ACCT 344 DeVry Entire Course

Question 9.9. (TCO 7) Yo Department Store incurred $8,000 of indirect advertising costs for its operations. The
following data have been collected for 2013 for its three departments……….How much of the indirect advertising costs
will be allocated to the Cosmetics Department if newspaper ad space is the activity driver?(Points : 5)
Question 10.10. (TCO 5) Which best describes zero-base budgeting? (Points : 5)
Question 11.11. (TCO 5) Bug Company manufactures buggies. Manufacturing a buggy takes 20 units of wood and 1
unit of steel. Scheduled production of buggies for the next 2 months is 500 and 600 units, respectively. Beginning
inventory is 4,000 units of wood and 30 units of steel. The ending inventory of wood is planned to decrease 500 units
in each of the next 2 months, and the steel inventory is expected to increase 5 units in each of the next 2 months. How
many units of wood are expected to be used in production during the second month? (Points : 5)
Question 12.12. (TCO 4) Which statement is true? (Points : 5)
Question 13.13. (TCO 6) Using more highly skilled direct laborers might affect which variance? (Points : 5)
Question 14.14. (TCO 6) Which equation measures the total budget variance? (Points : 5)…………(TCO 1) George
Corporation has an estimated monthly sales of 12,000 units for $80 per unit. Variable costs include manufacturing costs
of $50 and distribution costs of $20. Fixed costs are $60,000 per month. Required: Determine each of the following
values. a. Unit contribution margin b. Monthly break-even unit sales volume Create a contribution margin-based income
statement. (Points : 30)
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Question 1.1. (TCO 1) George Corporation has an estimated monthly sales of 12,000 units for $80 per unit. Variable
costs include manufacturing costs of $50 and distribution costs of $20. Fixed costs are $60,000 per
month……Required: Determine each of the following values. a. Unit contribution margin b. Monthly break-even unit
sales volume Create a contribution margin-based income statement. (Points : 30)
Question 2.2. (TCO 7) Darling Manufacturing Inc. manufactures two products, A and B, from a joint process. A single
production costs $5,000 and results in 200 units of A and 800 units of B. To be ready for sale, both products must be
processed further, incurring seperable costs of $3 per unit for A and $4 per unit for B. The market price for Product A
is $15 and for Product B is $10…..Required: Allocate joint production costs to each product using the net realizable
value method. (Points : 30)
Question 3.3. (TCO 6) Santa Inc. manufactures toys based on the following information……....Required: Compute the
following variances (show calculations). a. Materials usage variance b. Labor rate variance -c. Fixed overhead budget
variance (Points : 30)
Question 4.4. (TCO 4) Toshi Company incurred the following costs in manufacturing desk……During the period, the
company produced and sold 1,000 units. a. What is the inventory cost per unit using absorption costing? b. What is the
inventory cost per unit using variable costing? (Points : 30)
Question 5.5. (TCO 8) Musical Instruments Company manufactures two products (trumpets and trombones). Overhead
costs ($175,000) have been divided into three cost pools that use the following activity drivers..........Required (show all
calculations) a. What is the allocation rate for trumpets per setup using activity-based costing? b. What is the allocation
rate for trumpets per machine hours using activity-based costing? c. What is the allocation rate for trumpets per packing
order using activity-based costing? (Points : 30)
Question 6.6. (TCO 5) The Baxter Corporation has the following budgeted and actual results……Required: Prepare a
performance report for all costs, showing flexible budget variances (indicate F or U).