Managerial Account chapters 1 to 8
Contribution margin ratio = Contribution Margin / Sales Select one: True False
True
Generally, a business segment should be discontinued if the cost savings would exceed the revenue that would be lost. Select one: True False
True
If sales exceed production, then previous period costs will be released to the income statement and will decrease the level of absorption net income relative to variable net income. Select one: True False
True
Under absorption costing, a change in the level of production will affect the amount of fixed costs reported on the income statement for the period. Select one: True False
True
Scofield Company's budget for the coming year includes the following: Direct material $1,350,000 Indirect material 675,000 Direct labor (@ $20 per hour)2,250,000 Indirect labor 265,500 Factory depreciation1 680,000 Corporate general liability insurance 300,000 Factory utilities 228,000 Marketing expense 270,000 Other factory expenses: 154,500 If manufacturing overhead is assigned based on direct labor hours, what is the predetermined total overhead rate for the coming year?
$26.69 Budgeted overhead costs: Indirect material$675,000 Indirect labor265,500 Factory depreciation1,680,000 Factory utilities 228,000 Other factory expenses: 154,500 Total budgeted overhead = $3,003,000 Budgeted labor hours: Direct labor dollars$2,250,000/ Labor rate 20 = 112,500 3003000/112500 = $26.69
Fey Company has the following information: Variable production costs$14 per unit Fixed OH production costs$140,000 per year Variable selling & admin$7 per unit Fixed selling & admin.$112,000 per year Normal annual production20,000 units Budgeted annual production19,000 units Actual annual production15,000 units Actual annual sales19,000 units Beginning inventory5,000 units The company uses the FIFO inventory method. Over- and under-applied overhead is closed directly to cost of goods sold. If income under absorption costing for the year is $140,000, what was the net income under the variable costing method assuming that overhead was applied to production using a rate based on normal production? Select one: a. $168,000 b. $140,000 c. $245,000 d. $112,000
168,000
Number the following activities from 1 to 5 in the order corresponding to the typical flow of cost in a manufacturing company:
2. Record the transfer of raw materials into production. 5. Record cost of goods sold. 4. Record the completion of production of inventory. 3. Record the application of manufacturing overhead. 1. Record the purchase of raw materials.
Approximately what percentage of accountants who begin their careers in public accounting will leave for positions in businesses and corporations? 50% 75% 90% 95%
90%
Andy's Water Pets Inc. makes 100-gallon plexiglass aquariums. They reported the following financial information for last year: Direct labor:3,000 hours @ $20 per hr. Production manager salary:$25,000 Factory rent:$12,000 Equipment maintenance:$5,000 (considered a variable expense) Equipment depreciation:$5,000 Production for the year:12,000 units Total Revenue:$500,000 Total aquariums sold during the period:15,000 units Operating Income under variable costing (after non-production expenses):$102,000 Assume that the fixed costs were the same on a per-unit basis during the prior period. What would Operating Income be under absorption costing? (Round per-unit costs to the nearest cent.) Select one: a. None of these options are correct. b. $90,255 c. $113,745 d. $91,500 e. $112,500
91,500
Cost of Goods Sold can be calculated in the following manner: Select one: A. Beginning Finished Goods + Cost of Goods Manufactured - Ending Finished Goods B. Ending Materials Inventory + Ending Work in Process + Ending Finished Goods C. Beginning Work in Process + Cost of Goods Manufactured - Ending Work in Process D. Ending Finished Goods - Beginning Finished Goods - Manufacturing Overhead
A. Beginning Finished Goods + Cost of Goods Manufactured - Ending Finished Goods
In SWOT analysis, Threats are factors that are: Select one: A. External and Harmful B. Internal and Harmful C. External and Helpful D. Internal and Helpful
A. External and Harmful
Which of the following is an example of a manufacturing firm? Select one: A. General Motors B. Caleb's Carpet Cleaning Company C. Walmart D. Starbucks
A. General Motors
What is the correct order of the flow of product costs through the inventory system? Select one: A. Materials Inventory, Work in Process, Finished Goods, Cost of Goods Sold B. Work in Process, Finished Goods, Materials Inventory, Cost of Goods Sold C. Materials Inventory, Work in Process, Cost of Goods Sold, Finished Goods D. Cost of Goods Sold, Work in Process, Materials Inventory, Finished Goods
A. Materials Inventory, Work in Process, Finished Goods, Cost of Goods Sold
Which of the following is not a proficiency indicated by the CMA designation? Select one: A. Tax preparation B. Decision support C. Financial planning D. Professional ethics
A. Tax preparation
Which of the following would not possibly be a constraining resource for a company? Select one: A. Temporary labor B. Machine hours C. Floor space D. Supervisor hours E. None of the above would be constraining resources
A. Temporary labor
Which of the following equations describes the contribution margin ratio? Select one: A. (Variable Costs - Fixed Costs) / Sales B. (Sales - Variable Costs) / Sales C. (Variable Costs - Sales) / Sales D. (Sales - Fixed Costs) / Sales E. None of the above
B. (Sales - Variable Costs) / Sales
Which of the following utilizes multiple automated machines and manufacturing cells to produce a product from start to finish? Select one: A. Stand-alone automation B. Flexible-manufacturing system automation C. Full-production automation D. Robotics-controlled automated manufacturing
B. Flexible-manufacturing system automation
Which of the following is an example of a type of company that would likely prefer a process costing system? A. Carpet cleaning B. Oil refining C. Home building D. Financial statement auditing
B. Oil refining
Future benefits foregone when one option is chosen over another are called: Select one: A. Decision Costs B. Opportunity Costs C. Relevant Costs D. Sunk Costs E. None of the above
B. Opportunity Costs
Which method of cost data analysis employs a plot of data points, drawing a line to find an approximate "best visual fit"? Select one: A. High-low method B. Scattergraph method C. Least-squares regression method D. All of the above E. None of the above
B. Scattergraph method
Which of the following budgets flows directly into the Budgeted Income Statement? Select one: A. Capital expenditures budget B. Selling and administrative budget C. Budgeted balance sheet D. Production budget E. All of the above flow directly into the Budgeted Income Statement
B. Selling and administrative budget
The equation to find contribution margin under absorption costing is: Select one: A. Sales - Fixed Costs B. Gross Profit + Fixed Costs C. Absorption costing does not calculate Contribution Margin D. Sales - Variable Costs - Fixed Costs E. Sales - Variable Costs
C. Absorption costing does not calculate Contribution Margin
Which of the following lists the materials necessary to complete a job? Select one: A. Job order cost sheet B. Materials requisition C. Bill of materials D. Production order
C. Bill of materials
If production increases within a given range, fixed costs per unit will: A. Increase B. Stay constant C. Decrease D. Vary depending on the source of the fixed costs E. None of the above
C. Decrease
Which of the following are not advantages of budgeting? Select one: A. It helps a company achieve their long-range goals. B. It can be used for performance evaluation. C. It gives greater control to lower management and lets each department define their own objectives. D. It helps management to get out of just doing things the same way and notice what can be improved. E. None of the above are advantages of budgeting.
C. It gives greater control to lower management and lets each department define their own objectives.
Which of the following statements best explains the concept of "relevant range"? Select one: A. All costs behave in the same manner, regardless of the level of production. B. Over a large enough range of production, all costs are generally considered fixed. C. Management focuses mainly on how costs behave within the levels of production that are reasonably likely to occur. D. Over a small enough range of production, all costs are generally considered variable. E. All of the above
C. Management focuses mainly on how costs behave within the levels of production that are reasonably likely to occur.
Which of the following is/are assumptions of CVP analysis? Select one: A. Costs behave differently given different levels of production. B. The sales mix ratio (for multiple products) can change. C. Sales price will remain the same regardless of the level of sales. D. All costs are variable in the relevant range. E. All of the above
C. Sales price will remain the same regardless of the level of sales.
What type of firm is EBC? Select one: A. Manufacturing firm B. Merchandising firm C. Service firm D. Two of the above E. None of the above
C. Service firm
EBC specializes in consulting all of the following organizations except: Select one: A. City governments B. Special districts C. State governments D. County governments
C. State governments
Accumulating cost information on a per-unit basis is useful for making management decisions in companies such as: Select one: A. Manufacturers B. Hospitals C. Insurance companies D. A, B, and C E. None of the above
D. A, B, and C
Which of the following costs are always transferred out of the last Work in Process account at the end of the period under a FIFO process costing system? Select one: A. All costs associated with beginning inventory B. All costs associated with ending inventory C. All costs incurred this period D. All costs associated with items that were transferred out this period E. None of the above
D. All costs associated with items that were transferred out this period
Which of the following are not included in the Work in Process Inventory? Select one: A. Direct Materials that have been put into production B. Direct Labor incurred in production C. Manufacturing Overhead allocated to units of production D. All of the above are included in Work in Process Inventory
D. All of the above are included in Work in Process Inventory
Which of the following is an example of a manufacturing firm? Select one: A. Walmart B. Starbucks C. Caleb's Carpet Cleaning Company D. General Motors
D. General Motors
Which of the following factors would lead a company to make a component rather than buy it? Select one: A. Other, more profitable uses for production equipment B. Concerns that the company is too highly invested in fixed assets C. Attractive deals offered by suppliers D. Greater control over production quality E. All of the above
D. Greater control over production quality
In SWOT analysis, Strengths are factors that are: Select one: A. External and Helpful B. Internal and Harmful C. External and Harmful D. Internal and Helpful
D. Internal and Helpful
Which of the following is not a disadvantage of using variable costing as opposed to absorption costing? Select one: A. Variable accounting records do not conform to GAAP, so two sets of records must be maintained if the company is required to file their statements publicly. B. Owners' Equity tends to be understated. C. Accounting records are more costly to maintain. D. Only variable costs are assigned to inventory, making poor management decisions (such as dropping a profitable product line) more likely to occur. E. None of the above are disadvantages.
D. Only variable costs are assigned to inventory, making poor management decisions (such as dropping a profitable product line) more likely to occur.
Which of the following items are determined based on the per-unit cost that is calculated using equivalent units of production? A. Ending Work in Process Inventory B. Cost of Goods transferred out of the department C. Costs incurred during the period D. All of the above E. A and C only
E. A and C only
Management Accountants provide information that is: A. Timely B. Relevant C. Useful for making decisions D. Easily accessible to management E. All of the above
E. All of the above
Management Accountants provide information that is: Select one: A. Timely B. Relevant C. Useful for making decisions D. Easily accessible to management E. All of the above
E. All of the above
Which of the following is not a role that can be filled by someone with an accounting degree? Select one: A. Treasurer B. Internal auditor C. Budget analyst D. Chief Financial Officer E. All of the above are roles that are filled by accountants.
E. All of the above are roles that are filled by accountants.
When choosing an activity basis to measure in conducting cost behavior analysis, which of the following statements is not true? Select one: A. There should be a logical causal relationship between the cost and the driver. B. The quantities of the driver and the costs should be highly correlated. C. The cost of measuring the driver should not outweigh the benefit it provides. D. A cost-volume graph may be useful in identifying an activity base. E. All of the above are true.
E. All of the above are true.
Which of the following is/are included in the journal entry(ies) to record manufacturing overhead costs? Select one: A. DEBIT to Manufacturing Overhead B. DEBIT to Work in Process Inventory C. CREDIT to Wages Payable D. CREDIT to Cash E. All of the above except B.
E. All of the above except B
Which of the following statements is false regarding process costing? A. All costs must be assigned to individual jobs or production runs B. All products must follow the same path through production to reach Finished Goods Inventory C. The products in a single batch may differ from each other D. A company must use the weighted average cost-flow assumption in tracking the ending balance in each Work in Process Inventory account E. All of these statements are false.
E. All of these statements are false.
Which of the following types of production would most likely use job-order costing? Select one: A. Farming B. Construction of custom homes C. Manufacturing of heavy-duty machinery D. Electrical power generation E. Both B and C
E. Both B and C
In a job order costing system: Select one: A. Each department accumulates costs and then allocates them to all units produced. B. The processes involved in manufacturing products are essentially identical for all products. C. Production generally happens in a "continual flow". D. The end products are relatively homogenous. E. None of the above
E. None of the above
Which of the following is a cost incurred by or allocated to service departments? Select one: A. Direct Materials B. Direct Labor C. Manufacturing Overhead (allocated based on a predetermined rate) D. Selling Expenses E. None of the above are service department costs
E. None of the above are service department costs.
Which of the following organizations administers the CPA exam? Select one: A. The Federal Accounting Standards Board (FASB) B. The Institute of Management Accountants (IMA) C. The Internal Revenue Service (IRS) D. The Securities and Exchange Commission (SEC) E. The American Institute of Certified Public Accountants (AICPA)
E. The American Institute of Certified Public Accountants (AICPA)
Cost accounting concepts and procedures are only useful in product manufacturing entities.
False
Cost of goods manufactured = Ending Work in Process + Beginning Work in Process - Total Manufacturing Costs. Select one: True False
False
If incremental revenues exceed incremental costs, then a company should always accept a special order. Select one: True False
False
In process costing, all product costs are accumulated in a single Work in Process account until the goods have passed through all production departments; the costs are then transferred to Finished Goods. Select one: True False
False
It is not necessary to track the various product costs separately in a production process because costs are generally incurred uniformly. Select one: True False
False
Managerial accounting is primarily concerned with providing information to external users, while financial accounting is used for internal decision making. Select one: True False
False
Manufacturing firms and merchandising firms generally include all the same expenses as product costs. Select one: True False
False
Service departments are those parts of a business that are not connected with production, such as Sales, Finance, or Customer Service. Select one: True False
False
The CMA does not indicate a level of true professional achievement. Select one: True False
False
Which of the following group of terms best describes the role of managerial accounting? Internal decision-making, future-focused Internal decision-making, past-focused External reporting, future-focused External reporting, past-focused
Internal decision-making, future-focused
Prime Cost and Conversion Cost Piper Consulting Company incurred the following: Direct labor $45,000 Overhead $90,000 Selling expenses $40,000 Administrative expenses $100,000 Calculate prime cost and conversion cost for Piper Consulting Company.
Prime cost = $45,000 direct labor = $45,000 Conversion Cost = $45,000 direct labor + $90,000 overhead = $135,000
DeValle Company's trial balance includes the following expenses: Raw materials used in production: $12,100 Raw materials purchased: $14,300 General manager salary110,000 Sales manager salary: $66,000 Direct labor incurred: 286,000 General liability insurance premium: $6,600 Factory rent 52,800 Office lease39,600 Factory utilities26,400 Depreciation on factory equipment: $30,800 Assuming no change in the work in process and finished goods inventory balances for the year, what total amount should Devalle report as a product expense? Select one: a. $408,100 b. $520,300 c. $377,300 d. $410,300
Raw materials used in production: $12,100 Direct labor incurred 286,000 Factory rent: 52,800 Factory utilities: 26,400 Depreciation on factory equipment: $30,800 A. $408,100
Staff auditor salaries: Receptionist salary: Depreciation on staff auditor: Health insurance for administrative staff: Subscription to Cloud back-up service: Office lease expense: Travel to client location:
Staff auditor salaries: Product, Fixed, Direct Receptionist salary: Period, Fixed, Indirect Depreciation on staff auditor laptops: Product, Fixed, Indirect Health insurance for administrative staff: Period, Fixed, Indirect Subscription to Cloud back-up service: Product, Variable, Indirect Office lease expense: Period or Product, Fixed, Indirect Travel to client location: Product, Variable, Direct
Absorption costing is required for reporting to which of the following groups? Select one: A. The SEC B. The IRS C. Senior Management D. A and B only E. A, B, and C
The correct answer is: A, B, and C
Which of the following entries correctly reflects the accumulation of Manufacturing Overhead? Select one: A.Manufacturing Overhead Cash B.Indirect Labor Manufacturing Overhead C.Manufacturing Overhead Accumulated Depreciation—Factory Equipment D.Manufacturing Overhead Materials Inventory E. A, C, and D
The correct answer is: A, C, and D Rationale: A is the entry to record payment for goods or services such as rent, utilities, etc. C is the entry to record Depreciation of manufacturing equipment. D is the entry to record the use of indirect materials. LO:: 4
A company should maximize the contribution margin per unit of constraining resource in order to maximize profits. Select one: True False
True
A departmental overhead rate is determined by dividing the estimated overhead associated with the department by the estimated utilization of the productive capacity of that department.
True
Lean manufacturing is designed to minimize the amount of time it takes for a product to flow through the production process. Select one: True False
True
Longer planning horizons are usually used in high-level strategic business planning. Select one: True False
True
Managerial Accounting provides information relevant to making decisions about the future performance of a company. Select one: True False
True
Of the various types of firms, accounting for the operations of a manufacturing firm is typically the most complex. Select one: True False
True
One of the disadvantages of variable costing is that it may lead management to underprice products, leading to loss of long-term profits. Select one: True False
True
Predetermined overhead rates are calculated by dividing estimates of total factory overhead cost in the upcoming accounting period (usually a year) by an estimated usage or capacity of some unit of related activity (such as direct labor hours).
True
The decision-making process in a business includes providing feedback from results of activities to help plan future activities. Select one: True False
True
The entry to record direct labor for a job includes a debit to Work in Process Inventory.
True
The first budget prepared is generally the Sales Budget. Select one: True False
True
Time clocks or time records are used to track the amount of time an employee spends on each individual job. Select one: True False
True
Variable net income differs from absorption net income because under absorption costing some fixed costs are retained in inventory rather than being expensed. Select one: True False
True
While fixed costs remain constant over the relevant range, most fixed costs can change in the long run, and are often best described by a step cost pattern, given a sufficiently long horizon. Select one: True False
True
Working capital tends to be lower under variable net income than under absorption net income. Select one: True False
True
Neville's Pillow Store sells pillows with a sales price of $25.00 each. Each pillow costs the company $17.00 to produce, and the store incurs a total of $110,000 in fixed costs each year. What is the yearly breakeven point in units? Select one: a. 13,750 pillows b. 4,400 pillows c. 6,471 pillows d. 20,625 pillows e. None of these options are correct.
a. 13,750 pillows
Lean manufacturing is: Select one: a. A process whereby a product was "pulled" through the process by demand from the subsequent step in the process b. A process in which materials are received just in time to be placed into production c. A process whereby a business hires or contracts with another business to provide a product or service that had previously been provided within the business d. A process that incorporates a robot or computer-controlled machine into an existing manufacturing process to perform a single function
a. A process whereby a product was "pulled" through the process by demand from the subsequent step in the process
Christensen Mfg. produces leather strips for use in making bridles for horses. It normally sells 12,000 feet of one inch strips annually for $115,200. Variable costs for the leather strips are as follows: Direct material$28,800 Direct labor64,000 Variable manufacturing overhead19,200 Christensen is currently using 80% of its normal capacity. Christensen is considering using the other 20% to process the leather further and produce its own finished bridles. Each bridle would use 10 feet of leather strip. Christensen estimates that it could sell the finished bridles for $128. Christensen would incur additional material and labor costs of $16 per bridle and additional variable overhead costs of $6 per bridle. Additional equipment required would increase fixed overhead costs by $4,000 per yea a. $1,000 incremental income b. $1,000 incremental loss c. None of these options are correct.
b. $1,000 incremental loss
Assume Eames Company uses a process costing system based on the weighted average method. Eames' accountant produces the following equivalent unit calculations for the month of November: Also, assume that the beginning inventory had accumulated $31,000 of materials and $19,200 of conversion costs in the previous month. Finally, assume that during the month of November, the average cost per equivalent unit of materials and conversion costs were $7.52 and $9.78, respectively. Calculate the current costs incurred for conversion costs during the month of November. Select one: a. $50,200 b. $386,670 c. $425,070 d. $60,700 e. None of the amounts listed.
b. $386,670
Using the following budget data for Sunrise Corporation, which produces only one product, calculate the company's predetermined manufacturing overhead application rate for variable overhead. Hint: The factory supervisor's salary is direct labor since it is incurred regardless of production. SG&A expenses relate to the entire operations of Valley Corporation and not just related to manufacturing. Units to be produced 11,000 Units to be sold 10,000 Indirect materials, varying with production$2,000 Indirect labor, varying with production$20,000 Factory supervisor's salary, incurred regardless of production$40,000 Depreciation on factory building and equipment$60,000 Utilities to operate factory machines$24,000 Security lighting for factory$4,000 Selling, general and administrative (SG&A) expenses$10,000 Select one: a. $4.60 b. $4.18 c. $10 d. $9.46
b. $4.18
The following information summarizes the activities in the Sewing Department for the month of August. Beginning inventory: 16,000 units, 70% complete Started and completed: 136,000 units Ending inventory: 32,000 units, 40% complete Material is added at the beginning of the process, and conversion costs are incurred evenly throughout the process. Calculate the equivalent units of production with respect to conversion costs during the month of August, using the FIFO method. Select one: a. 148,800 b. 153,600 c. 130,000 d. 168,000 e. 172,000
b. 153,600
According to the AICPA, what portion of accounting graduates begin their careers in public accounting? Select one: a. Less than 25% b. Between 25% and 50% c. Between 50% and 75% d. More than 75%
b. Between 25% and 50%
Which of the following would be considered a mixed cost? Select one: a. Depreciation on a building b. Mobile phone charges that include a monthly subscription fee and a charge for minutes of use c. Wages paid to hourly workers d. None of the above
b. Mobile phone charges that include a monthly subscription fee and a charge for minutes of use
Which of the following would be considered product costs? Select one: a. Advertising expense for a new automobile b. Wages for workers on the automobile factory assembly line c. General liability insurance premiums for automobile company d. Commissions for automobile sales employees
b. Wages for workers on the automobile factory assembly line
Job number 2288 had the following data: Direct Labor hours used396 Supplies used$750 Hourly wage rate$15per hour Overhead allocation rate$6per direct labor hour Assuming this was the only job completed this month, what was the total cost of Job 2288? Select one: a. $8,316 b. $5,940 c. $9,066 d. $6,690 e. None of the amounts listed
c. $9,066
If a company's quarterly sales budget is for 75,000 units to be sold, its production budget is for 67,500 units to be produced, and its beginning inventory was 18,000 units, what is the company's projected ending inventory in units? Select one: a. 18,000 b. 25,500 c. 10,500 d. 7,500
c. 10,500
Teton Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Teton anticipates the following sales volumes:Daytripper: 4,000 backpacks in July, 4,400 backpacks in AugustExcursion: 2,400 backpacks in July, 1,800 backpacks in August Teton's policy is to maintain ending inventories at 5% of what is expected for the next month. What is the budgeted level of production in July for both styles? Select one: a. None of these options are correct. b. 4,420 Daytripper backpacks and 1,770 Excursion backpacks c. 4,020 Daytripper backpacks and 2,370 Excursion backpacks d. 3,980 Daytripper backpacks and 2,430 Excursion backpacks e. 4,000 Daytripper backpacks and 2,400 Excursion backpacks
c. 4,020 Daytripper backpacks and 2,370 Excursion backpacks
What is one of the main differences between managerial and financial accounting? a. Managerial is focused on past results; financial is focused on future plans. b. Managerial is focused on external decision-making; financial on internal decision-making. c. Managerial is focused on future plans; financial is focused on past results. d. Managerial accountants follow a set of accounting standards; financial accountants follow rules established by senior financial management.
c. Managerial is focused on future plans; financial is focused on past results.
A company that reports only work-in-process inventory is most likely a: Select one: a. Manufacturer b. Retailer c. Service company d. None of the above
c. Service company
What type of company is Environmental Business Consultants (EBC), introduced in Chapter 1? Select one: a. Manufacturer b. Merchandiser c. Service firm
c. Service firm
If production increases within a given range, variable costs per unit will Select one: a. Decrease b. Increase c. Stay constant d. None of the above
c. Stay constant
The following information summarizes the activities in the Sewing Department for the month of October. Beginning inventory: 17,600 units, 70% complete Started and completed149,600 units Ending inventory: 35,200 units, 40% complete Material is added at the beginning of the process, and conversion costs are incurred evenly throughout the process. Calculate the equivalent units of production with respect to materials during the month of October, using the weighted average method. Select one: a. 181,280 b. 209,000 c. 211,200 d. 202,400 e. 184,800
d. 202,400
Jensen Corporation produces a part for use in the production of one of its products. The per-unit costs associated with the annual production of 1,000 units of this part are as follows: Direct materials$15.75 Direct labor$36.00 Variable factory overhead$8.25 Fixed factory overhead$18.00 Total costs$78.00 $7,500 of the fixed factory overhead costs associated with the production of this product are common fixed costs. Wells Company has offered to sell 1,000 units of the same part to Jensen Corporation for $63 per unit. Jensen should: Select one: a. Buy the part, because this would save $15.00 per unit. b. Make the part, because this would save the company $7,500 annually. c. Make the part, because this would save $3.00 per unit. d. Buy the part, because this would save the company $7,500 annually.
d. Buy the part, because this would save the company $7,500 annually.
Quincy Manufacturing, Inc. makes kitchen appliance replacement parts. In May, Quincy produced 2,000 units. Costs incurred were as follows: Direct Labor per unit ( 2 hrs. @ $30 per hour)$60 Direct Materials per unit$10 Indirect Labor (maintenance)$5,000 Indirect Materials (total used): $600 Manufacturing Overhead application rate (per unit)$2 Given this data, the per-unit Conversion Cost for the month of May was: Select one: a. $12 b. $72 c. $30 d. $70 e. $62
e. $62 Conversion cost per unitTotalDirect labor $60 Manufacturing Overhead $2 $62
Calegari Corporation makes cleaning products in two sequential departments, Mixing and Packaging. Materials are added at the beginning of the process in the Mixing Department. Conversion costs are added evenly throughout each process. Calegari uses the weighted average method of process costing. In the Mixing Department for the month of May, the beginning work in process was 6,000 pounds ( 70% processed), 70,000 pounds were transferred out, and ending work in process was 60% processed. Assume that during May, the equivalent units of production with respect to materials is 80,000, and the equivalent units of production with respect to conversion costs is 76,000. How many pounds were started in the Mixing process during May? Select one: a. 64,000 b. 70,000 c. 52,000 d. 80,000 e. 74,000
e. 74,000
Which of the following is NOT a cost incurred by or allocated to service departments? Select one: a. Direct Materials b. Direct Labor c. Manufacturing Overhead (allocated based on a predetermined rate) d. Selling Expenses e. None of the above are service department costs
e. None of the above are service department costs
Using estimates of miles driven based on past customer service records, an auto repair shop sends customers reminders of services due to be performed. This is an example of customer profitablilty analysis factory automation predictive analytics corporate sustainability
predictive analytics