# ACCT 349 Complete Week Quiz Pack Latest

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## ACCT 349 Complete Week Quiz Pack Latest

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.

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

ACCT 349 Week 2 Quiz Latest

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.

Question 4. (TCO 3)

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.

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

\$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)

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%.

Question 5. (TCO 9)

The primary difference between centralization and decentralization is (Points : 6)

separate offices for all managers.