ACC 349 Wk 5 – Apply: Connect Assignment, Final Exam

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ACC 349 Wk 5 – Apply: Connect Assignment, Final Exam
ACC 349 Wk 5 – Apply: Connect Assignment, Final Exam
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ACC 349 Wk 5 – Apply: Connect Assignment, Final Exam

The Gasson Company uses the weighted-average method in its process costing system. The company’s ending work in process inventory consists of 20,000 units, The ending work in process inventory is 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the costs per equivalent unit for the period $3.20 for the materials and $2.00 for labor and overhead, whatis the balance of the ending work in process inventory account would be: (Do not round Cost per equivalent unit)

Multiple Choice

$92,000

$63,500

$83,500

$104,000

 

 

 

Lasseter Corporation has provided its contribution format income statement for August. The company produces and sells a single product.

 

 

Sales (5,600 units)     $     235,200

Variable expenses            112,000

________________________________________       ________________________________________

Contribution margin        123,200

Fixed expenses        47,200

________________________________________       ________________________________________

Net operating income $     76,000

________________________________________________________________________________       ________________________________________________________________________________

 

If the company sells 5,700 units, its total contribution margin should be closest to:

Multiple Choice

$77,357

$125,400

$127,400

$123,200

 

 

 

Activity rates from Quattrone Corporation’s activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products:

 

Activity Cost Pools    Activity Rate

Processing customer orders       $95.31   per customer order

Assembling products  $2.87      per assembly hour

Setting up batches      $54.67   per batch

 

Last year, Product F76D involved 5 customer orders, 475 assembly hours, and 24 batches. How much overhead cost would be assigned to Product F76D using the activity-based costing system?

Multiple Choice

$1,298.57

$1,312.08

$3,151.88

$68,060.72

 

 

The following costs were incurred in September:

 

Direct materials  $39,400

Direct labor $34,000

Manufacturing overhead    $21,600

Selling expenses $19,700

Administrative expenses    $38,600

 

Conversion costs during the month totaled:

Multiple Choice

$61,000

$73,400

$55,600

$153,300

 

Wyly Inc. produces and sells a single product. The selling price of the product is $180.00 per unit and its variable cost is $57.60 per unit. The fixed expense is $392,088 per month.

 

The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)

 

Multiple Choice

$392,088

$1,225,275

$833,187

$576,600

 

 

Erkkila Inc. reports that at an activity level of 6,600 machine-hours in a month, its total variable inspection cost is $423,980 and its total fixed inspection cost is $162,426.

 

What would be the average fixed inspection cost per unit at an activity level of 6,900 machine-hours in a month? Assume that this level of activity is within the relevant range.

 

Multiple Choice

$39.63

$24.61

$88.85

$23.54

 

 

Bossie Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system:

 

 

Costs:

Wages and salaries     $268,000

Depreciation       205,000

Utilities      159,000

Total    $632,000

 

 

Distribution of resource consumption:

Activity Cost Pools

Assembly       Setting up       Other      Total

Wages and salaries     60%    25%    15%    100%

Depreciation       30%     25%    45%    100%

Utilities      20%    45%    35%    100%

 

 

How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool?

Multiple Choice

$379,200

$254,100

$241,433

$126,400

 

 

 

Aide Industries is a division of a major corporation. Data concerning the most recent year appears below:

 

Sales   $17,910,000

Net operating income $985,050

Average operating assets    $4,850,000

 

 

The division’s return on investment (ROI) is closest to: (Round your answer to 2 decimal places.)

Multiple Choice

2.50%

20.31%

5.50%

16.46%

 

 

Nikkel Corporation, a merchandising company, reported the following results for July:

 

Sales   $418,000

Cost of goods sold (all variable)       $175,500

Total variable selling expense    $23,700

Total fixed selling expense $21,800

Total variable administrative expense       $16,200

Total fixed administrative expense    $34,300

 

The contribution margin for July is:

Multiple Choice

$202,600

$361,900

$146,500

$242,500

 

 

Blue Corporation’s standards call for 6,000 direct labor-hours to produce 1,500 units of product. During May 1,350 units were produced and the company worked 1,400 direct labor-hours. The standard hours allowed for May production would be:

 

Multiple Choice

4,650 hours

1,400 hours

6,000 hours

5,400 hours

 

 

 

The following cost data pertain to the operations of Swestka Department Stores, Inc., for the month of July.

 

Corporate headquarters building lease      $82,300

Cosmetics Department sales commissions–Northridge Store   $5,930

Corporate legal office salaries   $64,400

Store manager’s salary-Northridge Store   $10,000

Heating-Northridge Store  $20,600

Cosmetics Department cost of sales–Northridge Store    $37,200

Central warehouse lease cost     $11,000

Store security-Northridge Store $16,500

Cosmetics Department manager’s salary–Northridge Store     $4,190

 

 

The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company’s stores.

 

 

What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?

Multiple Choice

$47,320

$43,130

$99,610

$37,200

 

 

 

Job 593 was recently completed. The following data have been recorded on its job cost sheet:

 

Direct materials  $2,429

Direct labor-hours      74          labor-hours

Direct labor wage rate       $    17        per labor-hour

Machine-hours    135        machine-hours

 

The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $18 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 593 would be:

Multiple Choice

$6,957

$3,441

$3,687

$6,117

 

 

Cadavieco Detailing’s cost formula for its materials and supplies is $1,850 per month plus $4 per vehicle. For the month of November, the company planned for activity of 80 vehicles, but the actual level of activity was 45 vehicles. The actual materials and supplies for the month was $2,000.

 

The materials and supplies in the planning budget for November would be closest to:

Multiple Choice

$2,000

$2,170

$3,761

$2,030

 

 

 

Part O43 is used in one of Scheetz Corporation’s products. The company’s Accounting Department reports the following costs of producing the 17,000 units of the part that are needed every year.

 

 

Per Unit

Direct materials  $4.20

Direct labor $4.90

Variable overhead      $7.90

Supervisor’s salary     $8.60

Depreciation of special equipment    $9.20

Allocated general overhead      $6.20

________________________________________

 

 

An outside supplier has offered to make the part and sell it to the company for $33.00 each. If this offer is accepted, the supervisor’s salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier’s offer were accepted, only $23,000 of these allocated general overhead costs would be avoided.

 

 

Required:

 

  1. Prepare a report that shows the effect on the company’s total net operating income of buying part O43 from the supplier rather than continuing to make it inside the company. (Input the amount as a positive value. Omit the “$” sign in your response.)

 

 

  1. Which alternative should the company choose?

 

Buy

Make

 

 

 

 

The following standards for variable manufacturing overhead have been established for a company that makes only one product:

 

 

Standard hours per unit of output     9.0  hours

Standard variable overhead rate $15.40     per hour

 

The following data pertain to operations for the last month:

 

Actual hours       2,975      hours

Actual total variable manufacturing overhead cost   $46,595

Actual output     250         units

 

 

What is the variable overhead efficiency variance for the month?

 

Multiple Choice

$11,165 U

$11,945 U

$34,650 F

$780 F

 

 

Olds Inc., which produces a single product, has provided the following data for its most recent month of operations:

 

Number of units produced 9,700

Variable costs per unit:

Direct materials  $121

Direct labor $105

Variable manufacturing overhead      $6

Variable selling and administrative expense      $13

Fixed costs:

Fixed manufacturing overhead  $349,200

Fixed selling and administrative expense  $727,500

 

There were no beginning or ending inventories. The absorption costing unit product cost was:

Multiple Choice

$226 per unit

$356 per unit

$232 per unit

$268 per unit

 

 

 

Zurasky Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below:

 

Alternative A  Alternative B

Materials costs    $24,000     $56,000

Processing costs  $30,000     $30,000

Equipment rental       $10,200     $28,100

Occupancy costs $19,100     $26,800

 

What is the differential cost of Alternative B over Alternative A, including all of the relevant costs?

Multiple Choice

$83,300

$89,600

$140,900

$57,600

 

 

A soft drink bottler incurred the following factory utility cost: $3,611 for 700 cases bottled and $3,702 for 1,000 cases bottled. Factory utility cost is a mixed cost containing both fixed and variable components. The variable factory utility cost per case bottled is closest to:

 

Multiple Choice

$5.16

$0.30

$3.70

$3.61

 

 

The Assembly Department started the month with 15,500 units in its beginning work in process inventory. An additional 289,500 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 21,250 units in the ending work in process inventory of the Assembly Department.

 

How many units were transferred to the next processing department during the month?

Multiple Choice

295,250

283,750

326,250

305,000

 

 

 

The cash budget is typically prepared before the direct materials budget.