Accounting Final

A job was budgeted to require 3 hours of labor per unit at $8.00 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000. What is the direct labor efficiency variance? A.) $22,000 unfavorable B.) $16,000 favorable C.) $16,000 unfavorable D.) $6,000 unfavorable E.) $22,000 favorable

?

The Homer Corporation produces two products, and reports the following production and cost infomration for the most recent accounting period. See test for graph Test89-2 #33 A.) $120 per inspection B.) $240 per inspection C.) $100 per inspection D.) $80 per inspection E.) $60 per inspection

A.) $120 per inspection

Williams Company computed its cost per equivalent unit for direct materials to be $2.60 and its cost per equivalent unit for conversion to be $3.75. A total of 250,000 units of product were completed and transferred out as finished goods during the month. The ending Work in Process inventory consists of 36,000 equivalent units of direct materials and 36,000 equivalent units of conversion costs. The amount that should be reported in ending Work in Process Inventory is: A.) $228,600 B.) $1,816,100 C.) $93,600 D.) $1,587,500 E.) $135,000

A.) $228,600

Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 direct materials and $13,000 indirect materials. What is the ending Raw Materials Inventory balance for March? A.) $33,000 B.) $11,000 C.) $9,000 D.) $46,000 E.) $24,000

A.) $33,000

Founder Consulting Corporation has its headquarters in Memphis and operates from three branch offices in Nashville, Atlanta, and Louisville. Two of the company's activity cost pools are Administrative Service and Development Service. These costs are allocated to the three branch offices using an activity-based costing system. Information for next year follows. See test for graph Test89-2 #32 A.) $472,500 B.) $560,000 C.) $280,000 D.) $409,500 E.) $504,000

A.) $472,500

CakeCo, Inc. has three operating departments. Information about these departments is listed below. Maintenance is service department at CakeCo that incurred $12,000 of costs during the period. If allocated maintenance cost is based on floor space occupied by each of the operating departments, compute the amount of maintenance cost allocated to the Baking Department. See graph on Test90-3 A.) $6,000 B.) $400 C.) $1,200 D.) $7,500 E.) $4,000

A.) $6,000

If a firm's forecasted sales are $250,000 and its break-even sales are $190,000, the margin of safety in dollars is: A.) $60,000 B.) $190,000 C.) $24,000 D.) $440,000 E.) $250,000

A.) $60,000

A company's flexible budget for 12,000 units of production showed sales, $48,000; variable costs, $18,000; and fixed costs, $16,000. The operating income expected if the company produces and sells 16,000 units is: A.) $64,000 B.) $48,000 C.) $18,000 D.) $40,000 E.) $24,000

A.) $64,000

A company rents a building with a total of 50,000 square feet, which are evenly divided between two floors. The company allocates the rent for space on the first floor at twice the rate of space on the second floor. The total monthly rent for the building is $30,000. How much of the monthly rental expense should be allocated to a department that occupies 10,000 square feet on the first floor? A.) $8,000 B.) $3,000 C.) $5,000 D.) $2,000 E.) $4,000

A.) $8,000

A company reports basic earnings per share of $3.50, cash dividends per share of $1.25, and a market price per share of $64.75. The company's dividend yield equals: A.) 1.93% B.) 18.50% C.) 4.67% D.) 2.14% E.) 5.41%

A.) 1.93%

CWN Company uses a job order costing system and last period incurred $80,000 of actual overhead and $100,000 of direct labor. CWN estimates that its overhead next period will be $75,000. It also expects to incur $100,000 of direct labor. If CWN bases applied overhead on direct labor cost, its predtermiend overhead rate for the next period should be: A.) 75% B.) 133% C.) 125% D.) 107% E.) 80%

A.) 75%

Which of the following characteristics applies to process costing but not to job order cost accounting? A.) Equivalent units of production B.) Use of a single Work in Process Inventory account C.) Identifiable units of production D.) Use of predetermined overhead rate E.) Determining cost of goods manufactured

A.) Equivalent units of production

The cost of workers who assist in or supervise the manufacturing process, not linked to specific units of product is called: A.) Indirect labor B.) Direct labor C.) Joint labor D.) Basic labor E.) Unspecified labor

A.) Indirect labor

The appropriate section in the statement of cash flows for reporting the cash payment of wages is: A.) Operating activities B.) Schedule of noncash investing or financing activity. C.) This is not reported on the statement of cash flows. D.) Financing activities. E.) Investing activities.

A.) Operating activities

The difference between actual price per unit of input and the standard price per unit of input results in a: A.) Price variance B.) Standard variance C.) Controllable variance D.) Volume variance E.) Quantity variance

A.) Price variance

A job cost sheet shows information about each of the following items except: A.) The costs incurred by the marketing department in selling the job. B.) The name of the customer. C.) The overhead costs assigned to the job. D.) The direct labor costs assigned to the job. E.) The direct materials costs assigned to the job.

A.) The costs incurred by the marketing department in selling the job.

Which one of the following statements is not true? A.) Total variable costs decrease as the volume increases B.) Fixed costs per unit increase as the volume decreases C.) Total variable costs change with volume D.) Variable costs per unit remain the same regardless of volume within the relevant range.

A.) Total variable costs decrease as the volume increases.

If overhead applied is less than actual overhead incurred, it is: A.) Underapplied B.) Expected C.) Fully applied D.) Overapplied E.) Normal

A.) Underapplied

The ending inventory of finished goods has a total cost of $9,000 and consists of 600 units. If the overhead applied to these goods is $3,000, and the overhead rate is 75% of direct labor, how much direct materials cost was incurred in producing these units? A.) $3,750 B.) $2,000 C.) $9,000 D.) $4,000 E.) $6,000

B.) $2,000

. A company's income statement showed the following: net income, $124,000; depreciation expense, $30,000 and gain on sale of plant assets, $14,000. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased $18,000; prepaid expenses decreased $6,200; accounts payable increased $3,400. Calculate the net cash provided or used by operating activities. A.) $88,600 B.) $148,600 C.) $156,600 D.) $141,000 E.) $96,600

B.) $148,600

Activity rates from Hilliard Corporation's activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products: See Test89-2 #30 A.) $1,041.80 B.) $2,000.04 C.) $146.73 D.) $66,908.88 E.) $772.52

B.) $2,000.04

A manufacturing company has a beginning finished goods inventory of $14,600, raw materials purchases of $18,000, cost of goods manufactured of $32,500, and an ending finished goods inventory of $17,800. The cost of goods sold for this company is: A.) $21,200 B.) $29,300 C.) $27,600 D.) $32,500 E.) $47,100

B.) $29,300

Naples Corporation has provided the following data from its activity-based costing accounting system: See test for graph Test89-2#29 A.) $780,000 B.) $429,000 C.) $169,000 D.) $260,000 E.) $351,000

B.) $429,000

A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is: A.) $45,000 B.) $50,000 C.) $5,000 D.) Zero. This is a financing activity. E.) Zero. This is an operating activity.

B.) $50,000

Zhang Industries budgets production of 300 units in June and 310 units in July. Each unit requires 1.5 hours of direct labor. The direct labor rate if $14 per hour. The indirect labor rate is $21.00 per hour. Compute the budgeted direct labor cost for July. A.) $16,275 B.) $6,510 C.) $6.300 D.) $9,765 E.) $9,450

B.) $6,510

A company provided the following direct materials cost information. Compute the total direct materials cost variance. See graph on Test90-3 #8 A.) $80,750 Favorable B.) $78,250 Unfavorable C.) $78,250 Favorable D.) $2,500 Favorable E.) $80,750 Unfavorable

B.) $78,250 Unfavorable

A firm expects to sell 25,000 units of its product at $11 per unit. Pretax income is predicted to be $60,000. If the variable costs per unit are $5, total fixed costs must be: A.) $65,000 B.) $90,000 C.) $125,000 D.) $215,000 E.) $275,000

B.) $90,000

Rajan Company's most recent balance sheet reported total assets of $1.9 million, total liabilities of $0.8 million, and total equity of $1.1 million. Its Debt to equity ratio is: A.) 1.38 B.) 0.73 C.) 1.00 D.) 0.58 E.) 0.42

B.) 0.73

Flack Corporation, a merchandiser, provides the following information for its December budgeting process: See graph on Test90-3, #30 Budgeted Purchases are: A.) 1,240 units B.) 5,040 units C.) 4,000 units D.) 6,840 units E.) 5,800 units

B.) 5,040 units

The statement of cash flows is: A.) Another name for the statement of financial position. B.) A financial statement that reports the cash inflows and cash outflows for an accounting period, and that classifies those cash flows as operating activities, investing activities, and financing activities. C.) A financial statement that lists the types and amounts of assets, liabilities, and equity of a business on a specific date. D.) A financial statement that presents information about changes in equity during a period. E.) A financial statement that lists the types and amounts of the revenues and expenses of a business for an acocunting period.

B.) A financial statement that reports the cash inflows and cash outflows for an accounting period, and that classifies those cash flows as operating activities, investing activities, and financing activities.

The combined costs of direct labor and factory overhead per equivalent unit used by many businesses with process operations is called: A.) Physical cost per equivalent unit B.) Conversion cost per equivalent unit C.) Finished cost per equivalent unit D.) Overhead cost per equivalent unit E.) Combined cost per equivalent unit

B.) Conversion cost per equivalent unit

A job order costing system would best fit the needs of a company that makes: A.) Paint. B.) Custom machinery. C.) Pencils and erasers. D.) Cement. E.) Shoes and apparel.

B.) Custom machinery

Products that have been completed and are ready to be sold by the manufacturer are called: A.) Work in Process Inventory B.) Finished goods inventory C.) Factory supplies D.) Cost of goods sold E.) Raw materials inventory

B.) Finished goods inventory

Omega Contractors manufactures each house to customer specifications. It most likely would use: A.) Process costing. B.) Job order costing. C.) A periodic inventory system. D.) Activity-based costing. E.) Unique costing.

B.) Job order costing

A cost that includes both fixed and variable cost components is called a: A.) Curvilinear cost B.) Mixed cost C.) Composite cost D.) Step-variable cost E.) Differential cost

B.) Mixed cost

The rate established prior to the beginning of a period that relates estimated overhead to an allocation factor such as estimated direct labor, and that is used to assign overhead cost to jobs, is the: A.) Overhead variance rate B.) Predetermined overhead rate C.) Miscellaneous overhead rate D.) Chargeable overhead rate E.) Estimated labor cost rate

B.) Predetermined overhead rate

A process cost summary is a managerial accounting report that describes all but which of the following: A.) The costs charged to a department B.) The gross profit earned on the sale of products C.) The equivalent units of production by the department D.) Physical transfers for a department E.) How the costs were assigned to the output

B.) The gross profit earned on the sale of products

A direct cost is a cost that is: A.) Traceable to multiple cost objects. B.) Traceable to a single cost object. C.) Does not change with the volume of activity. D.) Traceable to the company as a whole. E.) Identifiable as controllable.

B.) Traceable to a single cost object.

The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $3,200 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $1,400 and direct labor cost of $800. Therefore, the amount of the applied overhead is: A.) $800 B.) $1,800 C.) $1,000 D.) $2,400 E.) $2,200

C.) $1,000

If one unit of Product Z2 used $2.50 of direct materials and $3.00 of direct labor, sold for $8.00, and was assigned overhead at the rate of 30% of direct labor costs, how much gross profit was realized from this sale? A.) $0.90 B.) $8.00 C.) $1.60 D.) $2.50 E.) $5.50

C.) $1.60

The Fabricating Department started the current month with a beginning Work in Process inventory of $10,000. During the month, it was assigned the following costs: direct materials, $76,000; direct labor, $24,000; and factory overhead, 50% of direct labor cost. Also, inventory with a cost of $109,000 was transferred out of the department to the next phase in the process. The ending balance of the Work in Process Inventory account for the Fabricating Department is: A.) $110,000 B.) $165,000 C.) $13,000 D.) $59,000 E.) $56,000

C.) $13,000

A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $9,000 indicates that Dept. Y had a direct expense of $1,000 for deliveries and Dept. Z had no direct expense. The indirect expenses are $8,000. The analysis also indicates that 40% of regular delivery requests originate in Dept. Y and 60% originate in Dept. Z. Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are: A.) $5,500; $3,500 B.) $4,500; $4,500 C.) $4,200; $4,800 D.) $4,800; $4,200 E.) $5,400; $3,600

C.) $4,200; $4,800

Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 25,000 units, 100% complete as to materials and 55% complete as to conversion. Units started and completed: 110,000. Units completed and transferred out: 135,000. Ending Inventory: 30,000 units, 100% complete as to materials and 30% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $43,000. Costs in beginning Work in Process - Conversion: $48,850. Costs incurred in February - Direct Materials: $287,000. Costs incurred in February - Conversion: $599,150. Calculate the cost per equivalent unit of conversion. A.) $5.45 B.) $4.98 C.) $4.50 D.) $4.16 E.) $4.60

C.) $4.50

During March, a firm expects in total sales to be $160,000, its total variable costs to be $95,000, and its total fixed costs to be $25,000. The contribution margin for March is: A.) $25,000 B.) $40,000 C.) $65,000 D.) $90,000 E.) $120,000

C.) $65,000

Zhang Industries sells a product for $700. Unit sales for May were 400 and each month's sales are expected to exceed the prior month's results by 3%. Zhang pays a sales manager a monthly salary of $3,000 and a commission of 2% sales. Compute the projected selling expense to be reported on the selling expense budget for the manager for month ended June 30. A.) $11,652 B.) $8,652 C.) $8,768 D.) $5,768 E.) $8,600

C.) $8,768

Use the following data to find the total direct labor cost variance if the company produced 3,500 units during the period. See graph on Test90-3 #23 A.) $12,250 favorable B.) $7,000 favorable C.) $6,125 unfavorable D.) $6,125 favorable E.) $7,000 unfavorable

D.) $6,125 favorable

During March, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of the units transferred, 25,000 were in process at the beginning of March and 110,000 were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to labor. At the end of March, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to labor. Compute the number of equivalent units with respect to both materials and direct labor respectively for March using the weighted-average method A.) 165,000 B.) 144,000 C.) 135,000 D.) 105,000 E.) 110,000

C.) 135,000

Two investment centers at Marshman Corporation have the following current-year income and asset data: See graph on Test90-3 #3 A.) 371.4% B.) 39.2% C.) 26.9% D.) 21.7% E.) 24.1%

C.) 26.9%

Use the following information to determine the contribution margin ratio: See graph on Test90-3 #27 A.) 51.7% B.) 24.5% C.) 48.3% D.) 34.1% E.) 6.9%

C.) 48.3%

At the beginning of the recent period, there were 900 units of product in a department, 35% completed. These units were finished and an additional 5,000 units were started and completed during the period. 800 units were still in process at the end of the period, 25% completed. Using the weighted average method, the equivalent units produced by the department were: A.) 5,500 units B.) 5,900 units C.) 6,100 units D.) 5,000 units E.) 6,700 units

C.) 6,100 units

If a company is using the indirect method to prepare the statement of cash flows, identify where an increase in the accounts receivable account should be reported: A.) An increase in cash flows from operating activities. B.) An increase in cash flows from financing activities. C.) A decrease in cash flows from operating activities. D.) An increase in cash flows from investing activities. E.) A decrease in cash flows from investing activities.

C.) A decrease in cash flows from operating activities

A system of assigning costs to departments and products on the basis of a variety of activities instead of only one allocation base is called: A.) Performance costing. B.) Controllable costing. C.) Activity-based costing. D.) Plantwide overhead costing. E.) A cost center accounting system.

C.) Activity-based costing.

Intra-company standards for financial statement analysis: A.) Are set by the company's industry through published statistics. B.) Are published by analyst services such as Standard & Poor's. C.) Are based on a company's prior performance and relations between its financial items. D.) Are often set by competitors. E.) Are based on rules of thumb.

C.) Are based on a company's prior performance and relations between its financial items.

Managerial accounting is different from financial accounting in that: A.) Managerial accounting never includes nonmonetary information. B.) Managerial accounting is used extensively by investors, whereas financial accounting is used only by creditors. C.) Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions. D.) Managerial accounting is mainly used to set stock price. E.) Managerial accounting is more focused on the organization as a whole and financial accounting is more focused on subdivisions of the organization

C.) Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions.

Activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as: A.) Financing activities B.) Direct activities C.) Operating activities D.) Indirect activities E.) Investing activities

C.) Operating activities

Goods a company acquires to use in making products are called: A.) Finished goods inventory B.) Conversion costs C.) Raw materials inventory D.) Cost of goods sold E.) Work in process inventory

C.) Raw materials inventory

Which department is often responsible for the direct materials price variance? A.) The production department. B.) The accounting department. C.) The purchasing department. D.) The budgeting department. E.) The finance department.

C.) The purchasing department

Analysis reveals that a company had a net increase of $20,000 for the current year. Net cash provided by operating activities was $18,000; net cash used in investing activities was $10,000 and net cash provided by financing activities was $12,000. If the year-end cash balance is $24,000, the beginning cash balance was: A.) $40,000 B.) $39,000 C.) $44,000 D.) $4,000 E.) $!6,000

D.) $4,000

Cameroon Corp. manufactures and sells electric staplers for $16 each. If 10,000 units were sold in December, and management forecasts 4% growth in sales each month, the dollar amount of electric stapler sales budgeted for February should be: A.) $160,000 B.) $166,400 C.) $179,056 D.) $173,056 E.) $187,177

D.) $173,056

Arial Company has two products: A and B. The company uses activity-based costing. The total cost and activity for each of the company's three activity cost pools are as follows: See test for graph Test89-2 #31 A.) $28.87 B.) $32.55 C.) $70.45 D.) $19.47 E.) $58.40

D.) $19.47

The following is taken from Jeffers Company's internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor costs, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of overhead allocated to Dept. 1 using activity-based costing. See test for graph Test89-2 #27 A.) $19,877 B.) $22,069 C.) $47,512 D.) $22,243 E.) $18,703

D.) $22,243

Watson Company has monthly fixed costs of $83,000 and a 40% contribution margin ratio. If the company has set a target monthly income of $15,000, what dollar amount of sales must be made to produce the target income? A.) $39,200 B.) $170,000 C.) $37,300 D.) $245,000 E.) $207,500

D.) $245,000

Georgia, Inc. has collected the following data on one of its products. The direct materials quantity variance is: See graph on Test90-3 #12 A.) $30,000 favorable B.) $13,750 unfavorable C.) $13,750 favorable D.) $30,000 unfavorable E.) $16,250 favorable

D.) $30,000 unfavorable

Zhang Company reported Cost of goods sold of $835,000, beginning Inventory of $37,200 and ending Inventory of $46,300. The average Inventory amount is: A.) $9,100 B.) $83,500 C.) $37,200 D.) $41,750 E.) $46,300

D.) $41,750

A production department's output for the most recent month consisted of 10,000 units completed and transferred to the next stage of production and 10,000 units in ending Work in Process inventory. The units in ending Work in Process inventory were 50% units beginning Work in Process inventory, and they were 70% complete with the respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method. A.) 10,700 units B.) 10,000 units C.) 10,300 units D.) 15,000 units E.) 15,300 units

D.) 15,000 units

Richards Corporation uses the weighted-average method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 80,000 units, 60% complete as to materials and 20% complete as to conversion. Units started and completed: 250,000. Units completed and transferred out: 330,000. Ending Inventory: 30,000 units, 40% complete as to materials and 10% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process - Conversion: $79,700. Costs incurred in October - Direct Materials: $646,800. Costs incurred in October - Conversion: $919,300. Calculate the equivalent units of materials. A.) 250,000 B.) 317,000 C.) 333,000 D.) 342,000 E.) 294,000

D.) 342,000

At the beginning of the month, the Forming Department of Martin Manufacturing had 10,000 units in inventory, 30% complete as to the materials, and 10% complete as to conversion. During the month the department started 60,000 units and transferred 62,000 units to the next manufacturing department. At the end of month, the department had 8,000 units in inventory, 80% complete as to materials and 60% complete as to conversion. How many units did the Forming Department start and complete in the current month? A.) 62,000 B.) 60,000 C.) 68,000 D.) 52,000 E.) 58,000

D.) 52,000

Masterson's Company's budgeted production calls for 56,000 liters in April and 52,000 liters in May of a key raw material that costs $1.85 per liter. Each month's ending raw materials inventory should equal 30% of the following month's budgeted materials. The April 1 inventory for this material is 16,800 liters. What is the budgeted materials need in liters for April? A.) 39,200 liters B.) 71,600 liters C.) 57,600 liters D.) 54,800 liters E.) 56,000 liters

D.) 54,800 liters

Western Company is preparing a cash budget for June. The company has $12,000 cash at the beginning of June and anticipates $30,000 in cash receipts and $34,500 in cash disbursements during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must: A.) Borrow $4,500 B.) Repay $7,500 C.) Repay $2,500 D.) Borrow $2,500 E.) Borrow $10,000

D.) Borrow $2,500

A formal statement of future plans, usually expressed in monetary terms, is a: A.) Variance analysis B.) Prospectus C.) Variance report D.) Budget E.) Position statement

D.) Budget

A factor that causes the cost of an activity to go up or down is a(n): A.) Indirect factor. B.) Direct factor. C.) Contribution factor. D.) Cost driver. E.) Product cost

D.) Cost driver

A job cost sheet includes: A.) Direct materials, direct labor, operating costs. B.) Direct materials, estimated overhead, administrative costs. C.) Direct materials, direct labor, selling costs. D.) Direct material, direct labor, applied overhead. E.) Direct labor, actual overhead, selling costs.

D.) Direct material, direct labor, applied overhead

A fixed cost: A.) Is directly traceable to a cost object. B.) Requires the future outlay of cash and is relevant for future decision making. C.) Changes with changes in the volume of activity within the relevant range. D.) Does not change with changes in the volume of activity within the relevant range. E.) Is irrelevant for cost-volume-profit and short-term decision making.

D.) Does not change with changes in the volume of activity within the relevant range

The appropriate section in the statement of cash flows for reporting the purchase of equipment for cash is: A.) Operating activities. B.) Financing activities. C.) This is not reported on the statement of cash flows. D.) Investing activities. E.) Schedule of noncash investing or financing activity.

D.) Investing activties

The type of department that generates revenues and incurs costs, and its manager is responsible for the investments made in operating assets is called a: A.) Cost center B.) Profit center C.) Service department D.) Investment center E.) Responsibility center

D.) Investment center

Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs to be $300,000, and direct labor costs to be $150,000. Actual overhead costs for the year totaled $330,000, and actual direct labor costs totaled $170,000. At year-end, Factory Overhead account is: A.) Overapplied by $20,000 B.) Underapplied by $10,000 C.) Neither overapplied nor underapplied D.) Overapplied by $10,000 E.) Ovevrapplied by $170,000

D.) Overapplied by $10,000

Which of the following must be prepared before the direct labor budget? A.) Budgeted income statement B.) Selling expense budget C.) Merchandise purchases budget D.) Production budget E.) Capital expenditures budget

D.) Production budget

A report that accumulates the actual expenses that a manager is responsible for and their budgeted amounts is a: A.) Controllable expense report B.) Departmental accounting report C.) Managerial cost report D.) Responsibility accounting performance report. E.) Segmental accounting report

D.) Responsibility accounting performance report.

In cost-volume-profit analysis, the unit contribution margin is: A.) Sales price per unit less cost of goods sold per unit. B.) Sales price per unit less unit total cost per unit. C.) Sales price per unit less unit fixed cost per unit. D.) Sales price per unit less total variable cost per unit. E.) The same as the contribution margin ratio.

D.) Sales price per unit less total variable cost per unit.

Period costs for a manufacturing company would flow directly to: A.) The current schedule of cost of goods manufactured B.) Factory overhead C.) Cost of goods sold on the income statement D.) The income statement as an expense E.) The balance sheet as inventory

D.) The income statement as an expense

Current assets minus current liabilities is: A.) Financial leverage B.) Profit margin C.) Current ratio D.) Working capital E.) Quick assets

D.) Working capital

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,500 of direct materials and used $4,000 of direct labor. The job was not finished by the end of the month, but needed an additional $3,000 of direct materials and additional direct labor of $6,500 to finish the job in October. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred. What is the balance in the Work in Process account at the end of September relative to Job A3B? A.) $9,500 B.) $6,500 C.) $5,500 D.) $11,500 E.) $14,500

E.) $14,500

Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Hassock's standard labor cost is $12 per hour. During August, Hassock produced 10,000 units and used 21,040 hours of direct labor at a total cost of $250,376. What is Hassock's labor rate variance for August? A.) $2,104 unfavorable B.) $2,000 favorable C.) $4,160 favorable D.) $2,000 favorable E.) $2,104 favorable

E.) $2,104 favorable

A retail store has three departments, S, T, and U, and does general advertising that benefits all departments. Advertising expense totaled $50,000 for the year, and departmental sales were as follows. Allocate advertising expense to Department T based on departmental sales. See graph on Test90-3, #29 A.) $16,667 B.) $14,000 C.) $50,000 D.) $11,000 E.) $22,500

E.) $22,500

A company has an overhead application rate of 125% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $20,000? A.) $125,000 B.) $250,000 C.) $16,000 D.) $5,000 E.) $25,000

E.) $25,000

Memphis Company's May sales budget calls for sales of $900,000. The store expects to begin May with $50,000 of inventory and to end the month with $55,000 of inventory. Gross margin is typically 45% of sales. Compute the budgeted cost of merchandise purchases for May. A.) $550,000 B.) $495,000 C.) $500,000 D.) $460,000 E.) $490,000

E.) $490,000

The B&T Company's production costs for May are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; property taxes on production equipment, $800; heat, lights and power, $1,000; and insurance on plant and equipment, $200. B&T Company's factory overhead incurred for May is: A.) $6,500 B.) $2,000 C.) $21,500 D.) $36,500 E.) $8,500

E.) $8,500

Locus Company has total fixed costs of $112,000. Its product sells for $35 per unit and variable costs amount to $25 per unit. Next year Locus Company wishes to earn a pretax income that equals 10% of fixed costs. How many units must be sold to achieve this target income level? A.) 14,080 B.) 11,200 C.) 1,120 D.) 8,214 E.) 12,320

E.) 12,320

Borden 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: See test for graph Test89-2 #28 How much overhead cost, in total, would be allocated to the Setting Up activity cost pool? A.) $155,000 B.) $217,000 C.) $206,000 D.) $279,000 E.) $194,000

E.) 194,000

Which of the following products is most likely to be produced in a process operations system? A.) Custom cabinets B.) Bridges C.) Designer bridal gowns D.) Airplanes E.) Cereal

E.) Cereal

Costs that the manager has the power to determine or at least significantly affect are called: A.) Direct costs B.) Joint costs C.) Indirect costs D.) Uncontrollable costs E.) Controllable costs

E.) Controllable costs

When preparing the cash budget, all of the following should be considered except: A.) Cash payments for capital expenditures B.) Cash payments for merchandise C.) Cash payments for income taxes D.) Cash receipts from customers E.) Depreciation expense

E.) Depreciation expense

An expense that is readily traced to a department because it is incurred for that department's sole benefit is a(n): A.) Common expense B.) Indirect expense C.) Administrative expense D.) Recurring expense E.) Direct expense

E.) Direct expense

In this type of control system, the master budget is based on a single prediction for sales volume, and the budgeted amount for each cost essentially assumes that a specific amount of sales will occur: A.) Sales budget B.) Variable budget C.) Flexible budget D.) Standard budget E.) Fixed budget

E.) Fixed budget

A cost that remains unchanged in total despite variations in volume of activity within a relevant range is a: A.) Variable cost B.) Step-wise variable cost C.) Standard cost D.) Curvilinear cost E.) Fixed cost.

E.) Fixed cost

A budget raised on several different levels of activity, often including both a best-case and worst-case scenario, is called a: A.) Fixed budget B.) Rolling budget C.) Merchandise purchases budget D.) Flexible budget E.) Production budget

E.) Production Budget

Rent and maintenance expenses would most likely be allocated based on: A.) Number of invoices processed B.) Number of hours worked C.) Number of employees in each department D.) Sales volume by department E.) Square feet of floor space occupied

E.) Square feet of floor space occupied

To compute equivalent units of production, one must be able to reasonably estimate: A.) Units started and completed B.) Materials cost C.) Units completed D.) Direct labor cost E.) The percentage of completion

E.) The percentage of completion

Products that are in the process of being manufactured but are not yet complete are called: A.) Finished goods inventory. B.) Raw materials inventory. C.) Cost of goods sold. D.) Conversion costs. E.) Work in process inventory.

E.) Work in process inventory

The two basic types of cost accounting systems are: A.) Job order costing and customized service costing. B.) Job order costing and periodic costing. C.) Job Order costing and process costing. D.) Job order costing and customized product costing. E.) Job order costing and perpetual costing.

c.) Job order costing and process costing.