DEVRY ACCT 346 Week 4 Midterm 1
DEVRY ACCT 346 Week 4 Midterm 1 Check this A+ tutorial guideline at http://www.assignmentcloud.com/acct-346/acct-346-week-4-midterm-1
DEVRY ACCT 346 Week 4 Midterm 1
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<strong>DEVRY</strong> <strong>ACCT</strong> <strong>346</strong> <strong>Week</strong> 4 <strong>Midterm</strong> 1<br />
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<strong>346</strong>/acct-<strong>346</strong>-week-4-midterm-1<br />
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http://www.assignmentcloud.com<br />
1. Question : (TCO 1) Managerial accounting stresses accounting concepts and<br />
procedures that are relevant to preparing reports for<br />
2. Question : TCO 1) Which of the following statements regarding fixed costs is true?<br />
3. Question : TCO 1) You own a car and are trying to decide whether or not to trade it<br />
in and buy a new car. Which of the following costs is an opportunity cost in this<br />
situation?<br />
4. Question :(TCO 1) Shula’s 347 Grill has budgeted the following costs for a month in<br />
which 1,600 steak dinners will be produced and sold: materials, $4,080; hourly labor<br />
(variable), $5,200; rent (fixed), $1,700; depreciation, $800; and other fixed costs,<br />
$600. Each steak dinner sells for $14.00 each. How much is the budgeted variable<br />
cost per unit?<br />
5. Question : (TCO 1) Which of the following is an example of a manufacturing<br />
overhead cost?<br />
6. Question : (TCO 1) Which of the following is a period cost?<br />
7. Question : (TCO 1) If the balance in the Finished Goods Inventory account<br />
increased by $30,000 during the period and the cost of goods manufactured was<br />
$220,000, how much is cost of goods sold?
8. Question : (TCO 2) BCS Company applies manufacturing overhead based on direct<br />
labor cost. Information concerning manufacturing overhead and labor for August<br />
follows:<br />
Estimated<br />
Actual<br />
9.Question : (TCO 2) During 2011, Madison Company applied overhead using a joborder<br />
costing system at a rate of $12 per direct labor hours. Estimated direct labor<br />
hours for the year were 150,000, and estimated overhead for the year was<br />
$1,800,000. Actual direct labor hours for 2011 were 140,000 and actual overhead<br />
was $1,670,000.<br />
What is the amount of under or over applied overhead for the year?<br />
10. Question : (TCO 3) Companies in which of the following industries would not be<br />
likely to use process costing?<br />
11. Question : (TCO 3) The Blending Department began the period with 45,000 units.<br />
During the period the department received another 30,000 units from the prior<br />
department and completed 60,000 units during the period. The remaining units<br />
were 75% complete. How much are equivalent units in The Blending Department’s<br />
work in process inventory at the end of the period?<br />
12. Question : (TCO 3) During March, the varnishing department incurred costs of<br />
$90,250 for direct labor. The beginning inventory was 3,500 units and 10,000 units<br />
were transferred to the varnishing department from the sanding department during<br />
June. The direct labor cost in the beginning inventory was $27,270. The ending<br />
inventory consisted of 2,000 units, which were 25% complete with respect to direct<br />
labor. What is the cost per equivalent unit for direct labor?<br />
13. Question : (TCO 4) Clearance Depot has total monthly costs of $8,000 when 2,500<br />
units are produced and $12,400 when 5,000 units are produced. What is the<br />
estimated total monthly fixed cost?<br />
1. Question : (TCO 4) The margin of safety is the difference between<br />
2. Question : (TCO 4) Allen Company sells homework machines for $100 each.<br />
Variable costs per unit are $75 and total fixed costs are $62,000. Allen is considering<br />
the purchase of new equipment that would increase fixed costs to $84,000, but<br />
decrease the variable costs per unit to $60. At that level Allen Company expects to<br />
sell 3,000 units next year. What is Allen’s break-even point in units if it purchases the<br />
new equipment?
3.Question : (TCO 4) Paula Corporation sells a single product at a price of $275 per<br />
unit. Variable cost per unit is $135 and fixed costs total $356,860. If sales are<br />
expected to be $825,000, what is Paula’s margin of safety?<br />
4. Question : (TCO 5) In variable costing, when does fixed manufacturing overhead<br />
become an expense?<br />
5. Question : (TCO 5) Variable costing income is a function of:<br />
6. Question : (TCO 5) Peak Manufacturing produces snow blowers. The selling price<br />
per snow blower is $100. Costs involved in production are:<br />
Direct Material per unit<br />
$20<br />
Direct Labor per unit<br />
12<br />
Variable manufacturing overhead per unit<br />
10<br />
Fixed manufacturing overhead per year<br />
$148,500<br />
In addition, the company has fixed selling and administrative costs of $150,000 per<br />
year. During the year, Peak produces 45,000 snow blowers and sells 30,000 snow<br />
blowers. How much is cost of goods sold using full costing?<br />
7.Question : (TCO 6) Costs may be allocated to<br />
8. Question : (TCO 5) An allocation base<br />
9. Question : (TCO 6) The building maintenance department for Jones Manufacturing<br />
Company budgets annual costs of $4,200,000 based on the expected operating level<br />
for the coming year. The costs are allocated to two production departments. The<br />
following data relate to the potential allocation bases:<br />
Production Dept. 1<br />
Production Dept. 2<br />
Square footage<br />
15,000<br />
45,000<br />
Direct labor hours<br />
25,000<br />
50,000<br />
If Jones assigns costs to departments based on square footage, how much total costs<br />
will be allocated to Production Department 1<br />
10. Question : (TCO 7) A company is trying to decide whether to sell partially<br />
completed goods in their current state or incur additional costs to finish the goods
and sell them as complete units. Which of the following is not relevant to the<br />
decision?<br />
11. Question : (TCO 7) BigByte Company has 12 obsolete computers that are carried<br />
in inventory at a cost of $13,200. If these computers are upgraded at a cost of $7,500,<br />
they could be sold for $15,300. Alternatively, the computers could be sold "as is" for<br />
$9,000. What is the net advantage or disadvantage of reworking the computers?<br />
12. Question : (TCO 7) Olde Store has 12,000 cans of crab meat just a week past the<br />
expiration date. Each can cost $0.31. The cans could be sold as is for $0.20 each, or<br />
relabeled and sold as gourmet cat food. The cost of relabeling the cans would be<br />
$0.04 per can and the cans would then sell for $0.29 per can. What should be done<br />
with the cans and why?<br />
1. Question : (TCO 3) Describe a process costing system, including the types of<br />
companies that commonly use this system. How can process costing information be<br />
used in incremental analysis?<br />
2. Question : (TCO 7) Each year, ACE Engines surveys 7,600 former and prospective<br />
customers regarding satisfaction and brand awareness. For the current year, the<br />
company is considering outsourcing the survey to RBG Associates, who have offered<br />
to conduct the survey and summarize results for $50,000. Robert Ace, the president<br />
of ACE Engines, believes that RBG will do a higher-quality job than his company has<br />
been doing, but is unwilling to spend more than $12,000 above current costs. The<br />
head of bookkeeping for ACE has prepared the following summary of costs related to<br />
the survey in the prior year.<br />
Prepare an incremental analysis in good form to determine the impact on profit of<br />
going outside versus conducting the survey as in the past. Will ACE accept the RBG<br />
offer? Why or why not?<br />
3. Question : (TCO 4) The following monthly data are available for RedEx, which<br />
produces only one product that it sells for $84 each. Its unit variable costs are $28<br />
and its total fixed expenses are $64,960. Sales during April totaled 1,600 units.