ACCT 346 Week 8 Final Exam
ACCT 346 Week 8 Final Exam
1. Question
: (TCO 1) The principle managers
follow when they only investigate significant departures from the plan is
commonly known as
2. Question : (TCO 1) Which of the following is not likely to be a fixed
cost?
3. Question : (TCO 2) Which of the following is not a manufacturing cost?
4. Question : (TCO 2) An allocation base is
5. Question : (TCO 3) Equivalent units are calculated by
6. Question : (TCO 3) In the assembly department, all the direct
materials are added at the beginning of the processing. Beginning Work in
Process inventory consists of 2,000 units with a direct materials cost of
$31,860. During the period, 15,000 units are started and direct materials
costing $250,000 are charged to the department. If there are 1,000 units in
ending inventory, what is the cost per equivalent unit?
7. Question : (TCO 4) Regression analysis
8. Question : (TCO 4) The number of units that must be sold to exactly
cover its fixed and variable costs is the
9. Question : (TCO 5) Which of the following is treated as a product
cost in variable costing?
10. Question : (TCO 5) If the number of units sold is less than the
number of units produced
11. Question : (TCO 6) A contract which specifies that the suppler will
be paid for the cost of production as well as some fixed amount or percentage
of cost is called a(n)
12. Question : (TCO 6) Which of the following is not generally true when
a company compares ABC and traditional costing?
13. Question : (TCO 7) Fixed costs that will be eliminated if a particular
course of action is undertaken are called
1. Question : (TCO 7) Common costs
2. Question : (TCO 8) Target costing
3. Question : (TCO 8) Which of the following are relevant in deciding
whether to accept or reject a special order?
4. Question : (TCO 9) Present value techniques
5. Question : (TCO 9) The internal rate of return
6. Question : (TCO 10) A method of budget preparation that requires all
budgeted amounts to be justified by the department, even if the amounts were supported
in prior periods, is called
7. Question : (TCO 10) Which budget is prepared first?
8. Question : (TCO 10) The standard cost is
9. Question : (TCO 10) In general, an unfavorable material variance
arises from
10. Question : (TCO 10) The type of center that has responsibility for
generating revenue as well as controlling costs is a(n)
11. Question : (TCO 10) Responsibility accounting holds managers
responsible for
12. Question : (TCO 10) Which ratio measures the rate earned on total
capital provided by the owners?
1. Question : (TCO 1) Distinguish managerial accounting from financial
accounting. Include a brief discussion of the differences in the types of
information provided to users as well as the differences of the users of the
accounting information.
2. Question : (TCO 6) Booth Financial Services, LLC has two revenue
producing departments, Financial Planning and Business Consulting. The
accounting department is trying to determine the best method to allocate $1,000,000
of common costs (secretarial staff, reception personnel, etc), either by salary
or number of employees. Information on the revenue departments are as follows:
Department Employees Salaries
Financial Planning 150
employees $10,000,000
Business Consulting 50
employees $5,000,000
(a) Allocate the $1,000,000 common costs to the two revenue
departments using both methods.
(b) Why are allocations called arbitrary?
3. Question : (TCO 10) Charlie Corp sells it products on both credit and
cash basis. Monthly sales are sold 20% for cash, 80% for credit. Credit sales
are collected 40% in the month of sale and 60% the following month. Sales for
the first quarter are as follows:
January $100,000
February $150,000
March $125,000
Compute cash collections for February.
4. Question : (TCO 2) Acme Fireworks uses a traditional overhead
allocation based on direct labor hours. For the current year overhead is
estimated at $1,000,000 and direct labor hours are budgeted at 200,000 hours.
Actual hours worked were 195,000 and actual overhead was $978,000.
(a) Compute the predetermined manufacturing overhead rate.
(b) Compute the applied manufacturing overhead.
(c) Compute the amount of over/under applied manufacturing
overhead.
1. Question : (TCO 9) An investment of $185,575 is expected to generate
returns of $65,000 per year for each of the next four years. What is the
investment's internal rate of return?
2. Question : (TCO 4) Legal Docs Inc is a legal services firm that files
incorporation papers for small businesses. They charge $1,000 per
application. This year's income
statement shows the following:
Sales $1,295,000
Variable Expenses $1,023,000
Contribution margin $272,000
Fixed costs $250,000
Profit $22,000
Required:
(a) Compute the break-even point in units.
(b) Compute the contribution margin ratio.
(c) Compute the current margin of safety.
(d) How many applications must the company sell to make a
profit of $350,000?
3. Question : (TCO 5) The following data has been taken from Air-Tite
company in its first year of business.
Units produced 100,000
Units sold 80,000
Units in ending inventory 20,000
Fixed manufacturing overhead $400,000
(a) Compute the amount of fixed manufacturing overhead that
would be expensed in the current year if full absorption costing is used.
(b) Compute the amount of fixed manufacturing overhead that
would be expensed in the current year if variable costing is used.
(c) Compute the amount of fixed manufacturing overhead that would
be included in ending inventory under full absorption costing.
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