The document outlines various accounting questions related to managerial and financial accounting topics including cost accounting, fixed and variable costs, break-even analysis, and cost allocation. It presents multiple-choice questions (MCQs) that require understanding of concepts such as opportunity cost, equivalent units, and cost of goods manufactured. The questions are framed to test knowledge on a wide range of accounting principles and calculations.

1. Devry ACCT 346 Week 4 Midterm 2
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ACCT 346 Week 4 Midterm 2
1.Question :
(TCO 1) Which of the following is not a difference
between financial accounting and managerial
accounting?
2. Question :
TCO 1) Which of the following statements
regarding fixed costs is true?

2. 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 :

3. (TCO 1) Product costs
7. Question :
(TCO 1) At December 31, 2010, WDT Inc. has a
balance in the Work in Process Inventory account
of $62,000. At January 1, 2010, the balance was
$55,000. Current manufacturing costs for the year
are $292,000, and cost of goods sold is $284,000.
How much is cost of goods manufactured?
8. Question :
(TCO 2) BCS Company applies manufacturing
overhead based on direct labor hours. Information
concerning manufacturing overhead and labor for
August follows:
Estimated
Actual
9. Question :

4. (TCO 2) Citrus Company incurred manufacturing
overhead costs of $300,000. Total overhead
applied to jobs was $306,000. What was the
amount of overapplied or underapplied overhead?
10. Question :
(TCO 3) Companies in which of the following
industries would notbe likely to use process
costing?
11.Question :
(TCO 3) The Blending Department began the
period with 20,000 units. During the period the
department received another 80,000 units from
the prior department and at the end of the period
30,000 units remained, which were 40% complete.
How much are equivalent units in The Blending
Department’s work in process inventory at the end
of the period?
12. Question :

5. (TCO 3) Ranger Glass Company manufactures glass
for French doors. At the start of May, 2,000 units
were in-process. During May, 11,000 units were
completed and 3,000 units were in process at the
end of May. These in-process units were 90%
complete with respect to material and 50%
complete with respect to conversion costs. Other
information is as follows:
Calculate the cost per equivalent unit for
conversion costs.
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?

6. 1. Question :
(TCO 4) Which of the following will have no effect
on the break-even point in units?
2. Question :
(TCO 4) Circle K Furniture has a contribution
margin ratio of 16%. If fixed costs are $176,800,
how many dollars of revenue must the company
generate in order to reach the break-even point?
3. Question :
(TCO 4) Randy Company produces a single product
that is sold for $85 per unit. If variable costs per
unit are $26 and fixed costs total $47,500, how
many units must Randy sell in order to earn a
profit of $100,000?
4. Question :

7. (TCO 5) In full 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:
7. Question :
(TCO 6) Which of the following is not a reason that
companies allocate costs?
8. Question :
(TCO 6) Which of the following statements about
cost pools is not
true?
9. Question :

8. (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
10. Question :
(TCO 7) A company is currently making a necessary
component in house (the company is producing
the component for its own use). The company has
received an offer to buy the component from an
outside supplier. A machine is being rented to
make the component. If the company were to buy
the component, the machine would no longer be
rented. The rent on the machine, in relation to the
decision to make or buy the component, is:
11. Question :

9. (TCO 7) Ricket Company has 1,500 obsolete
calculators that are carried in inventory at a cost of
$13,200. If these calculators are upgraded at a cost
of $9,500, they could be sold for $22,500.
Alternatively, the calculators could be sold "as is"
for $9,000. What is the net advantage or
disadvantage of reworking the calculators?
12. Question :
(TCO 7) YXZ Company’s market for the Model 55
has changed significantly, and YXZ has had to drop
the price per unit from $275 to $135. There are
some units in the work in process inventory that
have costs of $160 per unit associated with them.
YXZ could sell these units in their current state for
$100 each. It will cost YXZ $10 per unit to complete
these units so that they can be sold for $135 each.
When the incremental revenues and expenses are
analyzed, what is the financial impact?

10. 1. Question :
(TCO 3) What are transferred-in costs? Which
departments will never have transferred-in costs?
2. Question :
(TCO 7) Computer Boutique sells computer
equipment and home office furniture. Currently,
the furniture product line takes up approximately
50% of the company's retail floor space. The
president of Computer Boutique is trying to decide
whether the company should continue offering
furniture or just concentrate on computer
equipment. If furniture is dropped, salaries and
other direct fixed costs can be avoided. In
addition, sales of computer equipment can
increase by 13%. Allocated fixed costs are assigned
based on relative sales.
Computer
Home Office

11. Equipment
Furniture
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.