ACCT 344 Final Exam

ACCT 344
Final Exam
Page 1
1 (TCO 2) Which cost is NOT a period cost?
2. (TCO 2) Which product would use job-order costing?
3. (TCO 3) As production occurs, materials, direct labor, and
applied manufacturing overhead are recorded in
4. (TCO 8) A company keeps 60 days of materials inventory on hand
to avoid shutdowns due to materials shortages. Carrying costs average $5,000
per day. A competitor keeps 30 days of inventory on hand, and the competitor’s
carrying costs average $2,000 per day. The value-added costs are
5. (TCO 8) Which is a value-added activity?
6. (TCO 1) The break-even point is
7. (TCO 1) The Kringel Company provides the following
information. Sales (200,000 units) $500,000 Manufacturing costs Variable
$170,000 Fixed $30,000 Selling and administrative costs Variable $80,000 Fixed
$20,000 Which is the break-even point in units for Kringel?
8. (TCO 7) Which would be the most appropriate base for
allocating the costs of the maintenance department?
9. (TCO 7) Yo Department Store incurred $8,000 of indirect
advertising costs for its operations. The following data have been collected
for 2013 for its three epartments……….How much of the indirect advertising costs
will be allocated to the Cosmetics Department if newspaper ad space is the activity
driver?
10. (TCO 5) Which best describes zero-base budgeting?
11. (TCO 5) Bug Company manufactures buggies. Manufacturing a
buggy takes 20 units of wood and 1 unit of steel. Scheduled production of
buggies for the next 2 months is 500 and 600 units, respectively. Beginning
inventory is 4,000 units of wood and 30 units of steel. The ending inventory of
wood is planned to decrease 500 units in each of the next 2 months, and the
steel inventory is expected to increase 5 units in each of the next 2 months.
How many units of wood are expected to be used in production during the second
month?
12. (TCO 4) Which statement is true?
13. (TCO 6) Using more highly skilled direct laborers might affect
which variance?
14. (TCO 6) Which equation measures the total budget variance?
TCO 1) George Corporation has an
estimated monthly sales of 12,000 units for $80 per unit. Variable costs
include manufacturing costs of $50 and distribution costs of $20. Fixed costs
are $60,000 per month. Required: Determine each of the following values. a.
Unit contribution margin b. Monthly break-even unit sales volume Create a
contribution margin-based income statement.

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1. (TCO 1) George Corporation has an estimated monthly sales of
12,000 units for $80 per unit. Variable costs include manufacturing costs of
$50 and distribution costs of $20. Fixed costs are $60,000 per month……Required:
Determine each of the following values. a. Unit contribution margin b. Monthly
break-even unit sales volume Create a contribution margin-based income
statement.
2. (TCO 7) Darling Manufacturing Inc. manufactures two products,
A and B, from a joint process. A single production costs $5,000 and results in
200 units of A and 800 units of B. To be ready for sale, both products must be
processed further, incurring seperable costs of $3 per unit for A and $4 per
unit for B. The market price for Product A is $15 and for Product B is
$10…..Required: Allocate joint production costs to each product using the net
realizable value method.
3. (TCO 6)Santa Inc. manufactures toys based on the following
information……….Required: Compute the following variances (show calculations).
a. Materials usage variance b. Labor rate variance -c. Fixed overhead budget
variance
4. (TCO 4) Toshi Company incurred the following costs in
manufacturing desk……During the period, the company produced and sold 1,000
units. a. What is the inventory cost per unit using absorption costing? b. What
is the inventory cost per unit using variable costing?
5. (TCO 8) Musical Instruments Company manufactures two products
(trumpets and trombones). Overhead costs ($175,000) have been divided into
three cost pools that use the following activity drivers……….Required
(show all calculations) a. What is the allocation rate for trumpets per setup
using activity-based costing? b. What is the allocation rate for trumpets per
machine hours using activity-based costing? c. What is the allocation rate for
trumpets per packing order using activity-based costing?
6. (TCO 5) The Baxter Corporation has the following budgeted and
actual results……Required: Prepare a performance report for all costs, showing
flexible budget variances (indicate F or U).