Managerial Accounting Final

Minist Corporation sells a single product for $15 per unit. Last year, the company's sales revenue was $225,000 and its net operating income was $18,000. If fixed expenses totaled $72,000 for the year, the break-even point in unit sales was:

$12,000

Ohme Framing's cost formula for its supplies cost is $1,620 per month plus $13 per frame. For the month of April, the company planned for activity of 882 frames, but the actual level of activity was 878 frames. The actual supplies cost for the month was $13,500. The supplies cost in the flexible budget for April would be closest to:

$13,034

What is the overhead cost assigned to Product U1 under activity-based costing?

$20,016

Poskey 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: How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool?

$217,000

Sekuterski Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $45,700 per month plus $2,892 per flight plus $4 per passenger. The company expected its activity in November to be 81 flights and 283 passengers, but the actual activity was 80 flights and 282 passengers. The actual cost for plane operating costs in November was $286,360. The plane operating costs in the flexible budget for November would be closest to:

$278,188

The activity rate for the Order Filling activity cost pool under activity-based costing is closest to:

$30.40 per order

At the volume of 8000 units, Pwerson Company incurred $32,000 in factory overhead costs, which includes $12,000 in fixed costs and $20,000 in variable costs. If volume increases to 9,000 units, then the company would expect to incur total factory overhead costs of:

$34,500

Laguna Corporation has provided the following data concerning its overhead costs for the coming year: The activity rate for the Order Processing activity cost pool is closest to:

$415 per order

The records of the Dodge Corporation show the following results for the most recent year: Given these data, the unit contribution margin was:

$6

Ros Corporation's flexible budget cost formula for indirect materials, a variable cost, is $0.90 per unit of output. If the company's performance report for last month shows a $500 unfavorable spending variance for indirect materials and if 8,000 units of output were produced last month, then the actual costs incurred for indirect materials for the month must have been:

$7,700

The total of the manufacturing overhead costs listed above for November is:

$77,000

Paradiso Medical Clinic measures its activity in terms of patient-visits Last month, the budgeted level of activity was 1,060 patient-visits and the actual level of activity was 1,050 patient-visits. The cost formula for administrative expenses is $3.00 per patient-visit plus $17,000 per month. The actual administrative expense was $19,300. In the clinic's flexible budget performance report for last month, the spending variance for administrative expenses was:

$850 F

Mondo Snow Removal's cost formula for its vehicle operating cost is $1,060 per month plus $429 per snow-day. For the month of January, the company planned for activity of 11 snow-days, but the actual level of activity was 13 snow-days. The actual vehicle operating cost for the month was $6,310. The activity variance for vehicle operating cost in January would be closest to:

$858 U

The standards for direct materials in making a certain product are 20 pounds at $0.75 per pound. During the past period, 56,000 units of product were made and the materials quantity variance was $30,000 U. The number pounds of direct material used during the period amounted to:

1,160,000

The Assembly Department started the month with 14,000 units in its beginning work in process inventory. An additional 296,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 14,000 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?

296,000

Mutskic Corporation produces and sells Product BetaC. To guard against stockouts, the company requires that 30% of the next month's sales be on hand at the end of each month. Budgeted sales of Product BetaC over the next four months are: Budgeted production for August would be:

83,000 units

Which of the following is used to apply overhead (with direct labor hours cost driver) to a job?

Actual direct labor hours x overhead rate

Which terms will make the following statement true? When manufacturing overhead is overapplied, ______ manufacturing over is ______ than actual manufacturing overhead.

Applied, greater

Inspection of products would be classified as an:

Appraisal cost

Setting up a machine to change from producing one product to another is an example of a:

Batch-level activity

Which of the following accounts is not found on the balance sheet?

Cost of goods sold

Under the _____ method of allocating service department costs, services provided by service departments to other service departments are ignored and all service department costs are allocated directly to the operating departments.

Direct

Which of the following comparisons best isolates the impact that changes in operating efficiency have on performance?

Flexible budget and actual results

The step-down method of allocating service department costs:

Ignores some interdepartmental services

Which of the following products is likely to be manufactured by a company using process costing?

M&M candies

Which of the following are needed to compute the cost per equivalent unit for materials under the weighed average method of process costing?

Material cost assigned to beginning work in process and material cost added to production during the current period

Which of the following is a direct cost for an automobile manufacturer?

Metal used to make car bodies

A major weakness of flexible budgets is that:

None of these is a major weakness of flexible budgets

Which of the following would probably be the most accurate measure of activity to use for allocating the costs associated with a factory's purchasing department?

Number of orders processed

Which of the following might be included as a disbursement on a cash budget?

Option C: No on Depreciation on factory equipment & Yes on Income taxes to be paid

Which of the following levels of costs should not be allocated to products for decision-making purposes?

Organization-sustaining activities

Factory utilities costs should be categorized as:

Overhead

Costs that flow directly to the current income statement are called

Period costs

A job order manufacturing system would be appropriate for a company that produces which of the following items?

Playbills used as programs for a regional production of the Broadway musical, Wicked, on the 16th of next month

The cost of quality training would be classified as a:

Prevention cost

Which of the following costing systems uses multiple work-in-process accounts?

Process costing

Indirect materials should be categorized as:

Product costs

Variable cost

Remains constant on a per unit basis as the number of units produced increases

The margin of safety is:

The excess of budgeted or actual sales over the break-even volume of sales

The variance that is usually most useful in assessing the performance of the purchasing department manager is:

The materials price variance

Which of the following is NOT a correct definition of the break-even point?

The point where total profit equals total fixed expenses

The direct labor budget is based on:

The required production for the period

In a job cost system, the balance in the Work in Process account represents

The sum of the balances of all the incomplete job cost sheets

Which of the following is NOT an objective of the budgeting process?

To ensure that the company continues to grow

An activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles because:

Under activity-based costing the sum of all product costs does not equal the total costs of the company

Variable manufacturing overhead is applied to products on the basis of standard direct labor-hours. If the labor efficiency variance is unfavorable, the variance overhead efficiency variance will be:

Unfavorable

Which of the following would produce a labor rate variance?

Use of persons with high hourly wage rates in tasks that call for low hourly wage rates

Hoppy Corporation compares monthly operating results to a static budget prepared at the beginning of the month. When the actual level of activity is less than budgeted, which of the following would be true?

Variable costs would show favorable variances

Which of the following costs is an example of a period rather than a product cost?

Wages of salespersons

In a job-order costing system, the cost of manufacturing overhead applied is ordinarily recognized in or added to

Work in Process Inventory