ACCT 349 COMPLETE WEEK QUIZ PACK LATEST
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ACCT 349 Complete Week Quiz Pack Latest
ACCT349
ACCT 349 Week 1 Quiz Latest
Question :(TCO 10)
Which of the following statements is true
about overhead cost variance analysis using activity-based costing?
Overhead cost variances are calculated for
output-unit level costs only.
Overhead cost variances are calculated for
variable manufacturing overhead costs only.
A 4-variance analysis can be conducted.
Activity-based costing uses input measures for
all activities, resulting in the inability to do flexible budgets needed for
variance analysis.
Question 2.(TCO 10)
Sebastian Company, which manufactures
electrical switches, uses a standard cost system and carries all inventories at
standard. The standard manufacturing overhead costs per switch are based on
direct labor hours and are shown below:
Variable overhead (5 hours at $12 per direct
manufacturing labor hour) $ 60
Fixed overhead (5 hours at $15 per direct
manufacturing labor hour, based on capacity of 200,000 direct manufacturing
labor hours per month) 75
Total overhead per switch $ 135
The following information is available for the
month of December:
- 46,000 switches were produced, although 40,000 switches
were scheduled to be produced.
- 225,000 direct manufacturing labor hours were worked at
a total cost of $5,625,000.
- Variable manufacturing overhead costs were $2,750,000.
- Fixed manufacturing overhead costs were $3,050,000.
The variable overhead spending variance for
December was
$50,000 U
$350,000 U
$10,000 F
$60,000 F
Question 3. (TCO 10)
Sebastian Company, which manufactures
electrical switches, uses a standard cost system and carries all inventories at
standard. The standard manufacturing overhead costs per switch are based on
direct labor hours and are shown below:
Variable overhead (5 hours at $12 per direct
manufacturing labor hour) $ 60
Fixed overhead (5 hours at $15 per direct
manufacturing labor hour, based on capacity of 200,000 direct manufacturing
labor hours per month) 75
Total overhead per switch $ 135
The following information is available for the
month of December:
- 46,000 switches were produced, although 40,000 switches
were scheduled to be produced.
- 225,000 direct manufacturing labor hours were worked at
a total cost of $5,625,000.
- Variable manufacturing overhead costs were $2,750,000.
- Fixed manufacturing overhead costs were $3,050,000.
The fixed overhead production volume variance
for December was
$450,000 F
$400,000 F
$50,000 U
$775,000 F
Question 4. (TCO 10)
The following information is for Pappillon
Corporation’s variable manufacturing overhead costs last month: favorable
flexible-budget variance of $3,000, unfavorable efficiency variance of $2,500.
The spending variance is
$500 favorable.
$5,500 unfavorable.
$5,500 favorable.
None of the above
Question 5. (TCO 10)
Budgeted overhead costs rates can be expressed
as an amount per unit of output or per unit of input.
True
False
Question 1. (TCO 6)
Homogeneity is used to
develop cost pools in which the costs have the
same or similar cost-allocation base.
develop cost pools of similar amounts for
allocation purposes.
develop cost pools based on similarity of
origination costs to be allocated.
develop costs pools only for activity-based
costing.
Question 2. (TCO 6)
In a customer cost hierarchy, the costs of a
sales visit made to a customer is
a customer output unit-level cost.
a customer batch-level cost.
a customer-sustaining cost.
a distribution-channel cost.
Question 3. (TCO 5)
Natural Nutrients Bakery of Southfield
produces three flavors of cat morsels that have budgeted and actual sales data
for a bag of a dozen of its cat morsels as follows for December 20XX.
Budgeted Data Actual Data
Tuna ChikBits ChezNips Tuna ChikBits ChezNips
Bags 7,200 4,800 4,000 10,800 3,600 7,200
CM per bag $2.50 $4.00 $5.00 $2.00 $3.00 $7.50
Cont. Margin $18,000 $19,200 $20,000 $21,600
$10,800 $54,000
Total Contribution Margin $57,200 $86,400
According to company forecasts, it was
budgeting to earn a 25% market share in total units (bags) of specialty
prepared cat treats sold in December 20XX in Southfield. Reliable industry
sources indicate that the total number of bags of cat treats sold for December
200X in Southfield was 72,000.
The sales-mix variance for December 20XX for
Natural Nutrients Bakery is
$8,600 F.
$8,760 F.
$160 F.
$180 F.
Question 4. (TCO 6)
The following data are for Kershaw Company for
the last month.
Budgeted direct labor mix at budgeted prices
for actual output produced the following.
3,825 skilled hours at $16 per hour
1,275 unskilled hours at $12 per hour
5,100 total hours
Actual results
4,000 skilled hours at $19 per hour
1,000 unskilled hours at $9 per hour
5,000 total hours
The direct labor yield variance for both types
of labor together is
$1,500 favorable.
$1,000 unfavorable.
$1,000 favorable.
$500 favorable.
Question 5. (TCO 6)
The following data are for Uriah Corp. for the
first quarter of the current fiscal year.
Actual Results Static Budget
Unit sales:
Product X 15,000 40,000
Product Y 65,000 60,000
Total 80,000 100,000
Contribution margin per unit:
Product X $4 $5
Product Y $3 $2
The sales-mix variance for both products
together is
$51,000 unfavorable.
$64,000 unfavorable.
$115,000 unfavorable.
$115,000 favorable.
ACCT 349 Week 3 Quiz Latest
Question 1. (TCO 1)
Troy Company derived the following costs
relationship from a regression analysis of its monthly manufacturing overhead cost.
Y = $80,000 + $12X where: Y = monthly
manufacturing overhead cost and X = machine hours.
The standard time required to manufacture one
6-unit case of Troy’s single product is 4 machine hours. Troy applies
manufacturing overhead to production on the basis of machine-hours, and its
normal annual production is 50,000 cases.
Troy’s estimated variable manufacturing
overhead cost for a month in which scheduled production is 10,000 cases would
be
$80,000.
$480,000.
$160,000.
$320,000.
Question 2. (TCO 1)
Which of the following is not a common problem
encountered in collecting data for cost estimation?
Lack of observing extreme values
Missing data
Changes in technology
Distortions resulting from inflation
Question 3. (TCO 3)
Major influences of competitors, costs, and
customers on pricing decisions are factors of
supply and demand.
activity-based costing and activity-based
management.
key management themes that are important to
managers attaining success in their planning and control decisions.
the value-chain concept.
Burbank Company manufactures a product that
has a variable cost of $25 per unit. Fixed costs total $1,000,000, allocated on
the basis of the number of units produced. Selling price is computed by adding
a 25% markup to full cost. How much should the selling price be per unit for
200,000 units?
$31.25
$42.00
$37.50
$30.00
Question 5. (TCO 3)
Price discrimination is
always illegal.
a type of peak-load pricing.
not regulated in the United States.
the practice of charging different prices to
different customers for the same product or service.
ACCT 349 Week 5 Quiz Latest
Question 1. (TCO 9)
MedicalTechnical, Inc. manufactures surgical
instruments to the exacting specifications of various customers. During April
2005, Job 911 for the production of 4,500 instruments was completed at the
following costs per unit.
Direct materials $ 60
Direct manufacturing labor 20
Allocated manufacturing overhead 80
$160
Final inspection of Job 911 disclosed 100
defective units and 50 spoiled units. The defective instruments were reworked
at a total cost of $12,000, and the spoiled instruments were sold to a jobber
for $3,000.
If the costs associated with spoilage and
reworked units are considered as normal to manufacturing operations, the unit
cost of the good units produced on Job 911 is
$165.
$164.
$162.
$160.
Question 2. (TCO 9) Walbreck Company had the following
production for the month of August.
Units
Work in process, August 1 6,000
Started during August 24,000
Completed and transferred to finished goods
18,000
Abnormal spoilage incurred 3,000
Work in process, August 31 9,000
Materials are added at the beginning of the
process. As to conversion cost, work in process was 20% complete at the
beginning and 70% complete at the end of the month. Spoilage is detected at the
end of the process.
Using the weighted-average method, the
equivalent units for August, with respect to conversion costs, were
30,000.
24,300.
23,700.
27,300.
Question 3. (TCO 9)
In manufacturing its products for the month of
January 20XX, Sandusky Corporation incurred normal spoilage of $7,000 and
abnormal spoilage of $3,000. How much spoilage cost should Sandusky charge as
inventoriable for the month of January 20XX? (Points: 6)
$0
$3,000
$7,000
$10,000
Question 4. (TCO 6)
Libations Corporation manufactures a line of
flags. The annual demand for its flag display is estimated to be 100,000 units.
The annual cost of carrying one unit in inventory is $1.60, and the cost to
initiate a production run is $50. There are no flag displays on hand, but
Libations had scheduled 60 equal production runs of the display sets for the
coming year, the first of which is to be run immediately. Libations Corporation
has 250 business days per year. Assume that sales occur uniformly throughout
the year and that production is instantaneous.
The estimated total setup cost for the flag
displays for the coming year is (Points : 6)
$2,000.
$3,000.
$8,000.
$12,500.
Question 5. (TCO 6)
Blaster began operations in June 20XX. Blaster
manufactures vehicle seat covers using a just-in-time production system
supported by a backflush costing system. This system has two trigger points:
(1) the purchase of raw materials, and (2) the sale of finished good units.
Standard unit costs are $40 for raw materials and $25 for conversion costs.
Blaster writes off any underallocated or overallocated conversion costs
immediately. The following data were available for June 20XX.
Production of good units 19,800
Sales of good units 19,750
Purchases of raw materials [20,000 units at $40]
$800,000
Conversion costs incurred $496,000
The June ending total for all inventory
balances is (Points : 6)
$16,250.
$12,250.
$11,250.
$10,000.
ACCT 349 Week 6 Quiz Latest
Question 1. (TCO 7)
The payback capital budgeting technique
considers the following.
Time Value of Money Income Over Entire Life of
Project
Yes Yes
Yes No
No Yes
No No
Question 2. (TCO 7)
The Valley Corporation is considering (as of
1/1/08) the replacement of an old machine that is currently being used. The old
machine is fully depreciated but can be used by the corporation through 2011.
If Valley decides to replace the old machine, Baker Company has offered to
purchase it for $50,000 on the replacement date. The disposal value of the old
machine would be zero at the end of 2011. Valley uses the straight-line method
of depreciation for all classes of machinery.
If the replacement occurs, a new machine would
be acquired from Busby Industries on January 2, 2008. The purchase price of
$500,000 for the new machine would be paid in cash at the time of replacement.
Due to increased efficiency of the new machine, estimated annual cash savings
of $150,000 would be generated through 2011, the end of its expected useful
life. The new machine is expected to have a zero disposal price at the end of
2011.
All operating cash receipts, operating cash
expenditures, and applicable tax payments and credits are assumed to occur at
the end of the year. Valley uses the calendar year for reporting purposes.
Discount tables for several different interest
(discount) rates that are to be used in any discounting calculations are given
below. Unless told otherwise, assume that Valley is not subject to income
taxes.
Period 6% 8% 10% 12% 14%
1 .94 .93 .91 .89 .88
2 .89 .86 .83 .80 .77
3 .84 .79 .75 .71 .68
4 .79 .74 .68 .64 .59
5 .75 .68 .62 .57 .52
Present Value of an Annuity of $1.00 Received
at the End of Each Period
Period 6% 8% 10% 12% 14%
1 0.94 0.93 0.91 0.89 0.88
2 1.83 1.78 1.73 1.69 1.65
3 2.67 2.58 2.49 2.40 2.32
4 3.47 .3.31 3.17 3.04 2.91
5 4.21 3.99 3.79 3.61 3.43
The payback period to replace the old machine
with the new machine is
3.3 years.
3.0 years.
4.0 years.
2.5 years.
Question 3. (TCO 7)
The Valley Corporation is considering (as of
1/1/08) the replacement of an old machine that is currently being used. The old
machine is fully depreciated but can be used by the corporation through 2011.
If Valley decides to replace the old machine, Baker Company has offered to
purchase it for $50,000 on the replacement date. The disposal value of the old
machine would be zero at the end of 2011. Valley uses the straight-line method
of depreciation for all classes of machinery.
If the replacement occurs, a new machine would
be acquired from Busby Industries on January 2, 2008. The purchase price of
$500,000 for the new machine would be paid in cash at the time of replacement.
Due to increased efficiency of the new machine, estimated annual cash savings
of $150,000 would be generated through 2011, the end of its expected useful
life. The new machine is expected to have a zero disposal price at the end of
2011.
All operating cash receipts, operating cash
expenditures, and applicable tax payments and credits are assumed to occur at
the end of the year. Valley uses the calendar year for reporting purposes.
Discount tables for several different interest
(discount) rates that are to be used in any discounting calculations are given
below. Unless told otherwise, assume that Valley is not subject to income
taxes.
Present Value of $1.00 Received at the End of
the Period
Period 6% 8% 10% 12% 14%
1 .94 .93 .91 .89 .88
2 .89 .86 .83 .80 .77
3 .84 .79 .75 .71 .68
4 .79 .74 .68 .64 .59
5 .75 .68 .62 .57 .52
Present Value of an Annuity of $1.00 Received
at the End of Each Period
Period 6% 8% 10% 12% 14%
1 0.94 0.93 0.91 0.89 0.88
2 1.83 1.78 1.73 1.69 1.65
3 2.67 2.58 2.49 2.40 2.32
4 3.47 .3.31 3.17 3.04 2.91
5 4.21 3.99 3.79 3.61 3.43
The accrual accounting rate of return on
initial investment to the nearest percent is
0%.
11.0%.
5.6%.
30%.
Question 4. (TCO 7)
Assume that a required rate of return of 12%
is used to compute the NPV of a project. If NPV is positive, IRR is greater
than 12%.
True
False
Question 5. (TCO 7)
If the income tax rate for a profitable
company is 30%, a depreciation deduction of $10,000 results in a tax savings of
$7,000 (before considering the time value of money).
True
False
ACCT 349 Week 7 Quiz Latest
Question 1. (TCO 8)
Which of the following is not a benefit
associated with decentralization? (Points : 6)
Quicker decision making
Increased motivation of subunit managers
Increased competition among managers
Greater responsiveness to local needs
Question 2. (TCO 8)
The San Jose Manufacturing Company has two
divisions in Kansas—the Holton Division and the Derby Division. Currently,
Derby buys a part (10,000 units) from Holton for $16 per unit. Holton has
purchased new equipment and wants to increase the price to Derby to $18 per
unit. The controller of Derby claims that she cannot afford to go that high,
because it will decrease the division’s profit to near zero. Derby can buy the
part from an outside supplier for $16 per unit. The incremental costs per unit
that San Jose incurs to produce each unit are Holton’s variable cost of $12.
Fixed costs per unit to Holton with the recent purchase of equipment are $5.
If Holton has no alternative uses for its
facilities and the external supplier drops the price to $11 per unit, what
should be done from the point of view of
Company as a whole/Derby Division only?
(Points: 6)
Buy from the Holton Division/Buy from the external
supplier.
Buy from the external supplier/Buy from Holton
Division.
Buy from external supplier/ Buy from external
supplier.
Buy from Holton Division/ Buy from Holton
Division.
Question 3. (TCO 8)
Jesse James is a manager at a local bank.
Jesse’s management style is best described as entrepreneurial—he is risk
neutral. Wyonia Tyus is a customer service representative who reports to Jesse.
Wyonia is risk averse. In designing a compensation package for Jesse and
Wyonia, which type of compensation arrangement should be emphasized more? Jesse
James/Wyonia Tyus (Points : 6)
Performance-based/Performance-based
Performance-based/Straight salary
Straight salary/Performance-based
Straight salary/Straight salary
Question 4. (TCO 8)
Information pertaining to the Woodsy Creek
Division of MO Corporation for 20XX follows.
Revenues $950,000
Variable costs 575,000
Traceable fixed costs 336,500
Average invested capital 350,000
Imputed interest rate 10%
The return on investment (ROI) was (Points :
6)
4%.
10%.
11%.
37%.
The primary difference between centralization
and decentralization is (Points : 6)
separate offices for all managers.
geographical separation of divisional
headquarters and central headquarters.
the extent of freedom of decision making by
many levels of management.
the relative size of the firm.
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