Question :(TCO 5) In variable costing, when does fixed manufacturing overheadbecome an expense?5. Question :(TCO 5) Variable costing income is a function of:6. Question :(TCO 5) Peak Manufacturing produces snow blowers. The sellingprice per snow blower is $100. Costs involved in production are:Direct Material per unit$20Direct Labor per unit12Variable manufacturing overhead per unit10Fixed manufacturing overhead per year$148,500In addition, the company has fixed selling and administrative costs of$150,000 per year. During the year, Peak produces 45,000 snowblowers and sells 30,000 snow blowers. How much is cost of goodssold using full costing?7.Question :(TCO 6) Costs may be allocated to

8. Question :(TCO 5) An allocation base9. Question :(TCO 6) The building maintenance department for JonesManufacturing Company budgets annual costs of $4,200,000 basedon the expected operating level for the coming year. The costs areallocated to two production departments. The following data relate tothe potential allocation bases:Production Dept. 1Production Dept. 2Square footage15,00045,000Direct labor hours25,00050,000If Jones assigns costs to departments based on square footage, howmuch total costs will be allocated to Production Department 1?10. Question :(TCO 7) A company is trying to decide whether to sell partiallycompleted goods in their current state or incur additional costs tofinish the goods and sell them as complete units. Which of thefollowing is not relevant to the decision?11. Question :

(TCO 7) BigByte Company has 12 obsolete computers that arecarried in inventory at a cost of $13,200. If these computers areupgraded at a cost of $7,500, they could be sold for $15,300.Alternatively, the computers could be sold "as is" for $9,000. What isthe net advantage or disadvantage of reworking the computers?12. Question :(TCO 7) Olde Store has 12,000 cans of crab meat just a week past theexpiration date. Each can cost $0.31. The cans could be sold as is for$0.20 each, or relabeled and sold as gourmet cat food. The cost ofrelabeling the cans would be $0.04 per can and the cans would thensell for $0.29 per can. What should be done with the cans and why?1. Question :(TCO 3) Describe a process costing system, including the types ofcompanies that commonly use this system. How can process costinginformation be used in incremental analysis?2. Question :(TCO 7) Each year, ACE Engines surveys 7,600 former andprospective customers regarding satisfaction and brand awareness.For the current year, the company is considering outsourcing thesurvey to RBG Associates, who have offered to conduct the surveyand summarize results for $50,000. Robert Ace, the president of ACEEngines, believes that RBG will do a higher-quality job than hiscompany has been doing, but is unwilling to spend more than $12,000above current costs. The head of bookkeeping for ACE has preparedthe following summary of costs related to the survey in the prior year.Prepare an incremental analysis in good form to determine the impacton profit of going outside versus conducting the survey as in the past.Will ACE accept the RBG offer? Why or why not?

3. Question :(TCO 4) The following monthly data are available for RedEx, whichproduces only one product that it sells for $84 each. Its unit variablecosts are $28 and its total fixed expenses are $64,960. Sales duringApril totaled 1,600 units.