ACCT 346 Week 4 Midterm 1 ACCT 346 Week 1-7 All Discussion Questions (Devry) ACCT 346 Managerial Accounting Entire Course ACCT 346 Week 4 Midterm 2 ACCT-346 Managerial Accounting Course Project on Bravo Baking Company (Devry)

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1. Question :
(TCO 1) Managerial accounting stresses accounting concepts and
procedures that are relevant to preparing reports for
2. Question :
TCO 1) Which of the following statements regarding fixed costs is true?
3. Question :
(TCO 1) You own a car and are trying to decide whether or not to trade
it in and buy a new car. Which of the following costs is an opportunity
cost in this situation?
4. Question :
(TCO 1) Shula’s 347 Grill has budgeted the following costs for a month
in which 1,600 steak dinners will be produced and sold: materials,
$4,080; hourly labor (variable), $5,200; rent (fixed), $1,700;
depreciation, $800; and other fixed costs, $600. Each steak dinner sells
for $14.00 each. How much is the budgeted variable cost per unit?
5. Question :
(TCO 1) Which of the following is an example of a manufacturing
overhead cost?
6. Question :
(TCO 1) Which of the following is a period cost?
7. Question :
(TCO 1) If the balance in the Finished Goods Inventory account
increased by $30,000 during the period and the cost of goods
manufactured was $220,000, how much is cost of goods sold?
8. Question :

2. (TCO 2) BCS Company applies manufacturing overhead based on direct
labor cost. Information concerning manufacturing overhead and labor
for August follows:
Estimated
Actual
9.Question :
(TCO 2) During 2011, Madison Company applied overhead using a joborder costing system at a rate of $12 per direct labor hours. Estimated
direct labor hours for the year were 150,000, and estimated overhead for
the year was $1,800,000. Actual direct labor hours for 2011 were
140,000 and actual overhead was $1,670,000.
What is the amount of under or over applied overhead for the year?
10. Question :
(TCO 3) Companies in which of the following industries would not be
likely to use process costing?
11. Question :
(TCO 3) The Blending Department began the period with 45,000 units.
During the period the department received another 30,000 units from the
prior department and completed 60,000 units during the period. The
remaining units were 75% complete. How much are equivalent units in
The Blending Department’s work in process inventory at the end of the
period?
12. Question :
(TCO 3) During March, the varnishing department incurred costs of
$90,250 for direct labor. The beginning inventory was 3,500 units and
10,000 units were transferred to the varnishing department from the
sanding department during June. The direct labor cost in the beginning
inventory was $27,270. The ending inventory consisted of 2,000 units,
which were 25% complete with respect to direct labor. What is the cost
per equivalent unit for direct labor?
13. Question :
(TCO 4) Clearance Depot has total monthly costs of $8,000 when 2,500
units are produced and $12,400 when 5,000 units are produced. What is
the estimated total monthly fixed cost?
1. Question :

3. (TCO 4) The margin of safety is the difference between
2. Question :
(TCO 4) Allen Company sells homework machines for $100 each.
Variable costs per unit are $75 and total fixed costs are $62,000. Allen is
considering the purchase of new equipment that would increase fixed
costs to $84,000, but decrease the variable costs per unit to $60. At that
level Allen Company expects to sell 3,000 units next year. What is
Allen’s break-even point in units if it purchases the new equipment?
3.Question :
(TCO 4) Paula Corporation sells a single product at a price of $275 per
unit. Variable cost per unit is $135 and fixed costs total $356,860. If
sales are expected to be $825,000, what is Paula’s margin of safety?
4. Question :
(TCO 5) In variable costing, when does fixed manufacturing overhead
become an expense?
5. Question :
(TCO 5) Variable costing income is a function of:
6. Question :
(TCO 5) Peak Manufacturing produces snow blowers. The selling price
per snow blower is $100. Costs involved in production are:
Direct Material per unit
$20
Direct Labor per unit
12
Variable manufacturing overhead per unit
10
Fixed manufacturing overhead per year
$148,500
In addition, the company has fixed selling and administrative costs of
$150,000 per year. During the year, Peak produces 45,000 snow blowers
and sells 30,000 snow blowers. How much is cost of goods sold using
full costing?
7.Question :

4. (TCO 6) Costs may be allocated to
8. Question :
(TCO 5) An allocation base
9. Question :
(TCO 6) The building maintenance department for Jones Manufacturing
Company budgets annual costs of $4,200,000 based on the expected
operating level for the coming year. The costs are allocated to two
production departments. The following data relate to the potential
allocation bases:
Production Dept. 1
Production Dept. 2
Square footage
15,000
45,000
Direct labor hours
25,000
50,000
If Jones assigns costs to departments based on square footage, how
much total costs will be allocated to Production Department 1
10. Question :
(TCO 7) A company is trying to decide whether to sell partially
completed goods in their current state or incur additional costs to finish
the goods and sell them as complete units. Which of the following is not
relevant to the decision?
11. Question :
(TCO 7) BigByte Company has 12 obsolete computers that are carried in
inventory at a cost of $13,200. If these computers are upgraded at a cost
of $7,500, they could be sold for $15,300. Alternatively, the computers
could be sold "as is" for $9,000. What is the net advantage or
disadvantage of reworking the computers?
12. Question :
(TCO 7) Olde Store has 12,000 cans of crab meat just a week past the
expiration date. Each can cost $0.31. The cans could be sold as is for
$0.20 each, or relabeled and sold as gourmet cat food. The cost of

5. relabeling the cans would be $0.04 per can and the cans would then sell
for $0.29 per can. What should be done with the cans and why?
1. Question :
(TCO 3) Describe a process costing system, including the types of
companies that commonly use this system. How can process costing
information be used in incremental analysis?
2. Question :
(TCO 7) Each year, ACE Engines surveys 7,600 former and prospective
customers regarding satisfaction and brand awareness. For the current
year, the company is considering outsourcing the survey to RBG
Associates, who have offered to conduct the survey and summarize
results for $50,000. Robert Ace, the president of ACE Engines, believes
that RBG will do a higher-quality job than his company has been doing,
but is unwilling to spend more than $12,000 above current costs. The
head of bookkeeping for ACE has prepared the following summary of
costs related to the survey in the prior year.
Prepare an incremental analysis in good form to determine the impact on
profit of going outside versus conducting the survey as in the past. Will
ACE accept the RBG offer? Why or why not?
3. Question :
(TCO 4) The following monthly data are available for RedEx, which
produces only one product that it sells for $84 each. Its unit variable
costs are $28 and its total fixed expenses are $64,960. Sales during April
totaled 1,600 units.

6. relabeling the cans would be $0.04 per can and the cans would then sell
for $0.29 per can. What should be done with the cans and why?
1. Question :
(TCO 3) Describe a process costing system, including the types of
companies that commonly use this system. How can process costing
information be used in incremental analysis?
2. Question :
(TCO 7) Each year, ACE Engines surveys 7,600 former and prospective
customers regarding satisfaction and brand awareness. For the current
year, the company is considering outsourcing the survey to RBG
Associates, who have offered to conduct the survey and summarize
results for $50,000. Robert Ace, the president of ACE Engines, believes
that RBG will do a higher-quality job than his company has been doing,
but is unwilling to spend more than $12,000 above current costs. The
head of bookkeeping for ACE has prepared the following summary of
costs related to the survey in the prior year.
Prepare an incremental analysis in good form to determine the impact on
profit of going outside versus conducting the survey as in the past. Will
ACE accept the RBG offer? Why or why not?
3. Question :
(TCO 4) The following monthly data are available for RedEx, which
produces only one product that it sells for $84 each. Its unit variable
costs are $28 and its total fixed expenses are $64,960. Sales during April
totaled 1,600 units.