ACC 202 EXAM 1

Which of the following systems focuses on activities as the fundamental cost drivers and uses the costs of those activities as building blocks for compiling the indirect costs of products and other cost objects? A. Product costing B. Process costing C. Job costing D. Activity-based costing

Activity-based costing

Which of the following is an example of a product that would cause a company to use a job costing system rather than a process costing system? Paper Towel Company. Movie Production Studio. Toothbrush Manufacturer. Pencil Manufacturer.

Movie Production Studio.

Which of the following statements is true: A. Sunk costs are not relevant costs. B.Sunk costs are relevant costs. C. Relevant costs are not used in decision-making. D. Irrelevant costs differ between alternatives.

Sunk costs are not relevant costs.

The manager of Winter Inc. is inspecting the job cost sheet for Job No. 44. During February, $50,000 of direct materials were requisitioned for Job No. 44 and $36,500 of direct labor cost was incurred on Job No. 44. Manufacturing overhead is allocated at 115% of direct labor cost. Actual manufacturing overhead costs incurred in February amounted to $53,000. Job No. 44 is completed on February 28. Is manufacturing overhead over-allocated or under-allocated for the month of February? By how much? A. Under-allocated by $36,500. B. Over-allocated by $53,000. C. Under-allocated by $11,025. D. Over-allocated by $14,675.

Under-allocated by $11,025.

Which of the following statements is false regarding job cost sheets? A. They can be used to record a job's total manufacturing costs. B. The only source document used in compiling a job cost sheet is the employee time ticket. C. They can be used in marketing and pricing decisions. D. They can be used to assess risks of future environmental costs.

he only source document used in compiling a job cost sheet is the employee time ticket.

Big Trail Running Company has started to produce running apparel in addition to the trail running shoes that they have manufactured for years. They feel that a departmental overhead rate would best reflect their overall manufacturing overhead usage. Based on research the following information was gathered for the upcoming year: Machining Department Finishing Department Estimated Manufacturing Overhead by Department $1,300,000 $200,000 Trail Running Shoes 100,000 machine hours 9,000 direct labor hours Running Apparel 50,000 machine hours 51,000 direct labor hours Manufacturing overhead is driven by machine hours for the machining department and direct labor hours for the finishing department. Based on this information, what is the departmental manufacturing overhead rate for the machining and finishing department, respectively? (Round any intermediary calculations and your final answer to the nearest cent.) A. $3.33 per machine hour and $8.67 per direct labor hour B. $10.17 per machine hour and $8.67 per direct labor hour C. $8.67 per machine hour and $4.33 per direct labor hour D. $8.67 per machine hour and $3.33 per direct labor hour

$8.67 per machine hour and $3.33 per direct labor hour

Gravity, Inc. produces chargers for electronic devices that store power in gloves that you wear while outdoors (in a sunny state). The company allocates manufacturing overhead based on the machine hours each job uses. Last year the company's budgeted and actual (incurred) costs were as follows: Budget Actual Direct labor hours 7,300 6,500 Machine hours 6,600 6,800 Maintenance on salespeople's autos $25,500 $26,400 Indirect materials $49,000 $53,500 Maintenance on trucks used for delivering products to customers $12,500 $11,500 Maintenance on plant equipment $65,500 $67,000 Indirect manufacturing labor $343,500 $425,000 Customer service hotline $18,500 $21,300 Plant utilities $28,300 $29,300 Direct labor cost $68,000 $67,000 What if the company chose to use direct labor hours as a basis for allocating overhead? What would the overallocated or underallocated overhead amount be? Carry the rate to four decimal places. Enter as a positive number if it is overallocated.

-141793

Gravity, Inc. produces chargers for electronic devices that store power in gloves that you wear while outdoors (in a sunny state). The company allocates manufacturing overhead based on the machine hours each job uses. Last year the company's budgeted and actual (incurred) costs were as follows: Budget Actual Direct labor hours 7,300 6,500 Machine hours 6,600 6,800 Maintenance on salespeople's autos $25,500 $26,400 Indirect materials $49,000 $53,500 Maintenance on trucks used for delivering products to customers $12,500 $11,500 Maintenance on plant equipment $65,500 $67,000 Indirect manufacturing labor $343,500 $425,000 Customer service hotline $18,500 $21,300 Plant utilities $28,300 $29,300 Direct labor cost $68,000 $67,000 Calculate the underallocated or overallocated overhead. Enter as a positive number if it is overallocated

-73764

The Sit-N-Spin Corporation manufactures and assembles office chairs. Sit-N-Spin uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 30 separate parts totaling $125 in direct materials, and requires 6.0 hours of machine time to produce. Additional information follows: Activity Allocation Base Cost Allocation Rate Materials Handling Number of parts $4.25 per part Machining Machine hours $6.00 per machine hour Assembling Number of parts $5.50 per part Packaging Number of finished units $7.75 per finished unit What is the cost of materials handling per chair? A. $292.50 B. $46.50 C. $127.50 D. $165.00

127.50

Dairy Corp. provides the following selected cost and expense information for January. Assembly-line workers' wages $70,700 Caps for milk bottles $2,560 Salaries of star athletes used in promotion $99,000 Reconfiguring the assembly line $125,000 Customer support hotline $10,000 Salaries of salespeople $66,000 Delivery (to customer) expenses $20,000 Maintenance on factory equipment $75,000 Plastic milk bottles $52,000 Billboard advertisements $7,000 What is the total cost for the marketing category of the value chain? $172,000. $182,000. $106,000. $73,000.

172,000

Holland Corporation, Inc. is a manufacturing company that specializes in containers for sending tulip bulbs to overseas customers. The following data pertain to the company from its most recent fiscal year: Direct materials inventory, beginning $26,000 Work-in-process inventory, beginning $36,000 Direct materials inventory, ending $32,000 Work-in-process inventory, ending $28,000 Purchases of direct materials $76,000 Direct labor $83,000 Insurance on plant $8,500 Maintenance on plant equipment $12,900 Repairs and maintenance - plant $4,000 Marketing expenses $60,000 General and administrative expenses $26,500 What are the total manufacturing costs for this year? $70,000. $223,400. $106,500. $178,400.

178,400

Menominee Corporation had estimated overhead of $210,000 for the year. Here are the selected actual data for the year: Factory maintenance $56,000 Factory utilities $30,750 Indirect labor $22,400 Prime cost $24,000 Sales commissions $53,700 Factory rent $47,700 Factory property taxes $28,100 Menominee Corporation ended the year with under-allocated overhead of $3,500. What is the amount of allocated overhead for the year? $181,450. $188,450. $206,500. $213,500

181,450

Emmet Corporation, a manufacturer of solar powered skateboards. Sam asks you to draft financial statements for the fiscal year ended January 31, 2018. The accounting records are as follows: Raw materials inventory was $78,500 as of January 31, 2017 and $53,790 as of January 31, 2018. Work-in-process inventory was $205,000 as of January 31, 2017 and $287,000 as of January 31, 2018. Finished goods inventory was $188,000 as of January 31, 2017 and $69,000 as of January 31, 2018. Factory maintenance expense $51,800 Plant manager salary $50,000 Maintenance on office building $44,500 Advertising expense $70,000 Sales revenue $1,203,000 Direct labor wages expense $220,000 Raw materials purchases $541,400 Rent on office building $148,350 Supplies for factory $24,000 What is Emmet's gross margin percentage for the year ended January 31, 2018? State with three decimal places (not two); e.g., .37545 would be entered as 37.545

21.121

Emmet Corporation, a manufacturer of solar powered skateboards. Sam asks you to draft financial statements for the fiscal year ended January 31, 2018. The accounting records are as follows: Raw materials inventory was $78,500 as of January 31, 2017 and $53,790 as of January 31, 2018. Work-in-process inventory was $205,000 as of January 31, 2017 and $287,000 as of January 31, 2018. Finished goods inventory was $188,000 as of January 31, 2017 and $69,000 as of January 31, 2018. Factory maintenance expense $51,800 Plant manager salary $50,000 Maintenance on office building $44,500 Advertising expense $70,000 Sales revenue $1,203,000 Direct labor wages expense $220,000 Raw materials purchases $541,400 Rent on office building $148,350 Supplies for factory $24,000 What is Emmet's SG&A expense for the year ended January 31, 2018?

262850

Margo's Marble Factory allocates overhead based on direct labor hours. Selected data for the most recent year are as follows: Estimated manufacturing overhead cost $260,000 Actual manufacturing overhead cost $244,000 Estimated machine hours 20,000 Estimated direct labor hours 15,000 Actual machine hours 24,000 Actual direct labor hours 22,000 The estimates were made as of the beginning of the year, while the actual results were for the entire year. Using the predetermined manufacturing overhead rate, the allocated overhead for the year is closest to: $260,000. $381,333. $351,000. $379,333.

381,333

he sales price of a cell phone protective case is $17. The company plans to sell 6,500 cases. The variable costs are $6.50 per case and monthly fixed costs are $112,000. Given this information what is the company's total variable cost? $110,500. $154,250. $112,000. $42,250.

42,250

Gravity, Inc. produces chargers for electronic devices that store power in gloves that you wear while outdoors (in a sunny state). The company allocates manufacturing overhead based on the machine hours each job uses. Last year the company's budgeted and actual (incurred) costs were as follows: Budget Actual Direct labor hours 7,300 6,500 Machine hours 6,600 6,800 Maintenance on salespeople's autos $25,500 $26,400 Indirect materials $49,000 $53,500 Maintenance on trucks used for delivering products to customers $12,500 $11,500 Maintenance on plant equipment $65,500 $67,000 Indirect manufacturing labor $343,500 $425,000 Customer service hotline $18,500 $21,300 Plant utilities $28,300 $29,300 Direct labor cost $68,000 $67,000 If Cost of Goods Sold was $350,000, then what is the adjusted Cost of Good Sold (taking into account the under or overallocated overhead)?

423764

Alexander Inc. uses activity-based costing. The company produces two products: Snaps and Pops. The expected annual production of Snaps is 1,800 units, while the expected annual production of Pops is 2,500 units. There are three activity cost pools: Assembly, Testing, and Packing. The estimated costs and activities for each of these three activity pools follows: Activity cost pool Estimated cost Snaps Pops Total Assembly $5,948 620 100 720 Testing $26,115 1050 600 1650 Packing $2,801 50 185 235 The overhead cost per unit of Pops would be closest to (Round all answers to two decimal places.) A. $7.31 B. $11.51 C. $5.01 D. $8.16

5.01

Gravity, Inc. produces chargers for electronic devices that store power in gloves that you wear while outdoors (in a sunny state). The company allocates manufacturing overhead based on the machine hours each job uses. Last year the company's budgeted and actual (incurred) costs were as follows: Budget Actual Direct labor hours 7,300 6,500 Machine hours 6,600 6,800 Maintenance on salespeople's autos $25,500 $26,400 Indirect materials $49,000 $53,500 Maintenance on trucks used for delivering products to customers $12,500 $11,500 Maintenance on plant equipment $65,500 $67,000 Indirect manufacturing labor $343,500 $425,000 Customer service hotline $18,500 $21,300 Plant utilities $28,300 $29,300 Direct labor cost $68,000 $67,000 Calculate the allocated overhead for the past year

501036

Emmet Corporation, a manufacturer of solar powered skateboards. Sam asks you to draft financial statements for the fiscal year ended January 31, 2018. The accounting records are as follows: Raw materials inventory was $78,500 as of January 31, 2017 and $53,790 as of January 31, 2018. Work-in-process inventory was $205,000 as of January 31, 2017 and $287,000 as of January 31, 2018. Finished goods inventory was $188,000 as of January 31, 2017 and $69,000 as of January 31, 2018. Factory maintenance expense $51,800 Plant manager salary $50,000 Maintenance on office building $44,500 Advertising expense $70,000 Sales revenue $1,203,000 Direct labor wages expense $220,000 Raw materials purchases $541,400 Rent on office building $148,350 Supplies for factory $24,000 What if there was an error in counting raw materials ending inventory and the correct amount as of January 31, 2018 should have been $0. If the error is not corrected, what is the amount by which net operating income is over- or under-stated? Enter an overstatement as a positive number and an understatement as a negative number.

53790

Sam Song is the CEO of the Emmet Corporation, a manufacturer of solar powered skateboards. Sam asks you to draft financial statements for the fiscal year ended January 31, 2018. The accounting records are as follows: Raw materials inventory was $78,500 as of January 31, 2017 and $53,790 as of January 31, 2018. Work-in-process inventory was $205,000 as of January 31, 2017 and $287,000 as of January 31, 2018. Finished goods inventory was $188,000 as of January 31, 2017 and $69,000 as of January 31, 2018. Factory maintenance expense $51,800 Plant manager salary $50,000 Maintenance on office building $44,500 Advertising expense $70,000 Sales revenue $1,203,000 Direct labor wages expense $220,000 Raw materials purchases $541,400 Rent on office building $148,350 Supplies for factory $24,000 What is Emmet's direct materials used for the year ended January 31, 2018?

566110

Gravity, Inc. produces chargers for electronic devices that store power in gloves that you wear while outdoors (in a sunny state). The company allocates manufacturing overhead based on the machine hours each job uses. Last year the company's budgeted and actual (incurred) costs were as follows: Budget Actual Direct labor hours 7,300 6,500 Machine hours 6,600 6,800 Maintenance on salespeople's autos $25,500 $26,400 Indirect materials $49,000 $53,500 Maintenance on trucks used for delivering products to customers $12,500 $11,500 Maintenance on plant equipment $65,500 $67,000 Indirect manufacturing labor $343,500 $425,000 Customer service hotline $18,500 $21,300 Plant utilities $28,300 $29,300 Direct labor cost $68,000 $67,000 Calculate the predetermined manufacturing overhead rate. Carry the rate to four decimal places.

73.6818

Sam Song is the CEO of the Emmet Corporation, a manufacturer of solar powered skateboards. Sam asks you to draft financial statements for the fiscal year ended January 31, 2018. The accounting records are as follows: Raw materials inventory was $78,500 as of January 31, 2017 and $53,790 as of January 31, 2018. Work-in-process inventory was $205,000 as of January 31, 2017 and $287,000 as of January 31, 2018. Finished goods inventory was $188,000 as of January 31, 2017 and $69,000 as of January 31, 2018. Factory maintenance expense $51,800 Plant manager salary $50,000 Maintenance on office building $44,500 Advertising expense $70,000 Sales revenue $1,203,000 Direct labor wages expense $220,000 Raw materials purchases $541,400 Rent on office building $148,350 Supplies for factory $24,000 What is Emmet's cost of goods manufactured for the year ended January 31, 2018?

829910

Which of the following is not an example of an indirect cost incurred in manufacturing lawn mowers? Plant utilities Machinery maintenance in the factory. Plant supervisor's salary. Cost of mower engines.

Cost of mower engines.

The cost of warranty work is an example of what type of cost? A. Prevention cost B. External failure cost C Appraisal cost D. Internal failure cost Incorrect Internal failure cost

External failure cost