- Description
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 $23,000 of these allocated general overhead costs would be avoided.
Required:
- Prepare a report that shows the effect on the company’s total net operating income of buying part O43 from the supplier rather than continuing to make it inside the company. (Input the amount as a positive value. Omit the “$” sign in your response.)
- 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.