ACCT 344 Cost Accounting Final Exam Answers

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)
Page 2
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 marginbased
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).