DEVRY ACCT 346 Week 4 Midterm 1

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DEVRY ACCT 346 Week 4 Midterm 1

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• 1. Question (TCO 1) Managerial accounting
  stresses accounting concepts and procedures that
  are relevant to preparing reports for
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• 2. Question TCO 1) Which of the following
  statements regarding fixed costs is true?
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• 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?
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• 4. Question (TCO 1) Shulas 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?

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• 5. Question (TCO 1) Which of the following is
  an example of a manufacturing overhead cost?
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• 6. Question (TCO 1) Which of the following is a
  period cost?
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• 7. Question (TCO 1) If the balance in the
  Finished Goods Inventory account increased by
  30,000 during the period and the cost of goods
  manufactured was 220,000, how much is cost of
  goods sold?
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• 8. Question (TCO 2) BCS Company applies
  manufacturing overhead based on direct labor
  cost. Information concerning manufacturing
  overhead and labor for August follows
• Estimated
• Actual
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• 9.Question (TCO 2) During 2011, Madison Company
  applied overhead using a job-order costing system
  at a rate of 12 per direct labor hours.
  Estimated direct labor hours for the year were
  150,000, and estimated overhead for the year was
  1,800,000. Actual direct labor hours for 2011
  were 140,000 and actual overhead was 1,670,000.
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• What is the amount of under or over applied
  overhead for the year?
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• 10. Question (TCO 3) Companies in which of the
  following industries would not be likely to use
  process costing?
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• 11. Question (TCO 3) The Blending Department
  began the period with 45,000 units. During the
  period the department received another 30,000
  units from the prior department and completed
  60,000 units during the period. The remaining
  units were 75 complete. How much are equivalent
  units in The Blending Departments work in
  process inventory at the end of the period?
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• 12. Question (TCO 3) During March, the
  varnishing department incurred costs of 90,250
  for direct labor. The beginning inventory was
  3,500 units and 10,000 units were transferred to
  the varnishing department from the sanding
  department during June. The direct labor cost in
  the beginning inventory was 27,270. The ending
  inventory consisted of 2,000 units, which were
  25 complete with respect to direct labor. What
  is the cost per equivalent unit for direct labor?
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• 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?
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• 1. Question (TCO 4) The margin of safety is the
  difference between
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• 2. Question (TCO 4) Allen Company sells
  homework machines for 100 each. Variable costs
  per unit are 75 and total fixed costs are
  62,000. Allen is considering the purchase of new
  equipment that would increase fixed costs to
  84,000, but decrease the variable costs per unit
  to 60. At that level Allen Company expects to
  sell 3,000 units next year. What is Allens
  break-even point in units if it purchases the new
  equipment?
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• 3.Question (TCO 4) Paula Corporation sells a
  single product at a price of 275 per unit.
  Variable cost per unit is 135 and fixed costs
  total 356,860. If sales are expected to be
  825,000, what is Paulas margin of safety?