(New) final exam for acc 349 all correct answers 100%
ACC/349 Final Exam ANSWERS ARE HERE Quality and inexpensive:P.S. Your questions will be chosen randomly from a large setof questions. Nobody can guarantee that these questions willcover completely your exam. If I helped you please leave “A”feedback (I need it very much). Thank you and good luck...1) What is the best way to handle manufacturing overhead costs in order to get the most timelyjob cost information?A. The company should add actual manufacturing overhead costs to jobs as soon as theoverhead costs are incurred.B. The company should determine an allocation rate as soon as the actual costs are known,and then apply manufacturing overhead to jobs.C. The company should apply overhead using an estimated rate throughout the year.D. Thecompany should account for only the direct production costs.2) At the end of the year, manufacturing overhead has been overapplied. What occurred tocreate this situation?A. The company incurred more manufacturing overhead costs than the manufacturing overheadassigned to jobsB. The actual manufacturing overhead costs were less than the manufacturing overheadassigned to jobsC. The company incurred more total job costs than the amount budgeted for the jobD. Estimated manufacturing overhead was less than actual manufacturing overhead costs3) Luca Company overapplied manufacturing overhead during 2006. Which one of the followingis part of the year end entry to dispose of the overapplied amount assuming the amount ismaterialA. A decrease to work in process inventoryB. A decrease to applied overheadC. An increase to finished goodsD. An increase to cost of goods sold4) Which of the following would be accounted for using a job order cost system?A. The production of textbooksB. The production of town homesC. The pasteurization of milk
D. The production of cans of spinach5) Which one of the following is NEVER part of recording the issuance of raw materials in a joborder cost system?A. Debit Manufacturing OverheadB. Debit Finished Goods InventoryC. Debit Work in Process InventoryD. Credit Raw Materials Inventory Finished Goods Inventory is debited when goods are transferred from work in process to finished goods, not when raw materials are issued for a job.6. What is unique about the flow of costs in a job order cost system?A. It involves accumulating material, labor, and manufacturing overhead costs as they areincurred in order to determine the job costB. Each job is costed separately in a Work in Process subsidiary ledgerC. Job costs cannot be measured until all overhead costs are determinedD. There are no costs remaining in Work in Process at year end7) Which one of the following costs would be included in manufacturing overhead of a lawnmower manufacturer?A. The cost of the fuel lines that run from the motor to the gas tankB. The cost of the wheelsC. Depreciation on the testing equipmentD. The wages earned by motor assemblers Depreciation on testing equipment would be included in manufacturing overhead because it is indirectly associated with the finished product.8) What broad functions do the management of an organization perform?A. Planning, directing, and controllingB. Directing, manufacturing, and controllingC. Planning, directing, and sellingD. Planning, manufacturing, and controlling9) Which of the following represents the correct order in which inventories are reported on amanufacturer’s balance sheet?A. Work in process, finished goods raw materialsB. Raw materials, work in process, finished goodsC. Finished goods, work in process, raw materialsD. Work in process, raw materials, finished goods10) In traditional costing systems, overhead is generally applied based onA. machine hoursB. direct laborC. direct material dollarsD. units of production11) An activity that has a direct cause-effect relationship with the resources consumed is a(n)A. overhead rate
B. product activityC. cost driverD. cost pool12) A well-designed activity-based costing system starts withA. computing the activity-based overhead rateB. analyzing the activities performed to manufacture a productC. identifying the activity-cost poolsD. assigning manufacturing overhead costs for each activity cost pool to products13) Which of the following factors would suggest a switch to activity-based costing?A. Overhead costs constitute a significant portion of total costsB. Production managers use data provided by the existing system.C. Product lines similar in volume and manufacturing complexityD. The manufacturing process has been stable14) All of the following statements are correct EXCEPT thatA. the objective of installing ABC in service firms is different than it is in a manufacturing firmB. the general approach to identifying activities and activity cost pools is the same in a servicecompany as in a manufacturing companyC. activity-based costing has been widely adopted in service industriesD. a larger proportion of overhead costs are company-wide costs in service industries15) What sometimes makes implementation of activity-based costing difficult in serviceindustries isA. identifying activities, activity cost plus, and cost driversB. attempting to reduce or eliminate nonvalue-added activitiesC. the labeling of activities as value-addedD. that a larger proportion of overhead costs are company-wide costs16) One of Astro Companys activity cost pools is machine setups, with estimated overhead of$150,000. Astro produces sparklers (400 setups) and lighters (600 setups). How much of themachine setup cost pool should be assigned to sparklers?A. $60,000B. $90,000C. $150,000D. $75,00017) Poodle Company manufactures two products, Mini A and Maxi B. Poodles overhead costs consist of setting up machines, $800,000; machining, $1,800,000; and inspecting, $600,000. Information on the two products is: Mini A Maxi B Overhead applied to Mini A using activity-based costing isA. $1,536,000B. $1,664,000
C. $1,920,000D. $1,200,00018) Poodle Company manufactures two products, Mini A and Maxi B. Poodles overhead costs consist of setting up machines, $800,000; machining, $1,800,000; and inspecting, $600,000. Information on the two products is: Overhead applied to Maxi B using activity-based costing isA. $1,536,000B. $1,664,000C. $2,000,000D. $1,280,00019) Seran Company has contacted Truckel Inc. with an offer to sell it 5,000 of the wickets for$18 each. If Truckel makes the wickets, variable costs are $11 per unit. Fixed costs are $12 perunit; however, $5 per unit is avoidable. Should Truckel make or buy the wickets?A. Buy; savings = $10,000B. Make; savings = $20,000C. Make; savings = $10,000D. Buy; savings = $25,00020) Rosen, Inc. has 10,000 obsolete calculators, which are carried in inventory at a cost of$20,000. If the calculators are scrapped, they can be sold for $1.10 each (for parts). If they arerepackaged, at a cost of $15,000, they could be sold to toy stores for $2.50 per unit. Whatalternative should be chosen, and why?A. Repackage; revenue is $5,000 greater than costB. Scrap; incremental loss is $9,000C. Repackage; receive profit of $10,000D. Scrap; profit is $1,000 greater21) The cost to produce Part A was $10 per unit in 2005. During 2006, it has increased to $11per unit. In 2006, Supplier Company has offered to supply Part A for $9 per unit. For the make-or-buy decisionA. incremental costs are $1 per unitB. net relevant costs are $1 per unitC. differential costs are $2 per unitD. incremental revenues are $2 per unit22) Hartley, Inc. has one product with a selling price per unit of $200, the unit variable cost is$75, and the total monthly fixed costs are $300,000. How much is Hartley’s contribution marginratio?A. 37.5%B. 150%C. 266.6%D. 62.5%.
23. Which statement describes a fixed cost?A. The amount per unit varies depending on the activity levelB. It varies in total at every level of activityC. It remains the same per unit regardless of activity levelD. Its total varies proportionally to the level of activity24) Disney’s variable costs are 30% of sales. The company is contemplating an advertisingcampaign that will cost $22,000. If sales are expected to increase $40,000, by how much willthe companys net income increase?A. $28,000B. $18,000C. $6,000D. $12,00025) Variable costingA. is required under GAAPB. is used for external reporting purposesC. is also known as full costingD. treats fixed manufacturing overhead as a period cost26) Which cost is NOT charged to the product under variable costing?A. Direct laborB. Direct materialsC. Fixed manufacturing overheadD. Variable manufacturing overhead27) Orbach Company sells its product for $40 per unit. During 2005, it produced 60,000 unitsand sold 50,000 units (there was no beginning inventory). Costs per unit are: direct materials$10, direct labor $6, and variable overhead $2. Fixed costs are: $480,000 manufacturingoverhead, and $60,000 selling and administrative expenses. The per unit manufacturing costunder absorption costing isA. $18B. $16C. $27D. $2628) Which of the following is NOT considered an advantage of using standard costs?A. Standard costs can be useful in setting prices for finished goodsB. Standard costs can reduce clerical costsC. Standard costs can make employees "cost-conscious."D. Standard costs can be used as a means of finding fault with performance29) The difference between a budget and a standard is thatA. a budget expresses managements plans, while a standard reflects what actually happenedB. standards are excluded from the cost accounting system, whereas budgets are generallyincorporated into the cost accounting systemC. a budget expresses a total amount while a standard expresses a unit amountD. a budget expresses what costs were, while a standard expresses what costs should be
30) If a company is concerned with the potential negative effects of establishing standards, theyshouldA. offer wage incentives to those meeting standardsB. set tight standards in order to motivate peopleC. not employ any standardsD. set loose standards that are easy to fulfill