Issuu on Google+

ACC 349 Final Exam Guide To Purchase This Material Click below Link http://www.acc349paper.com/product-26-ACC-349-Final-Exam-Guide FOR MORE CLASSES VISIT www.acc349paper.com

1)

What

does

cost

accounting

measure,

record,

and

report?

2) What is the best way to handle manufacturing overhead costs in order to get the most timely job cost information?

3) At the end of the year, manufacturing overhead has been overapplied. What occurred to create this situation?

4) Which of the following would be accounted for using a job order cost system? 5) In a job order cost accounting system, the Work in Process account is

6) Which one of the following is an important feature of a job order cost system?

7)

8)

Which

Which

one

of

the

of

the

following

following

is

an

is

element

indirect

of

labor

considered?

manufacturing

overhead?

9) Which one of the following costs would be included in manufacturing overhead of a lawn mower manufacturer?

10)

A

well-designed

activity-based

costing

system

starts

with


11) An activity that has a direct cause-effect relationship with the resources consumed is a(n)

12) In traditional costing systems, overhead is generally applied based on

13)

All

of

14)

Which

15)

Which

the

following

of

the

of

the

statements

following following

are

is is

correct

a a

EXCEPT

that

value-added

activity?

nonvalue-added

activity?

16) Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of setting up machines, $800,000; machining, $1,800,000; and inspecting, $600,000. Information on the two products is:

Direct Machine Machine Inspections

Overhead

Mini labor

A

Maxi

hours

15,000 600 24,000

setups hours 800

applied

to

Mini

A

using

activity-based

B 25,000 400 26,000 700

costing

is

17) Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of setting up machines, $800,000; machining, $1,800,000; and inspecting, $600,000. Information on the two products is:

Mini

A

Maxi

B


Direct Machine Machine Inspections

labor

hours

15,000 600 24,000

setups hours 800

25,000 400 26,000 700

Overhead applied to Mini A using traditional costing using direct labor hours is

18) Which of the following factors would suggest a switch to activity-based costing?

19) Rosen, Inc. has 10,000 obsolete calculators, which are carried in inventory at a cost of $20,000. If the calculators are scrapped, they can be sold for $1.10 each (for parts). If they are repackaged, at a cost of $15,000, they could be sold to toy stores for $2.50 per unit. What alternative should be chosen, and why?

20) Walton, Inc. is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $16, while the cost of assembling each unit is estimated at $17. Unassembled units can be sold for $55, while assembled units could be sold for $71 per unit. What decision should Walton make?

21) The cost to produce Part A was $10 per unit in 2005. During 2006, it has increased to $11 per unit. In 2006, Supplier Company has offered to supply Part A for $9 per unit. For the make-or-buy decision, 22) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s breakeven point?

23) Hartley, Inc. has one product with a selling price per unit of $200, the unit variable cost is $75, and the total monthly fixed costs are $300,000. How much is Hartley’s contribution margin ratio?


24) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers? 25)

Which

cost

is

charged

to

the

product

under

variable

costing?

26) Which cost is NOT charged to the product under variable costing? 27)

Variable

costing

28) If a company is concerned with the potential negative effects of establishing standards, they should

29) 30)

The

difference A

between

a

budget

standard

and

a

standard cost

is

that is

31) The per-unit standards for direct labor are 2 direct labor hours at $12 per hour. If in producing 2,400 units, the actual direct labor cost was $51,200 for 4,000 direct labor hours worked, the total direct labor variance is

32) The total variance is $10,000. The total materials variance is $4,000. The total labor variance is twice the total overhead variance. What is the total overhead variance?

33) The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 11,200 gallons of direct materials that actually cost $42,400 were used to produce 6,000 units of product. The direct materials quantity variance for last month was 34) If the standard hours allowed are less than the standard hours at normal capacity,


35) Manufacturing overhead costs are applied to work in process on the basis of

36)

The

overhead

volume

variance

relates

only

to

37) At January 1, 2004, Barry, Inc. has beginning inventory of 4,000 widgets. Barry estimates it will sell 35,000 units during the first quarter of 2004 with a 10% increase in sales each quarter. Barry’s policy is to maintain an ending inventory equal to 25% of the next quarter’s sales. Each widget costs $1 and is sold for $1.50. How much is budgeted sales revenue for the third quarter of 2004? 38) Lewis Hats is planning to sell 600 straw hats. Each hat requires a half pound of straw and a quarter hour of direct labor. Straw costs $0.20 per pound and employees of the company are paid $22 per hour. Lewis has 80 pounds of straw and 40 hats in beginning inventory and wants to have 50 pounds of straw and 60 hats in ending inventory. How many units should Lewis Hats produce in April?

39) Gottberg Mugs is planning to sell 2,000 mugs and produce 2,200 mugs during April. Each mug requires 2 pounds of resin and a half hour of direct labor. Resin costs $1 per pound and employees of the company are paid $12.50 per hour. Manufacturing overhead is applied at a rate of 120% of direct labor costs. Gottberg has 2,000 pounds of resin in beginning inventory and wants to have 2,400 pounds in ending inventory. How much is the total amount of budgeted direct labor for April?

40)

The

cost-plus

pricing

approach's

major

advantage

is

41) A company must price its product to cover its costs and earn a reasonable profit in

42) Prices are set by the competitive market when



Acc 349 final exam guide