ACC - Cost accounting homework Exam

1. Sheera Company is a design shop that produces jobs to customer specifications. During March, Job #351 was worked on and the following information was available.
Direct Material Used $2,000
Direct Labor Hours worked 12
Machine Time used 9
Direct Labor Rate per Hour $5
Overhead application rate per hour of machine time $16

What was the total cost of Job #351 for March?
A. $2,013
B. $2,204
C. $2,315
D. $1,992

2. The __ provides management with a historical summation of total costs for a given product.

A. Employee time sheet
B. Job order cost sheet
C. Bill of lading
D. Material requisition

3. Solarte Company uses a job order costing system and the following information is available from its records. The company currently has 3 jobs in process #7, #11, and #13.
Raw Material $120,000
DL per hour $8.50
Overhead applied based on DL cost 125%

Direct material was requisitioned as follows for each job respectively: 25%, 30%, and 30%; the balance of the requisitions was considered indirect. Direct labor hours per job are 2,200, 3,100, and 3,700, respectively. Indirect labor is $55,000. Other actual Overhead costs totaled $50,000.

How much overhead was applied to Work in Process?

A. $95,625
B. $99,235
C. $100,885
D. $90,665

4. Which of the following firms would most likely use a job order costing system?

A. Health Care Clinic
B. Manufactures shampoo
C. Manufactures baby food
D. Manufactures air mattresses

5. Which of the following firms would most likely use a process costing system?

A. Makes wedding cakes
B. Provides landscaping services
C. Produces college text books
D. Manufactures coffee filters

6. Which of the following is added to FIFO EUP to derive weighted average EUP?

A. Beginning WIP EUP completed in prior period
B. Beginning WIP EUP produced in current period
C. Ending WIP EUP not completed
D. Ending WIP EUP completed

7. Havana Company uses a weighted average process costing system and started 32,000 units this month. Winters had 12,000 units that that were 25% complete as to conversion costs in beginning WIP inventory and 5,000 units that were 30% complete as to conversion costs in ending WIP inventory. What are the equivalent units for conversion costs?

A. 43,250
B. 45,100
C. 42,900
D. 40,500

8. Which is the best cost accumulation procedure to use by companies that make relatively small quantities of distinct products or perform unique services that conform to the specifications designated by the purchaser?

A. Actual
B. Standard
C. Job order
D. Process

9. Which of the following best describes the difference between the weighted average and FIFO methods for EUP?

A. The way beginning WIP inventory is treated
B. The way ending WIP inventory is treated
C. The way they calculate total units to account for.
D. The way they calculate total costs to account for.

10. Marx Company applies Overhead to jobs at a rate of 30% of direct labor cost. Direct Material of $1,150 and direct labor of $1,500 were expended on job #12 during September. On August 31st, the balance of job #12 was $2,500. The balance on September 30th is?

A. $4,550
B. $5,600
C. $5,450
D. $6,050

11. The sum of the Labor rate variance and the labor efficiency variance equals:

A. The total Labor variance
B. The material mix variance
C. The material yield variance
D. No meaningful number

12. Management would generally expect favorable variances if standards were based on which of the following capacity measures?

A. Ideal
B. Foreign
C. Expected
D. None of the above

13. The overhead variance calculated as total budgeted overhead at the actual input production level minus total budgeted overhead at the standard hours allowed for actual output is:

A. Efficiency variance
B. Spending variance
C. Volume variance
D. Budget variance

14. The following information is for Patterson Company’s July production:
Standards:
Material 3 feet per unit @ 4.00 per foot
Labor 2.5 hours per unit @ $7.60 per hour

Actual:
Production 2,500 units produced during this month
Material 8,100 feet used; 9,000 feet purchased at $4.50 per foot
Labor 6,000 direct labor hours @ $7.70 per hour

What is the Material Quantity Variance? (round to the nearest dollar)
A. $2,400 Favorable
B. $2,150 Favorable
C. $2,400 Unfavorable
D. $2,150 Unfavorable

15. Using the information from Question #14, what is the labor rate variance? (round to the nearest dollar)

A. $600 Unfavorable
B. $850 Favorable
C. $850 Unfavorable
D. $600 Favorable

16. Chronologically, the first part of the master budget prepared would be the:

A. Sales budget
B. Production budget
C. Cash budget
D. Pro forma financial statements

17. A pro forma financial statement is:

A. A financial statement for past periods
B. A projected or budgeted financial statement
C. Presented for the form but contains no dollar amounts
D. A statement of planned production

18. The method of budgeting that adds one month’s budget to the end of the plan when the current month’s budget is dropped from the plan is:

A. Long-term
B. Operations
C. Incremental
D. Continuous

19. Soho Company is preparing its Manufacturing Overhead budget for the second quarter of the year. Budgeted variable factory overhead is $2 per unit produced; budgeted fixed factory overhead is $54,000 per month, with $18,000 of this amount being factory depreciation.
If the budgeted production for May is 4,500 units, then the total budgeted factory overhead per unit is:
A. $14
B. $18
C. $12
D. $15

20. Using the information from #19, if the budgeted cash disbursements for factory overhead for June are $70,000, then the budgeted production for June must be:

A. 13,040 units
B. 16,200 units
C. 17,000 units
D. 16,500 units

Short Answers:
Wright Company adds material at the start of the production. The following production is available for September:
Beginning WIP Inventory
(55% complete as to conversion) 8,000 units
Started this period 100,000 units
Ending WIP Inventory
(75% complete as to conversion) 6,500 units

Beginning WIP Inventory Costs:
Material $26,500
Conversion $78,900

Current Period Costs:
Material $77,600
Conversion $125,055

A. How many units must be accounted for?
B. What is the total cost to account for?
C. What are the EUP using the weighted average method.
D. What are the EUP using the FIFO method.

In July 2013, Zing Corporation purchased 18,000 gallons of Numerol for $55,000 to use in the production of product MR57. During July, Zing Inc. manufactured 3,700 units of product for MR57. The following information is available about standard and actual quantities and costs: (Round to the nearest penny)

Standard for 1 Unit Actual Usage for July
Direct Material 4.2 Gallons @ $3/gallon 16,550 Gallons
Direct Labor 20 minutes @ $8 per DLH 1,250 DLHs @ $8.02 per DLH

A. Compute the Material price variance
B. Compute the Material quantity variance
C. Compute the Labor Rate Variance
D. Compute the Labor Efficiency Variance
E. Compute the total labor Variance