Project #2769 - act346

1. (TCO 1) The principle managers follow when they only investigate significant departures from the plan is commonly known as (Points : 4)


2. (TCO 1) A company has a cost that is $2.00 per unit at a volume of 12,000 units and $2.00 per unit at a volume of 16,000 units. What type of cost is this? (Points : 4)


3. (TCO 2) A job-order costing system is likely used by a (Points : 4)


4. (TCO 3) Why do we compute equivalent units differently for raw materials and conversion costs?  (Points : 4)


5. (TCO 3) The Freedom Corporation’s painting department had a beginning inventory of 580 units, which had direct material costs of $22,715. During June, 9,290 units were started and costs of $1,268,085 were incurred for direct material. Ending inventory consists of 1,000 units, which are 35% complete with respect to direct material. What is the cost per equivalent unit for direct material? (Points : 4)


6. (TCO 4) The range of activity for which estimates of cost behavior are likely to be accurate is the (Points : 4)


7. (TCO 4) The contribution margin per unit is the difference between (Points : 4)


8. (TCO 5) Which of the following is treated as a product cost in variable costing? (Points : 4)


9. (TCO 5) Which of the following is not true when units sold exceed units produced? (Points : 4)


10. (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) (Points : 4)


11. (TCO 6) The traditional approach to cost allocation (Points : 4)


12. (TCO 7)  Which of the following is never considered in incremental analysis? (Points : 4)


13. (TCO 2) Ice Box Company manufactures refrigerators. Which of the following items is most likely to be an indirect material cost for Ice Box Company? (Points : 4)


1. (TCO 7) Two or more products that result from common inputs are called (Points : 4)

2. (TCO 8) Which of the following statements about price, demand and profit is most generally true? (Points : 4)

3. (TCO 8) Which of the following should be true in order for a company to accept a special order? (Points : 4)

4. (TCO 9) Present value techniques (Points : 4)

5. (TCO 9) Projects with a negative present value will always have a(n) (Points : 4)

6. (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 (Points : 4)

7. (TCO 10) Which budget is prepared first? (Points : 4)

8. (TCO 10) The difference between the standard and actual cost is a(n) (Points : 4)

9. (TCO 10) Which of the following are components of a direct labor variance? (Points : 4)

10. (TCO 10) A subunit that has responsibility for controlling cost but not revenues is a(n) (Points : 4)

11. (TCO 10) Responsibility accounting holds managers responsible for (Points : 4)

12. What is the major difference between full costing and vaiable costing:  (Points : 4)
1. (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. (Points : 25)
2. (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:

Financial Planning
150 employees
Business Consulting
50 employees

(a) Allocate the $1,000,000 common costs to the two revenue departments using both methods.
(b) Why are allocations called arbitrary?
 (Points : 25)
3. (TCO 10) Joanie Corp sells it products on both credit and cash basis. Monthly sales are sold 10% for cash, 90% 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.
 (Points : 25)
4. (TCO 2) Singleton Company is trying to determine a predetermined manufacturing overhead. Estimated overhead for the upcoming year is $600,000. Budgeted machine hours are 120,000 hours, and budgeted labor hours are 15,000 hours at a rate of $20.00 per hour. Compute the predetermined overhead rate based on: 

(a) Machine hours
(b) Direct labor hours
(c) Direct labor dollars..expressed as a %
 (Points : 25)
5. Captain Kirk’s Horticultural Products is beginning the budgeting process for 2008.  The sales forecast for the first quarter of 2008 is given below:

January                         50,000 bottles

February                       90,000 bottles

March                         145,000 bottles

The company’s policy is to have 30% of the subsequent month’s anticipated sales in inventory at the end of a month.  December’s ending inventory reflects this policy.  April’s sales are budgeted at 90,000 bottles.  Prepare a production budget for January, February, and March, 2008.


1. (TCO 9) A project will require an initial investment of $600,000 and is expected to generate the following cash flows:

   Year 1    $100,000
   Year 2    $250,000
   Year 3    $250,000
   Year 4    $200,000
   Year 5    $100,000

(a) What is the project's payback period?
(b) If the required rate of return is 20% and taxes are ignored, what is the project's net present value?
 (Points : 25)


3. Idol Company has developed standards for the materials required to produce a single unit of Model IWIN: 25 pounds of Supreme at $130.00 per pound

            Last month, Idol purchased 490,000 pounds of Supreme at a total cost of  $61,250,000.  Idol used 482,000 pounds of Supreme to make 19,000 units of IWIN.  

            Calculate the material price variance and material quantity variance, and indicate whether each variance is favorable or unfavorable. (Points : 25) 

Subject Mathematics
Due By (Pacific Time) 02/28/2013 01:30 am
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