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ACC 349 Final Exam Guide (New 2017 with Excel sheet)
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Excel Sheet can be used for any change in values, it automatically gives correct
answers 1. The following costs were incurred in September: Direct materials
$42,700 Direct labor $29,400 Manufacturing overhead $27,300 Selling expenses
$23,600 Administrative expenses $33,700 Conversion costs during the month
totaled: 2. A soft drink bottler incurred the following factory utility cost: $3,861
for 950 cases bottled and $3,922 for 1,200 cases bottled. Factory utility cost is a
mixed cost containing both fixed and variable components. The variable factory
utility cost per case bottled is closest to: 3 The following cost data pertain to the
operations of Swestka Department Stores, Inc., for the month of July. Corporate
headquarters building lease $87,600 Cosmetics Department sales commissions--
Northridge Store $5,230 Corporate legal office salaries $60,500 Store manager's
salary-Northridge Store $17,200 Heating-Northridge Store $20,200 Cosmetics
Department cost of sales--Northridge Store $37,400 Central warehouse lease cost
$11,100 Store security-Northridge Store $18,900 Cosmetics Department
manager's salary--Northridge Store $4,150 The Northridge Store is just one of
many stores owned and operated by the company. The Cosmetics Department is
one of many departments at the Northridge Store. The central warehouse serves
all of the company's stores. What is the total amount of the costs listed above that
are direct costs of the Cosmetics Department? 4 Erkkila Inc. reports that at an
activity level of 6,400 machine-hours in a month, its total variable inspection cost
is $425,930 and its total fixed inspection cost is $179,493. What would be the
average fixed inspection cost per unit at an activity level of 6,700 machine-hours
in a month? Assume that this level of activity is within the relevant range. 5. Nikkel
Corporation, a merchandising company, reported the following results for July:
Sales $407,000 Cost of goods sold (all variable) $173,400 Total variable selling
expense $20,400 Total fixed selling expense $22,200 Total variable administrative
expense $14,800 Total fixed administrative expense $39,700 The contribution
margin for July is: 6 Job 593 was recently completed. The following data have
been recorded on its job cost sheet: Direct materials $2,412 Direct labor-hours 74
labor-hours Direct labor wage rate $ 21 per labor-hour Machine-hours 137
machine-hours The Corporation applies manufacturing overhead on the basis of
machine-hours. The predetermined overhead rate is $22 per machine-hour. The
total cost that would be recorded on the job cost sheet for Job 593 would be: 7 The
Assembly Department started the month with 19,500 units in its beginning work in
process inventory. An additional 285,000 units were transferred in from the prior
department during the month to begin processing in the Assembly Department.
There were 45,250 units in the ending work in process inventory of the Assembly
Department. How many units were transferred to the next processing department
during the month? 8 Lasseter Corporation has provided its contribution format
income statement for August. The company produces and sells a single product. If
the company sells 5,200 units, its total contribution margin should be closest to: 9
Olds Inc., which produces a single product, has provided the following data for its
most recent month of operations: Number of units produced 5,400 Variable costs
per unit: Direct materials $88 Direct labor $79 Variable manufacturing overhead
$7 Variable selling and administrative expense $13 Fixed costs: Fixed
manufacturing overhead $210,600 Fixed selling and administrative expense
$388,800 There were no beginning or ending inventories. The absorption costing
unit product cost was: 10 Zurasky Corporation is considering two alternatives: A
and B. Costs associated with the alternatives are listed below: Alternative A
Alternative B Materials costs $22,000 $52,000 Processing costs $28,000 $28,000
Equipment rental $10,100 $28,200 Occupancy costs $10,500 $22,000 What is the
differential cost of Alternative B over Alternative A, including all of the relevant
costs? 11 Bossie Corporation uses an activity-based costing system with three
activity cost pools. The company has provided the following data concerning its
costs and its activity based costing system: Costs: Wages and salaries $284,000
Depreciation 268,000 Utilities 221,000 Total $773,000 Distribution of resource
consumption: Activity Cost Pools Assembly Setting up Other Total Wages and
salaries 45% 35% 20% 100% Depreciation 30% 10% 60% 100% Utilities 15%
65% 20% 100% How much cost, in total, would be allocated in the first-stage
allocation to the Assembly activity cost pool? 12 The cash budget is usually
prepared after the budgeted income statement. True False 13 Cadavieco
Detailing's cost formula for its materials and supplies is $2,090 per month plus
$15 per vehicle. For the month of November, the company planned for activity of
89 vehicles, but the actual level of activity was 49 vehicles. The actual materials
and supplies for the month was $2,660. The materials and supplies in the planning
budget for November would be closest to: Q-14 Aide Industries is a division of a
major corporation. Data concerning the most recent year appears below: Sales
$18,120,000 Net operating income $1,177,800 Average operating assets
$4,450,000 The division's return on investment (ROI) is closest to: (Round your
answer to 2 decimal places.) Q-15 Blue Corporation's standards call for 5,800
direct labor-hours to produce 1,450 units of product. During May 1,050 units
were produced and the company worked 1,350 direct labor-hours. The standard
hours allowed for May production would be: Q-16 The following standards for
variable manufacturing overhead have been established for a company that makes
only one product: Standard hours per unit of output 6.0 hours Standard variable
overhead rate $12.40 per hour The following data pertain to operations for the
last month: Actual hours 2,600 hours Actual total variable manufacturing
overhead cost $32,870 Actual output 250 units What is the variable overhead
efficiency variance for the month? What is the variable overhead efficiency
variance for the month? 17 Wyly Inc. produces and sells a single product. The
selling price of the product is $240.00 per unit and its variable cost is $88.80 per
unit. The fixed expense is $374,598 per month. The break-even in monthly dollar
sales is closest to: (Round your intermediate calculations to 2 decimal places.)
Use excel sheet for any change in values 18 Part O43 is used in one of Scheetz
Corporation's products. The company's Accounting Department reports the
following costs of producing the 16,400 units of the part that are needed every
year. An outside supplier has offered to make the part and sell it to the company
for $32.00 each. If this offer is accepted, the supervisor's salary and all of the
variable costs, including direct labor, can be avoided. The special equipment used
to make the part was purchased many years ago and has no salvage value or other
use. The allocated general overhead represents fixed costs of the entire company.
If the outside supplier's offer were accepted, only $22,400 of these allocated
general overhead costs would be avoided. Required: a. Prepare a report that
shows the effect on the company's total net operating income of buying part O43
from the supplier rather than continuing to make it inside the company. (Input the
amount as a positive value. Omit the "$" sign in your response.) Net operating
income would decrease be by $ . Make 19 Activity rates from Quattrone
Corporation's activity-based costing system are listed below. The company uses
the activity rates to assign overhead costs to products: Activity Cost Pools Activity
Rate Processing customer orders $94.07 per customer order Assembling products
$2.87 per assembly hour Setting up batches $62.33 per batch Last year, Product
F76D involved 3 customer orders, 464 assembly hours, and 21 batches. How
much overhead cost would be assigned to Product F76D using the activity-based
costing system? 20 The Gasson Company uses the weighted-average method in its
process costing system. The company's ending work in process inventory consists
of 12,000 units, The ending work in process inventory is 100% complete with
respect to materials and 70% complete with respect to labor and overhead. If the
costs per equivalent unit for the period $4.10 for the materials and $1.30 for labor
and overhead, whatis the balance of the ending work in process inventory account
would be: (Do not round Cost per equivalent unit)
__________________________________________________________________
____________
ACC 349 Final Exam Guide
To Purchase This Material Click below Link
http://www.acc349mart.com/product-26-ACC-349-Final-Exam-Guide
FOR MORE CLASSES VISIT
www.acc349mart.com
1) What does cost accounting measure, record, and report?
2) What is the best way to handle manufacturing overhead costs in order to get the
most timely job cost information?
3) At the end of the year, manufacturing overhead has been overapplied. What
occurred to create this situation?
4) Which of the following would be accounted for using a job order cost system?
5) In a job order cost accounting system, the Work in Process account is
6) Which one of the following is an important feature of a job order cost system?
7) Which one of the following is indirect labor considered?
8) Which of the following is an element of manufacturing overhead?
9) Which one of the following costs would be included in manufacturing overhead
of a lawn mower manufacturer?
10) A well-designed activity-based costing system starts with
11) An activity that has a direct cause-effect relationship with the resources
consumed is a(n)
12) In traditional costing systems, overhead is generally applied based on
13) All of the following statements are correct EXCEPT that
14) Which of the following is a value-added activity?
15) Which of the following is a nonvalue-added activity?
16) Poodle Company manufactures two products, Mini A and Maxi B. Poodle's
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
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Overhead applied to Mini A using activity-based costing is
17) Poodle Company manufactures two products, Mini A and Maxi B. Poodle's
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
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Overhead applied to Mini A using traditional costing using direct labor hours is
18) Which of the following factors would suggest a switch to activity-based
costing?
19) 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 are repackaged, at a cost of $15,000, they could be sold to toy
stores for $2.50 per unit. What alternative should be chosen, and why?
20) Walton, Inc. is unsure of whether to sell its product assembled or
unassembled. The unit cost of the unassembled product is $16, while the cost of
assembling each unit is estimated at $17. Unassembled units can be sold for $55,
while assembled units could be sold for $71 per unit. What decision should Walton
make?
21) The cost to produce Part A was $10 per unit in 2005. During 2006, it has
increased to $11 per unit. In 2006, Supplier Company has offered to supply Part A
for $9 per unit. For the make-or-buy decision,
22) Hess, Inc. sells a single product with a contribution margin of $12 per unit
and fixed costs of $74,400 and sales for the current year of $100,000. How much
is Hess’s break-even point?
23) 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 margin ratio?
24) H55 Company sells two products, beer and wine. Beer has a 10 percent profit
margin and wine has a 12 percent profit margin. Beer has a 27 percent
contribution margin and wine has a 25 percent contribution margin. If other
factors are equal, which product should H55 push to customers?
25) Which cost is charged to the product under variable costing?
26) Which cost is NOT charged to the product under variable costing?
27) Variable costing
28) If a company is concerned with the potential negative effects of establishing
standards, they should
29) The difference between a budget and a standard is that
30) A standard cost is
31) The per-unit standards for direct labor are 2 direct labor hours at $12 per
hour. If in producing 2,400 units, the actual direct labor cost was $51,200 for
4,000 direct labor hours worked, the total direct labor variance is
32) The total variance is $10,000. The total materials variance is $4,000. The total
labor variance is twice the total overhead variance. What is the total overhead
variance?
33) The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last
month, 11,200 gallons of direct materials that actually cost $42,400 were used to
produce 6,000 units of product. The direct materials quantity variance for last
month was
34) If the standard hours allowed are less than the standard hours at normal
capacity,
35) Manufacturing overhead costs are applied to work in process on the basis of
36) The overhead volume variance relates only to
37) At January 1, 2004, Barry, Inc. has beginning inventory of 4,000 widgets.
Barry estimates it will sell 35,000 units during the first quarter of 2004 with a 10%
increase in sales each quarter. Barry’s policy is to maintain an ending inventory
equal to 25% of the next quarter’s sales. Each widget costs $1 and is sold for
$1.50. How much is budgeted sales revenue for the third quarter of 2004?
38) Lewis Hats is planning to sell 600 straw hats. Each hat requires a half pound
of straw and a quarter hour of direct labor. Straw costs $0.20 per pound and
employees of the company are paid $22 per hour. Lewis has 80 pounds of straw
and 40 hats in beginning inventory and wants to have 50 pounds of straw and 60
hats in ending inventory. How many units should Lewis Hats produce in April?
39) Gottberg Mugs is planning to sell 2,000 mugs and produce 2,200 mugs during
April. Each mug requires 2 pounds of resin and a half hour of direct labor. Resin
costs $1 per pound and employees of the company are paid $12.50 per hour.
Manufacturing overhead is applied at a rate of 120% of direct labor costs.
Gottberg has 2,000 pounds of resin in beginning inventory and wants to have
2,400 pounds in ending inventory. How much is the total amount of budgeted
direct labor for April?
40) The cost-plus pricing approach's major advantage is
41) A company must price its product to cover its costs and earn a reasonable
profit in
42) Prices are set by the competitive market when
__________________________________________________________________
___________
ACC 349 Final Exam Guide
To Purchase This Material Click below Link
http://www.acc349paper.com/ACC-349-Assignments-and-DQs/product-26-ACC-
349-Final-Exam-Guide
FOR MORE CLASSES VISIT
www.acc349paper.com
1) What does cost accounting measure, record, and report?
2) What is the best way to handle manufacturing overhead costs in order to get the
most timely job cost information?
3) At the end of the year, manufacturing overhead has been overapplied. What
occurred to create this situation?
4) Which of the following would be accounted for using a job order cost system?
5) In a job order cost accounting system, the Work in Process account is
6) Which one of the following is an important feature of a job order cost system?
7) Which one of the following is indirect labor considered?
8) Which of the following is an element of manufacturing overhead?
9) Which one of the following costs would be included in manufacturing overhead
of a lawn mower manufacturer?
10) A well-designed activity-based costing system starts with
11) An activity that has a direct cause-effect relationship with the resources
consumed is a(n)
12) In traditional costing systems, overhead is generally applied based on
13) All of the following statements are correct EXCEPT that
14) Which of the following is a value-added activity?
15) Which of the following is a nonvalue-added activity?
16) Poodle Company manufactures two products, Mini A and Maxi B. Poodle's
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
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Overhead applied to Mini A using activity-based costing is
17) Poodle Company manufactures two products, Mini A and Maxi B. Poodle's
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
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Overhead applied to Mini A using traditional costing using direct labor hours is
18) Which of the following factors would suggest a switch to activity-based
costing?
19) 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 are repackaged, at a cost of $15,000, they could be sold to toy
stores for $2.50 per unit. What alternative should be chosen, and why?
20) Walton, Inc. is unsure of whether to sell its product assembled or
unassembled. The unit cost of the unassembled product is $16, while the cost of
assembling each unit is estimated at $17. Unassembled units can be sold for $55,
while assembled units could be sold for $71 per unit. What decision should Walton
make?
21) The cost to produce Part A was $10 per unit in 2005. During 2006, it has
increased to $11 per unit. In 2006, Supplier Company has offered to supply Part A
for $9 per unit. For the make-or-buy decision,
22) Hess, Inc. sells a single product with a contribution margin of $12 per unit
and fixed costs of $74,400 and sales for the current year of $100,000. How much
is Hess’s break-even point?
23) 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 margin ratio?
24) H55 Company sells two products, beer and wine. Beer has a 10 percent profit
margin and wine has a 12 percent profit margin. Beer has a 27 percent
contribution margin and wine has a 25 percent contribution margin. If other
factors are equal, which product should H55 push to customers?
25) Which cost is charged to the product under variable costing?
26) Which cost is NOT charged to the product under variable costing?
27) Variable costing
28) If a company is concerned with the potential negative effects of establishing
standards, they should
29) The difference between a budget and a standard is that
30) A standard cost is
31) The per-unit standards for direct labor are 2 direct labor hours at $12 per
hour. If in producing 2,400 units, the actual direct labor cost was $51,200 for
4,000 direct labor hours worked, the total direct labor variance is
32) The total variance is $10,000. The total materials variance is $4,000. The total
labor variance is twice the total overhead variance. What is the total overhead
variance?
33) The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last
month, 11,200 gallons of direct materials that actually cost $42,400 were used to
produce 6,000 units of product. The direct materials quantity variance for last
month was
34) If the standard hours allowed are less than the standard hours at normal
capacity,
35) Manufacturing overhead costs are applied to work in process on the basis of
36) The overhead volume variance relates only to
37) At January 1, 2004, Barry, Inc. has beginning inventory of 4,000 widgets.
Barry estimates it will sell 35,000 units during the first quarter of 2004 with a 10%
increase in sales each quarter. Barry’s policy is to maintain an ending inventory
equal to 25% of the next quarter’s sales. Each widget costs $1 and is sold for
$1.50. How much is budgeted sales revenue for the third quarter of 2004?
38) Lewis Hats is planning to sell 600 straw hats. Each hat requires a half pound
of straw and a quarter hour of direct labor. Straw costs $0.20 per pound and
employees of the company are paid $22 per hour. Lewis has 80 pounds of straw
and 40 hats in beginning inventory and wants to have 50 pounds of straw and 60
hats in ending inventory. How many units should Lewis Hats produce in April?
39) Gottberg Mugs is planning to sell 2,000 mugs and produce 2,200 mugs during
April. Each mug requires 2 pounds of resin and a half hour of direct labor. Resin
costs $1 per pound and employees of the company are paid $12.50 per hour.
Manufacturing overhead is applied at a rate of 120% of direct labor costs.
Gottberg has 2,000 pounds of resin in beginning inventory and wants to have
2,400 pounds in ending inventory. How much is the total amount of budgeted
direct labor for April?
40) The cost-plus pricing approach's major advantage is
41) A company must price its product to cover its costs and earn a reasonable
profit in
42) Prices are set by the competitive market when

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ACC 349 Final Exam

  • 1. ACC 349 Final Exam Guide (New 2017 with Excel sheet) To Purchase This Material Click below Link http://www.acc349mart.com/product-38-ACC-349-Final-Exam-Guide-(New- 2017-with-Excel-sheet) FOR MORE CLASSES VISIT www.acc349mart.com Excel Sheet can be used for any change in values, it automatically gives correct answers 1. The following costs were incurred in September: Direct materials $42,700 Direct labor $29,400 Manufacturing overhead $27,300 Selling expenses $23,600 Administrative expenses $33,700 Conversion costs during the month totaled: 2. A soft drink bottler incurred the following factory utility cost: $3,861 for 950 cases bottled and $3,922 for 1,200 cases bottled. Factory utility cost is a mixed cost containing both fixed and variable components. The variable factory utility cost per case bottled is closest to: 3 The following cost data pertain to the operations of Swestka Department Stores, Inc., for the month of July. Corporate headquarters building lease $87,600 Cosmetics Department sales commissions-- Northridge Store $5,230 Corporate legal office salaries $60,500 Store manager's salary-Northridge Store $17,200 Heating-Northridge Store $20,200 Cosmetics Department cost of sales--Northridge Store $37,400 Central warehouse lease cost $11,100 Store security-Northridge Store $18,900 Cosmetics Department manager's salary--Northridge Store $4,150 The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores. What is the total amount of the costs listed above that are direct costs of the Cosmetics Department? 4 Erkkila Inc. reports that at an activity level of 6,400 machine-hours in a month, its total variable inspection cost is $425,930 and its total fixed inspection cost is $179,493. What would be the average fixed inspection cost per unit at an activity level of 6,700 machine-hours in a month? Assume that this level of activity is within the relevant range. 5. Nikkel Corporation, a merchandising company, reported the following results for July: Sales $407,000 Cost of goods sold (all variable) $173,400 Total variable selling expense $20,400 Total fixed selling expense $22,200 Total variable administrative expense $14,800 Total fixed administrative expense $39,700 The contribution margin for July is: 6 Job 593 was recently completed. The following data have
  • 2. been recorded on its job cost sheet: Direct materials $2,412 Direct labor-hours 74 labor-hours Direct labor wage rate $ 21 per labor-hour Machine-hours 137 machine-hours The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $22 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 593 would be: 7 The Assembly Department started the month with 19,500 units in its beginning work in process inventory. An additional 285,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 45,250 units in the ending work in process inventory of the Assembly Department. How many units were transferred to the next processing department during the month? 8 Lasseter Corporation has provided its contribution format income statement for August. The company produces and sells a single product. If the company sells 5,200 units, its total contribution margin should be closest to: 9 Olds Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 5,400 Variable costs per unit: Direct materials $88 Direct labor $79 Variable manufacturing overhead $7 Variable selling and administrative expense $13 Fixed costs: Fixed manufacturing overhead $210,600 Fixed selling and administrative expense $388,800 There were no beginning or ending inventories. The absorption costing unit product cost was: 10 Zurasky Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below: Alternative A Alternative B Materials costs $22,000 $52,000 Processing costs $28,000 $28,000 Equipment rental $10,100 $28,200 Occupancy costs $10,500 $22,000 What is the differential cost of Alternative B over Alternative A, including all of the relevant costs? 11 Bossie Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system: Costs: Wages and salaries $284,000 Depreciation 268,000 Utilities 221,000 Total $773,000 Distribution of resource consumption: Activity Cost Pools Assembly Setting up Other Total Wages and salaries 45% 35% 20% 100% Depreciation 30% 10% 60% 100% Utilities 15% 65% 20% 100% How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool? 12 The cash budget is usually prepared after the budgeted income statement. True False 13 Cadavieco Detailing's cost formula for its materials and supplies is $2,090 per month plus $15 per vehicle. For the month of November, the company planned for activity of 89 vehicles, but the actual level of activity was 49 vehicles. The actual materials and supplies for the month was $2,660. The materials and supplies in the planning
  • 3. budget for November would be closest to: Q-14 Aide Industries is a division of a major corporation. Data concerning the most recent year appears below: Sales $18,120,000 Net operating income $1,177,800 Average operating assets $4,450,000 The division's return on investment (ROI) is closest to: (Round your answer to 2 decimal places.) Q-15 Blue Corporation's standards call for 5,800 direct labor-hours to produce 1,450 units of product. During May 1,050 units were produced and the company worked 1,350 direct labor-hours. The standard hours allowed for May production would be: Q-16 The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 6.0 hours Standard variable overhead rate $12.40 per hour The following data pertain to operations for the last month: Actual hours 2,600 hours Actual total variable manufacturing overhead cost $32,870 Actual output 250 units What is the variable overhead efficiency variance for the month? What is the variable overhead efficiency variance for the month? 17 Wyly Inc. produces and sells a single product. The selling price of the product is $240.00 per unit and its variable cost is $88.80 per unit. The fixed expense is $374,598 per month. The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.) Use excel sheet for any change in values 18 Part O43 is used in one of Scheetz Corporation's products. The company's Accounting Department reports the following costs of producing the 16,400 units of the part that are needed every year. An outside supplier has offered to make the part and sell it to the company for $32.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $22,400 of these allocated general overhead costs would be avoided. Required: a. Prepare a report that shows the effect on the company's total net operating income of buying part O43 from the supplier rather than continuing to make it inside the company. (Input the amount as a positive value. Omit the "$" sign in your response.) Net operating income would decrease be by $ . Make 19 Activity rates from Quattrone Corporation's activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products: Activity Cost Pools Activity Rate Processing customer orders $94.07 per customer order Assembling products $2.87 per assembly hour Setting up batches $62.33 per batch Last year, Product F76D involved 3 customer orders, 464 assembly hours, and 21 batches. How
  • 4. much overhead cost would be assigned to Product F76D using the activity-based costing system? 20 The Gasson Company uses the weighted-average method in its process costing system. The company's ending work in process inventory consists of 12,000 units, The ending work in process inventory is 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the costs per equivalent unit for the period $4.10 for the materials and $1.30 for labor and overhead, whatis the balance of the ending work in process inventory account would be: (Do not round Cost per equivalent unit) __________________________________________________________________ ____________ ACC 349 Final Exam Guide To Purchase This Material Click below Link http://www.acc349mart.com/product-26-ACC-349-Final-Exam-Guide FOR MORE CLASSES VISIT www.acc349mart.com 1) What does cost accounting measure, record, and report? 2) What is the best way to handle manufacturing overhead costs in order to get the most timely job cost information? 3) At the end of the year, manufacturing overhead has been overapplied. What occurred to create this situation? 4) Which of the following would be accounted for using a job order cost system? 5) In a job order cost accounting system, the Work in Process account is 6) Which one of the following is an important feature of a job order cost system?
  • 5. 7) Which one of the following is indirect labor considered? 8) Which of the following is an element of manufacturing overhead? 9) Which one of the following costs would be included in manufacturing overhead of a lawn mower manufacturer? 10) A well-designed activity-based costing system starts with 11) An activity that has a direct cause-effect relationship with the resources consumed is a(n) 12) In traditional costing systems, overhead is generally applied based on 13) All of the following statements are correct EXCEPT that 14) Which of the following is a value-added activity? 15) Which of the following is a nonvalue-added activity? 16) Poodle Company manufactures two products, Mini A and Maxi B. Poodle's 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 Direct labor hours 15,000 25,000 Machine setups 600 400 Machine hours 24,000 26,000
  • 6. Inspections 800 700 Overhead applied to Mini A using activity-based costing is 17) Poodle Company manufactures two products, Mini A and Maxi B. Poodle's 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 Direct labor hours 15,000 25,000 Machine setups 600 400 Machine hours 24,000 26,000 Inspections 800 700 Overhead applied to Mini A using traditional costing using direct labor hours is 18) Which of the following factors would suggest a switch to activity-based costing? 19) 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 are repackaged, at a cost of $15,000, they could be sold to toy stores for $2.50 per unit. What alternative should be chosen, and why? 20) Walton, Inc. is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $16, while the cost of assembling each unit is estimated at $17. Unassembled units can be sold for $55, while assembled units could be sold for $71 per unit. What decision should Walton make?
  • 7. 21) The cost to produce Part A was $10 per unit in 2005. During 2006, it has increased to $11 per unit. In 2006, Supplier Company has offered to supply Part A for $9 per unit. For the make-or-buy decision, 22) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break-even point? 23) 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 margin ratio? 24) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers? 25) Which cost is charged to the product under variable costing? 26) Which cost is NOT charged to the product under variable costing? 27) Variable costing 28) If a company is concerned with the potential negative effects of establishing standards, they should 29) The difference between a budget and a standard is that 30) A standard cost is 31) The per-unit standards for direct labor are 2 direct labor hours at $12 per hour. If in producing 2,400 units, the actual direct labor cost was $51,200 for 4,000 direct labor hours worked, the total direct labor variance is
  • 8. 32) The total variance is $10,000. The total materials variance is $4,000. The total labor variance is twice the total overhead variance. What is the total overhead variance? 33) The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 11,200 gallons of direct materials that actually cost $42,400 were used to produce 6,000 units of product. The direct materials quantity variance for last month was 34) If the standard hours allowed are less than the standard hours at normal capacity, 35) Manufacturing overhead costs are applied to work in process on the basis of 36) The overhead volume variance relates only to 37) At January 1, 2004, Barry, Inc. has beginning inventory of 4,000 widgets. Barry estimates it will sell 35,000 units during the first quarter of 2004 with a 10% increase in sales each quarter. Barry’s policy is to maintain an ending inventory equal to 25% of the next quarter’s sales. Each widget costs $1 and is sold for $1.50. How much is budgeted sales revenue for the third quarter of 2004? 38) Lewis Hats is planning to sell 600 straw hats. Each hat requires a half pound of straw and a quarter hour of direct labor. Straw costs $0.20 per pound and employees of the company are paid $22 per hour. Lewis has 80 pounds of straw and 40 hats in beginning inventory and wants to have 50 pounds of straw and 60 hats in ending inventory. How many units should Lewis Hats produce in April? 39) Gottberg Mugs is planning to sell 2,000 mugs and produce 2,200 mugs during
  • 9. April. Each mug requires 2 pounds of resin and a half hour of direct labor. Resin costs $1 per pound and employees of the company are paid $12.50 per hour. Manufacturing overhead is applied at a rate of 120% of direct labor costs. Gottberg has 2,000 pounds of resin in beginning inventory and wants to have 2,400 pounds in ending inventory. How much is the total amount of budgeted direct labor for April? 40) The cost-plus pricing approach's major advantage is 41) A company must price its product to cover its costs and earn a reasonable profit in 42) Prices are set by the competitive market when __________________________________________________________________ ___________ ACC 349 Final Exam Guide To Purchase This Material Click below Link http://www.acc349paper.com/ACC-349-Assignments-and-DQs/product-26-ACC- 349-Final-Exam-Guide FOR MORE CLASSES VISIT www.acc349paper.com 1) What does cost accounting measure, record, and report? 2) What is the best way to handle manufacturing overhead costs in order to get the most timely job cost information?
  • 10. 3) At the end of the year, manufacturing overhead has been overapplied. What occurred to create this situation? 4) Which of the following would be accounted for using a job order cost system? 5) In a job order cost accounting system, the Work in Process account is 6) Which one of the following is an important feature of a job order cost system? 7) Which one of the following is indirect labor considered? 8) Which of the following is an element of manufacturing overhead? 9) Which one of the following costs would be included in manufacturing overhead of a lawn mower manufacturer? 10) A well-designed activity-based costing system starts with
  • 11. 11) An activity that has a direct cause-effect relationship with the resources consumed is a(n) 12) In traditional costing systems, overhead is generally applied based on 13) All of the following statements are correct EXCEPT that 14) Which of the following is a value-added activity? 15) Which of the following is a nonvalue-added activity? 16) Poodle Company manufactures two products, Mini A and Maxi B. Poodle's 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 Direct labor hours 15,000 25,000 Machine setups 600 400 Machine hours 24,000 26,000
  • 12. Inspections 800 700 Overhead applied to Mini A using activity-based costing is 17) Poodle Company manufactures two products, Mini A and Maxi B. Poodle's 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 Direct labor hours 15,000 25,000 Machine setups 600 400 Machine hours 24,000 26,000 Inspections 800 700 Overhead applied to Mini A using traditional costing using direct labor hours is 18) Which of the following factors would suggest a switch to activity-based costing?
  • 13. 19) 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 are repackaged, at a cost of $15,000, they could be sold to toy stores for $2.50 per unit. What alternative should be chosen, and why? 20) Walton, Inc. is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $16, while the cost of assembling each unit is estimated at $17. Unassembled units can be sold for $55, while assembled units could be sold for $71 per unit. What decision should Walton make? 21) The cost to produce Part A was $10 per unit in 2005. During 2006, it has increased to $11 per unit. In 2006, Supplier Company has offered to supply Part A for $9 per unit. For the make-or-buy decision, 22) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break-even point? 23) 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 margin ratio? 24) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent
  • 14. contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers? 25) Which cost is charged to the product under variable costing? 26) Which cost is NOT charged to the product under variable costing? 27) Variable costing 28) If a company is concerned with the potential negative effects of establishing standards, they should 29) The difference between a budget and a standard is that 30) A standard cost is 31) The per-unit standards for direct labor are 2 direct labor hours at $12 per hour. If in producing 2,400 units, the actual direct labor cost was $51,200 for 4,000 direct labor hours worked, the total direct labor variance is 32) The total variance is $10,000. The total materials variance is $4,000. The total labor variance is twice the total overhead variance. What is the total overhead variance?
  • 15. 33) The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 11,200 gallons of direct materials that actually cost $42,400 were used to produce 6,000 units of product. The direct materials quantity variance for last month was 34) If the standard hours allowed are less than the standard hours at normal capacity, 35) Manufacturing overhead costs are applied to work in process on the basis of 36) The overhead volume variance relates only to 37) At January 1, 2004, Barry, Inc. has beginning inventory of 4,000 widgets. Barry estimates it will sell 35,000 units during the first quarter of 2004 with a 10% increase in sales each quarter. Barry’s policy is to maintain an ending inventory equal to 25% of the next quarter’s sales. Each widget costs $1 and is sold for $1.50. How much is budgeted sales revenue for the third quarter of 2004? 38) Lewis Hats is planning to sell 600 straw hats. Each hat requires a half pound of straw and a quarter hour of direct labor. Straw costs $0.20 per pound and employees of the company are paid $22 per hour. Lewis has 80 pounds of straw and 40 hats in beginning inventory and wants to have 50 pounds of straw and 60 hats in ending inventory. How many units should Lewis Hats produce in April?
  • 16. 39) Gottberg Mugs is planning to sell 2,000 mugs and produce 2,200 mugs during April. Each mug requires 2 pounds of resin and a half hour of direct labor. Resin costs $1 per pound and employees of the company are paid $12.50 per hour. Manufacturing overhead is applied at a rate of 120% of direct labor costs. Gottberg has 2,000 pounds of resin in beginning inventory and wants to have 2,400 pounds in ending inventory. How much is the total amount of budgeted direct labor for April? 40) The cost-plus pricing approach's major advantage is 41) A company must price its product to cover its costs and earn a reasonable profit in 42) Prices are set by the competitive market when