ACC 349 Week 5 Final Exam (PHOENIX)
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<strong>ACC</strong> <strong>349</strong> <strong>Week</strong> 5 <strong>Final</strong> <strong>Exam</strong><br />
(<strong>PHOENIX</strong>)<br />
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<strong>ACC</strong> <strong>349</strong> <strong>Week</strong> 5 <strong>Final</strong> <strong>Exam</strong> (<strong>PHOENIX</strong>)<br />
1. Luca Company overapplied manufacturing overhead during 2006. Which one of the following is part of<br />
the year end entry to dispose of the overapplied amount assuming the amount is material?<br />
2. An activity that has a direct cause-effect relationship with the resources consumed is a(n)<br />
3. Max Company uses 10,000 units of Part A in producing its products. A supplier offers to make Part A<br />
for $7. Max Company has relevant costs of $8 a unit to manufacture Part A. If there is excess capacity,<br />
the opportunity cost of buying Part A from the supplier is<br />
4. The difference between a budget and a standard is that<br />
5. Which of the following is NOT typical of traditional costing systems?<br />
6. Which of the following would be accounted for using a job order cost system?<br />
7. A company developed the following per-unit standards for its product: 2 pounds of direct materials at<br />
$6 per pound. Last month, 2,000 pounds of direct materials were purchased for $11,400. The direct<br />
materials price variance for last month was<br />
8. Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of<br />
setting up machines, $800,000; machining, $1,800,000; and inspecting, $600,000. Information on the two<br />
products is:<br />
9. A company must price its product to cover its costs and earn a reasonable profit in<br />
10. Manufacturing overhead costs are applied to work in process on the basis of<br />
11. Gottberg Mugs is planning to sell 2,000 mugs and produce 2,200 mugs during April. Each<br />
mug requires 2 pounds of resin and a half hour of direct labor. Resin costs $1 per pound and employees<br />
of the company are paid $12.50 per hour. Manufacturing overhead is applied at a rate of 120% of direct<br />
labor costs. Gottberg has 2,000 pounds of resin in beginning inventory and wants to have 2,400 pounds in<br />
ending inventory. How much is the total amount of budgeted direct labor for April?<br />
12. Which of the following represents the two basic types of cost accounting systems?<br />
13. Which one of the following is NEVER part of recording the issuance of raw materials in a job<br />
order cost system?<br />
14. Which of the following statements is FALSE?<br />
15. Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of<br />
$74,400 and sales for the current year of $100,000. How much is Hess’s break-even point?<br />
16. H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and<br />
wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent<br />
contribution margin. If other factors are equal, which product should H55 push to customers?
17. One of Astro Company's activity cost pools is machine setups, with estimated overhead of<br />
$150,000. Astro produces sparklers (400 setups) and lighters (600 setups). How much of the machine<br />
setup cost pool should be assigned to sparklers?<br />
18. The cost to produce Part A was $10 per unit in 2005. During 2006, it has increased to $11 per<br />
unit. In 2006, Supplier Company has offered to supply Part A for $9 per unit. For the make-or-buy<br />
decision,<br />
19. What is the best way to handle manufacturing overhead costs in order to get the most timely<br />
job cost information?<br />
20. Managerial accounting<br />
21. The per-unit standards for direct labor are 2 direct labor hours at $12 per hour. If in producing<br />
2,400 units, the actual direct labor cost was $51,200 for 4,000 direct labor hours worked, the total direct<br />
labor variance is<br />
22. Disney’s variable costs are 30% of sales. The company is contemplating an advertising<br />
campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the<br />
company's net income increase?<br />
23. All of the following statements are correct EXCEPT that<br />
24. In most cases, prices are set by the<br />
25. Seran Company has contacted Truckel Inc. with an offer to sell it 5,000 of the wickets for $18<br />
each. If Truckel makes the wickets, variable costs are $11 per unit. Fixed costs are $12 per unit; however,<br />
$5 per unit is avoidable. Should Truckel make or buy the wickets?<br />
26. What broad functions does the management of an organization perform?<br />
27. A standard cost is<br />
28. Which of the following factors would suggest a switch to activity-based costing?<br />
29. Which cost is NOT charged to the product under absorption costing?<br />
30. The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 11,200<br />
gallons of direct materials that actually cost $42,400 were used to produce 6,000 units of product. The<br />
direct materials quantity variance for last month was<br />
31. At January 1, 2004, Barry, Inc. has beginning inventory of 4,000 widgets. Barry estimates it<br />
will sell 35,000 units during the first quarter of 2004 with a 10% increase in sales each quarter. Barry’s<br />
policy is to maintain an ending inventory equal to 25% of the next quarter’s sales. Each widget costs $1<br />
and is sold for $1.50. How much is budgeted sales revenue for the third quarter of 2004?<br />
32. Which cost is charged to the product under variable costing?<br />
33. At the end of the year, manufacturing overhead has been overapplied. What occurred to<br />
create this situation?<br />
34. If the standard hours allowed are less than the standard hours at normal capacity,<br />
35. Waco’s Widgets plans to sell 22,000 widgets during May, 19,000 units in June, and 20,000<br />
during July. Waco keeps 10% of the next month’s sales as ending inventory. How many units should<br />
Waco produce during June?<br />
36. Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs<br />
consist of setting up machines, $800,000; machining, $1,800,000; and inspecting, $600,000. Information<br />
on the two products is:<br />
37. Prices are set by the competitive market when<br />
38. Which cost is NOT charged to the product under variable costing?<br />
39. Which one of the following is indirect labor considered?<br />
40. Which of the following statements is FALSE?<br />
41. What sometimes makes implementation of activity-based costing difficult in service industries<br />
is<br />
42. In traditional costing systems, overhead is generally applied based on