Final Exam 302

  1. Managerial accounting differs from financial accounting in that financial accounting is
    primarily concerned with external financial reporting
  2. Which of the following is least likely to be an objective of a cost accounting system
    sales commission determination
  3. Madtack company's prime cost for november is
  4. Madtack company's cost of goods transferred to finished goods inventory for November is
  5. Inventoriable costs
    are regarded as assets before the products are sold
  6. A basic tenet of variable costing is that period costs should be currently expensed.  What is the rationale behind this procedure
    because period costs will occur whether or not production occurs, it is improper to allocate these costs to production and defer a current cost of doing business
  7. The Blue company has failed to reach its planned activity level during its first 2 years of operation.  The following table shows the relationship among units produced, sales, and normal activity for these years and the projected relationship for Year 3.  All prices and costs have remained the same for the last 2 years and are expected to do so in year 3.  Income has been positive in bothe Year 1 and Year 2.
    Equal to year 1
  8. The value of Valyn Corporation's actual ending finished goods inventory on the absorption costing basis was
  9. The value of Valyn Corporation's actual ending finished goods inventory on the variable costing basis was
  10. In job-order costing, the basic document to accumulate the cost of each order is the
    job-cost sheet
  11. A job-order cost system uses a predetermined factory overhead rate based on expected volume and expected fixed cost.  At the end of the year, underapplied overhead might be explained by which of the following situations
    • Actual volume                   Actual Fixed costs
    • Less than expected             Greater than expected
  12. Assume the predetermined overhead rate is $4.50 per direct labor hour.  The total cost of Job 83-50 is
  13. What are transferred-in costs in a process costing system?
    Cost of the output of a previous internal process that is subsequently used in a succeeding internal process
  14. Refer to the information on the preceding pages.  Using the weighted-average method, the total cost of the units in the ending work-in-process inventory at May 31 is
  15. ChemKing's standard price for one unit of material is
  16. Information on Hanley's direct labor costs for the month of January is as follows

    Actual direct labor rate $7.50
    Standard direct labor hours allowed 11,000
    Actual direct labor hours 10,000
    Direct labor rate variance-favorable $5,500

    The standard direct labor rate in January was
  17. The variance in an absorption costing system that measures the departure for the denominator level of activity that was used to set the fixed overhead rate is the
    Production volume variance
  18. The sales quantity variance for Gallia and Helvetica is
  19. The sales mix variance for Gallia and Helvetica is
  20. The contribution by Division 1 was
  21. The company is concerned about its operating performance, as summarized below:
    Revenues $300,000
    VC $180,000
    Operating Loss (40,000)

    How many additional units should have been sold in order for the company to break even in year 8
  22. BEH Co. is considering dropping a product.  Variable costs are $6.00 per unit.  Fixed overhead costs, exclusive of depreciation, have been allocated at arate of $3.50 per unit and will continue whether or not production ceases.  Depreciation on the equipment is $20,000 a year.  If production is stopped, the equipment can be sold for $18,000; if production continues, however, it will be useless at the end of 1 year and will have no salvage value.  The selling price is $10 per unit.  Ignoring taxes, the minimum units to be sold in the current year to break even on a cash flow basis is:
    4500 units
  23. At annual sales of $900,000, the Ebo, product has the following unit sales price and costs:

    Sales price $20
    Prime cost 6
    Manufacturing overhead:
    Variable 1
    Fixed 7
    Selling and admin:
    Variable 1
    Fixed 3
    Profit 2

    What is ebo's breakeven point in units
  24. On January 1, Lake Co. increased its direct labor wage rate. All other budgeted cost and revenues were unchanged.  How did this increase affect Lake's budged breakeven point and budgeted margin of safety?
    • Budgeted Breakeven point           Budgeted Margin of saftey
    • Increase                                          Decrease
  25. A company has revenues of $500,000 variable costs of $300,000, and pretax profit of $150,000.  IF the company increased the sales price per unit by 10% reduced fixed costs by 20%, and left variable cost per unit unchanged, what would be the new breakeven point in dollars?
  26. The total number of units MultiFrame needs to produce and sell to break even is
    150,000 units
  27. The number of table to be producted by Rokat during august is
    2,340 Tables
  28. Disregarding your response to any other question, assume Rokat's required production for August and September is 1,600 and 1,800 units, repectively, and the July 31 raw materials inventory is 4,200 units.  The number of table legs to be purchased in August is
    6,520 legs
  29. Listed beThe company must decide whether to continue making the product or buy it from and outside supplier. ............................What is the maximum amount per unit that the company can pay the supplier without decreasing its operating income?
  30. A company manufactures a product that is sold for $37.95.  It uses an absorption cost system.  Plant capacity is 750,000 units annually, but normal volume is 500,000 units.  Costs at normal volume are given below. 

    Gives us a table:

    Another paragraph

    The company should compare the total revenue to be derived from this order witht he total relevant costs of 
  31. When a multiproduct plant operates at full capacity, quite often decisions must be made as to which products to emphasize.  These decisions are frequently made with a short-run focus.  In making such decisions, managers should select products with the
    Highest contribution margin per unit of the constraining resource.
Card Set
Final Exam 302
Final Exam 302