ACCT346 Midterm Exam 2

1.

Question :

(TCO 1) Which of the following is not a difference between financial accounting and managerial accounting?

Points Received:

4 of 4

2.

Question :

TCO 1) Which of the following statements regarding fixed costs is true?

Points Received:

4 of 4

3.

Question :

(TCO 1) You own a car and are trying to decide whether or not to trade it in and buy a new car. Which of the following costs is an opportunity cost in this situation?

Points Received:

4 of 4

4.

Question :

(TCO 1) Shula’s 347 Grill has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,700; depreciation, $800; and other fixed costs, $600. Each steak dinner sells for $14.00 each. How much is the budgeted variable cost per unit?

Points Received:

4 of 4

5.

Question :

(TCO 1) Which of the following is an example of a manufacturing overhead cost?

Points Received:

4 of 4

6.

Question :

(TCO 1) Product costs

Points Received:

4 of 4

7.

Question :

(TCO 1) At December 31, 2010, WDT Inc. has a balance in the Work in Process Inventory account of $62,000. At January 1, 2010, the balance was $55,000. Current manufacturing costs for the year are $292,000, and cost of goods sold is $284,000. How much is cost of goods manufactured?

Points Received:

4 of 4

8.

Question :

(TCO 2) BCS Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for August follows:

Estimated

Actual

Overhead cost

$174,000

$171,000

Direct labor hours

5,800

5,900

Direct labor cost

$87,000

$89,975

How much overhead should be applied in total during August?

Points Received:

4 of 4

9.

Question :

(TCO 2) Citrus Company incurred manufacturing overhead costs of $300,000. Total overhead applied to jobs was $306,000. What was the amount of overapplied or underapplied overhead?

Points Received:

4 of 4

10.

Question :

(TCO 3) Companies in which of the following industries would notbe likely to use process costing?

Points Received:

4 of 4

11.

Question :

(TCO 3) The Blending Department began the period with 20,000 units. During the period the department received another 80,000 units from the prior department and at the end of the period 30,000 units remained, which were 40% complete. How much are equivalent units in The Blending Department’s work in process inventory at the end of the period?

Points Received:

4 of 4

12.

Question :

(TCO 3) Ranger Glass Company manufactures glass for French doors. At the start of May, 2,000 units were in-process. During May, 11,000 units were completed and 3,000 units were in process at the end of May. These in-process units were 90% complete with respect to material and 50% complete with respect to conversion costs. Other information is as follows:

Work in process, May 1:

Direct material

$36,000

Conversion costs

$45,000

Costs incurred during May:

Direct material

$186,000

Conversion costs

$255,000

Calculate the cost per equivalent unit for conversion costs.

Points Received:

4 of 4

13.

Question :

(TCO 4) Clearance Depot has total monthly costs of $8,000 when 2,500 units are produced and $12,400 when 5,000 units are produced. What is the estimated total monthly fixed cost?

Points Received:

4 of 4

Page:

Page:

1.

Question :

(TCO 4) Which of the following will have no effect on the break-even point in units?

Points Received:

4 of 4

2.

Question :

(TCO 4) Circle K Furniture has a contribution margin ratio of 16%. If fixed costs are $176,800, how many dollars of revenue must the company generate in order to reach the break-even point?

Points Received:

4 of 4

3.

Question :

(TCO 4) Randy Company produces a single product that is sold for $85 per unit. If variable costs per unit are $26 and fixed costs total $47,500, how many units must Randy sell in order to earn a profit of $100,000?

Points Received:

4 of 4

4.

Question :

(TCO 5) In full costing, when does fixed manufacturing overhead become an expense?

Points Received:

4 of 4

5.

Question :

(TCO 5) Variable costing income is a function of:

Points Received:

4 of 4

6.

Question :

(TCO 5) Peak Manufacturing produces snow blowers. The selling price per snow blower is $100. Costs involved in production are:

Direct Material per unit

$20

Direct Labor per unit

12

Variable manufacturing overhead per unit

10

Fixed manufacturing overhead per year

$148,500

In addition, the company has fixed selling and administrative costs of $150,000 per year. During the year, Peak produces 45,000 snow blowers and sells 30,000 snow blowers. How much fixed manufacturing overhead is in ending inventory under full costing?

Points Received:

4 of 4

7.

Question :

(TCO 6) Which of the following is not a reason that companies allocate costs?