Devry ACCT344 final exam

Devry ACCT344 final exam

Question # 00018265 Posted By: maqj Updated on: 06/24/2014 11:58 AM Due on: 06/30/2014
Subject Accounting Topic Accounting Tutorials:
Question
Dot Image

(TCO 2) Which cost is NOT a period cost? (Points : 5)

Lumber for furniture
Executive administrative assistant salary
Depreciation on sales staff's cars
Sales commission

Question 2.2.(TCO 2) Which product would use job-order costing? (Points : 5)

Ink pens
Custom boot maker
Soda pop
Horse saddles

Question 3.3.(TCO 3) As production occurs, materials, direct labor, and applied manufacturing overhead are recorded in (Points : 5)

cost of goods sold.
work-in-process.
materials.
finished goods.

Question 4.4.(TCO 8) A company keeps 60 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average $5,000 per day. A competitor keeps 30 days of inventory on hand, and the competitor's carrying costs average $2,000 per day. The value-added costs are (Points : 5)

$300,000.
$150,000.
$60,000.
$0.

Question 5.5.(TCO 8) Which is a value-added activity?(Points : 5)

Moving
Inspection
Processing
Waiting

Question 6.6.(TCO 1) The break-even point is (Points : 5)

the volume of activity where all fixed costs are recovered.
where fixed costs equal total variable costs.
where total revenues equal total costs.
where total costs equal total contribution margin.

Question 7.7.(TCO 1) The Kringel Company provides the following information.

Sales (200,000 units) $500,000
Manufacturing costs
Variable $170,000
Fixed $30,000
Selling and administrative costs
Variable $80,000
Fixed $20,000
Which is the break-even point in units for Kringel? (Points : 5)

33,334 units
100,000 units
40,000 units
200,000 units

Question 8.8.(TCO 7) Which would be the most appropriate base for allocating the costs of the maintenance department? (Points : 5)

Machine hours
Direct labor hours
Number of employees
Square feet

Question 9.9.(TCO 7) Yo Department Store incurred $8,000 of indirect advertising costs for its operations. The following data have been collected for 2013 for its three departments.

Shoes

Cosmetics

Crafts

Sales

$120,000

$100,000

$100,000

Direct advertising costs

$9,000

$7,000

$4,000

Newspaper ad space

60%

20%

20%


How much of the indirect advertising costs will be allocated to the Cosmetics Department if newspaper ad space is the activity driver?(Points : 5)

$8,000
$1,600
$1,400
$6,400

Question 10.10.(TCO 5) Which best describes zero-base budgeting? (Points : 5)

A budget that is developed for a single level of activity
A budget that analyzes existing activities (and continuation of that activity must be justified and resources needed must be justified by each manager)
A budget that is based solely on prior period information, adjusted for inflation
A budget that is continuous or rolling

Question 11.11.(TCO 5) Bug Company manufactures buggies. Manufacturing a buggy takes 20 units of wood and 1 unit of steel. Scheduled production of buggies for the next 2 months is 500 and 600 units, respectively. Beginning inventory is 4,000 units of wood and 30 units of steel. The ending inventory of wood is planned to decrease 500 units in each of the next 2 months, and the steel inventory is expected to increase 5 units in each of the next 2 months.
How many units of wood are expected to be used in production during the second month?(Points : 5)

12,500 units
10,000 units
15,000 units
12,000 units

Question 12.12.(TCO 4) Which statement is true? (Points : 5)

Absorption costing net income exceeds variable costing net income when units produced and sold are equal.
Variable costing net income exceeds absorption costing net income when units produced exceed units sold.
Absorption costing net income exceeds variable costing net income when units produced are less than units sold.
Absorption costing net income exceeds variable costing net income when units produced are greater than units sold.

Question 13.13.(TCO 6) Using more highly skilled direct laborers might affect which variance?(Points : 5)

Direct materials usage variance
Direct labor efficiency variance
Variable manufacturing overhead efficiency variance
All of the above

Question 14.14.(TCO 6) Which equation measures the total budget variance? (Points : 5)

AQ x (AP - SP).
SP x (AQ - SQ).
SQ x (AP - SP).
(AQ x AP) - (SQ x SP).



(TCO 1) George Corporation has an estimated monthly sales of 12,000 units for $80 per unit. Variable costs include manufacturing costs of $50 and distribution costs of $20. Fixed costs are $60,000 per month.

Required:
Determine each of the following values.
a. Unit contribution margin
b. Monthly break-even unit sales volume

Create a contribution margin-based income statement.(Points : 30)

Question 2.2.(TCO 7) Darling Manufacturing Inc. manufactures two products, A and B, from a joint process. A single production costs $5,000 and results in 200 units of A and 800 units of B. To be ready for sale, both products must be processed further, incurring seperable costs of $3 per unit for A and $4 per unit for B. The market price for Product A is $15 and for Product B is $10.

Required: Allocate joint production costs to each product using the net realizable value method.(Points : 30)

Question 3.3.(TCO 6) Santa Inc. manufactures toys based on the following information.

Standard costs

Materials (4 ounces at $4)

$16

Direct labor (1 hour per unit)

$7

Variable overhead (based on direct labor hours)

$3.50

Fixed overhead budget

$16,000

Actual results and costs

Materials purchased

Units

10,000

Cost

$38,500

Materials used in production

Finished product units

2,200

Raw material (ounces)

9,500

Direct labor hours

2,200

Direct labor cost

$18,000

Variable overhead costs

$8,400

Fixed overhead costs

$16,200

Required:

Compute the following variances (show calculations).

a. Materials usage variance

b. Labor rate variance

-c. Fixed overhead budget variance

(Points : 30)

Question 4.4.(TCO 4) Toshi Company incurred the following costs in manufacturing desk calculators.

Direct materials $14
Indirect materials (variable) 4
Direct labor 8
Indirect labor (variable) 6
Other variable factory overhead 10
Fixed factory overhead 28
Variable selling expenses 20
Fixed selling expenses 14

During the period, the company produced and sold 1,000 units.
a. What is the inventory cost per unit using absorption costing?
b. What is the inventory cost per unit using variable costing?(Points : 30)

Question 5.5.(TCO 8) Musical Instruments Company manufactures two products (trumpets and trombones). Overhead costs ($175,000) have been divided into three cost pools that use the following activity drivers.

Product

Number of setups

Machine hours

Packing orders

Trumpets

50

1,500

150

Trombones

50

4,500

250

Cost per pool

$60,000

$90,000

$25,000

Required (show all calculations)

a. What is the allocation rate for trumpets per setup using activity-based costing?

b. What is the allocation rate for trumpets per machine hours using activity-based costing?

c. What is the allocation rate for trumpets per packing order using activity-based costing?

(Points : 30)

Question 6.6.(TCO 5) The Baxter Corporation has the following budgeted and actual results.

Budgeted data

Actual results

Unit sales

35,000

Unit sales

36,000

Unit production

35,000

Unit production

37,000

Fixed overhead

Fixed overhead

Supervision

$25,000

Supervision

$23,500

Depreciation

$40,000

Depreciation

$40,000

Rent

$20,000

Rent

$20,000

Variable costs per unit

Variable costs

Direct materials

$25.00

Direct materials

$900,000

Direct labor

$26.00

Direct labor

$950,000

Supplies

$0.25

Supplies

$9,000

Indirect labor

$1.30

Indirect labor

$50,000

Electricity

$0.20

Electricity

$7,500

Required:

Prepare a performance report for all costs, showing flexible budget variances (indicate F or U).

Dot Image
Report this Question as Inappropriate
Tutorials for this Question
  1. maqj
    Tutorial # 00017725 Posted By: maqj Posted on: 06/24/2014 11:58 AM
    Puchased By: 9
    Tutorial Preview
    The solution of Devry ACCT344 final exam...
      Get the Solution
    Attachments
    Devry_ACCT344_final_exam.xlsx (11 KB)
    Devry_ACCT344_final_exam.docx (48.82 KB)
    Recent Feedback
    Rated By Feedback Comments Rated On
    pi...21 Rating Take care of presentation of work 01/14/2015
    la...15 Rating The work is done by great efficiency 07/26/2014
    da...r007 Rating Perfect work without any grammatical error 07/26/2014
    n...62 Rating Most affordable prices one can ever get 07/26/2014
    D...ce Rating Instant response 07/26/2014
  2. eUniversity
    Tutorial # 00022269 Posted By: eUniversity Posted on: 08/13/2014 02:43 PM
    Puchased By: 3
    Tutorial Preview
    The solution of ACCT 344 Week 8 Final Exam (ACCT344 Cost Accounting - DeVry)...
      Get the Solution
    Attachments
    ACCT_344_Week_8_Final_Exam.zip (43.24 KB)
  Get the Solution

Great! We have found the solution of this question!

Related Questions and Answers

Whatsapp Lisa