ACCT 346 Quiz, Midterm and Final Exam

                                  ACCT 346 Managerial Accounting - DeVry

ACCT 346 Quiz

1. Question : (TCO 2) Bubba’s Crawfish Processing Company uses a traditional overhead allocation based on direct labor hours. For the current year overhead is estimated at $2,250,000 and direct labor hours are budgeted at 415,000 hours. Actual overhead was $2,200,000 and actual direct labor hours worked were 422,000. 

(a) Calculate the predetermined overhead rate.
(b) Calculate the overhead applied.
(c) Determine the amount of overhead that is over/underapplied
2. Question : (TCO 2) Thibodeaux Limousine Corporation is trying to determine a predetermined manufacturing overhead. Estimated overhead for the upcoming year is $776,000. Budgeted machine hours are 105,000 hours, and budgeted labor hours are 17,500 hours at a rate of $10.00 per hour. Compute the predetermined overhead rate based on:
(a) Direct labor dollars
(b) Direct labor hours
(c) Machine hours

3. Question : (TCO 1) List and briefly describe four of the five differences between managerial accounting and financial accounting.

4. Question : (TCO 2)The following information is available for Sappy’s Surgical Shears for the fiscal year ending December 31, 20XX. ……………..
Prepare a schedule of cost of goods manufactured.

5. Question: (TCO 2) Match each of the following six terms with the phrase that most closely describes it. Each answer below may be used only once.
 ______    1.     activity-based costing                           
______    2.     cost of goods available for sale
______    3.     period costs
______    4.     process costing system
______    5.     just-in-time system
______    6.     work in process

6. Question : (TCO 2) Far Out Ceramics makes custom macaroni tile and applies job-order costing. The following information relates to the fiscal year ending December 31, 20XX. 

7. Question: (TCO 2) Match each of the six following terms with the phrase that most closely describes it. Each answer may be used only once. 
 _____                    1. Direct costs
_____                    2. Fixed costs
_____                    3. Incremental costs
_____                    4. Economic Resource Planning system
_____                    5. Noncontrollable costs
_____                    6. Opportunity costs
8. Question : (TCO 3) The Marinade Department began the period with 150,000 units. During the period the department received another 180,000 units from the prior department and at the end of the period 112,000 units remained which were 17% complete. How much are equivalent units in The Marinade Department’s work in process inventory at the end of the period?

9. Question: (TCO 3)  The Franc Zeppo Venture manufactures a product that goes through two processing departments.  Information relating to the activity in the first department during  April is given below :

ACCT 346 Week 4 Midterm Exam
1. (TCO 4) Which of the following will have no effect on the break-even point in units? (Points : 4)
2. (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 : 4)
3. (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 Paula’s margin of safety? (Points : 4)
4. (TCO 5) Which of the following is treated differently in full costing than in variable costing? (Points : 4)
5. (TCO 5) Which of the following items on a variable costing income statement will change in direct proportion to a change in sales? (Points : 4)
6. (TCO 5) Peak Manufacturing produces snow blowers. The selling price per snow blower is $100. Costs involved in production are:…… (Points : 4)
7. (TCO 5) The cost objective is the (Points : 4)
8. (TCO 6) Which of the following statements about cost pools is not true? (Points : 4)
9. (TCO 6) AC Consulting Company has purchased a new $18,038 copier. This overhead cost will be shared by the purchasing, accounting, and information technology departments since those are the only departments which will be able to access the machine. The company has decided to allocate the cost based on the number of copies made by each department. Each department has estimated the number of copies which will be made over the life of the copier……. (Points : 4)
10. (TCO 7) A company is trying to decide whether to keep or drop the sporting goods department in its department store. If the segment is dropped, the manager will be fired. The manager's salary, in relation to the decision to keep or drop the sporting goods department, is (Points : 4)
11. (TCO 7) BigByte Company has 12 obsolete computers that are carried in inventory at a cost of $13,200. If these computers are upgraded at a cost of $7,500, they could be sold for $15,300. Alternatively, the computers could be sold "as is" for $9,000. What is the net advantage or disadvantage of reworking the computers? (Points : 4)
12. (TCO 7) YXZ Company’s market for the Model 55 has changed significantly, and YXZ has had to drop the price per unit from $275 to $135. There are some units in the work in process inventory that have costs of $160 per unit associated with them. YXZ could sell these units in their current state for $100 each. It will cost YXZ $10 per unit to complete these units so that they can be sold for $135 each. Which of the following is the amount of sunk costs in this problem? (Points : 4)
10. (TCO 3) Which of the following companies is most likely to use a process costing system? (Points : 4)
11. (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 Department’s work in process inventory at the end of the period? (Points : 4)
13. (TCO 4) Total costs were $75,800 when 30,000 units were produced and $95,800 when 40,000 units were produced. Use the high-low method to find the estimated total costs for a production level of 32,000 units. (Points : 4) 

ACCT 346 Week 8 Final Exam

Page 1
1. (TCO 1) A difference between actual costs and planned costs (Points : 4)
2. (TCO 1) Which of the following is not likely to be a fixed cost? (Points : 4)
3.(TCO 2) Which of the following is not a manufacturing cost? (Points : 4)
4. (TCO 2) A job-order costing system is likely used by a (Points : 4)
5. (TCO 3) Equivalent units are calculated by (Points : 4)
6. (TCO 3) The Freedom Corporation’s painting department had a beginning inventory of 580 units, which had direct material costs of $22,715. During June, 9,290 units were started and costs of $1,268,085 were incurred for direct material. Ending inventory consists of 1,000 units, which are 35% complete with respect to direct material. What is the cost per equivalent unit for direct material? (Points : 4)
7. (TCO 4) Which of the following is not an assumption of C-V-P analysis? (Points : 4)
8. (TCO 4) The contribution margin per unit is the difference between (Points : 4)
9. (TCO 5) Full costing (Points : 4)
10. (TCO 5) Which of the following is not true when units sold exceed units produced? (Points : 4)
11. (TCO 6) Cost-plus contracts are common in which of the following industries? (Points : 4)
12. (TCO 6) Which of the following is not generally true when a company compares ABC and traditional costing? (Points : 4)
13. (TCO 7) Fixed costs that will be eliminated if a particular course of action is undertaken are called (Points : 4)
Page 2
1. (TCO 7) Two or more products that result from common inputs are called (Points : 4)
2. (TCO 8) Activity based pricing seeks to (Points : 4)
3. (TCO 8) When deciding to accept or reject a special order, which of the following costs would most likely not be relevant? (Points : 4)
4. (TCO 9) Present value techniques (Points : 4)
5.(TCO 9) The internal rate of return (Points : 4)
6. (TCO 10) A method of budget preparation that requires all budgeted amounts to be justified by the department, even if the amounts were supported in prior periods, is called (Points : 4)
7. (TCO 10) Which budget is prepared first? (Points : 4)
8. (TCO 10) The difference between standard costs and budgeted costs is that standard costs (Points : 4)
9. (TCO 10) The overhead volume variance indicates that (Points : 4)
10. (TCO 10) A subunit that has responsibility for controlling cost but not revenues is a(n) (Points : 4)
11. (TCO 10) Which of the following is not an advantage of decentralization for a company? (Points : 4)
12. (TCO 10) The ratio that measures the return earned independently of how the firm is financed is the (Points : 4) 23232323232323232323232323232323232323232323232323232323232323232323232323232323232323
Page 3
1. (TCO 1) Distinguish between product costs and period costs. Define both types of costs and provide examples. (Points : 20)
2. (TCO 6) Pacific Airlines has three service departments; ticketing, baggage handling, and aircraft maintenance. Costs of these departments are allocated to two revenue producing departments, domestic and international flights. Costs for the service departments are not separated into fixed and variable and the totals are as follows:
3. (TCO 10) Gina's Boutique makes custom jewelry. One item, the guru necklace, is a best seller and sales in units for the first quarter are as follows: 
4. (TCO 2) Singleton Company is trying to determine a predetermined manufacturing overhead. Estimated overhead for the upcoming year is $600,000. Budgeted machine hours are 120,000 hours, and budgeted labor hours are 15,000 hours at a rate of $20.00 per hour. Compute the predetermined overhead rate based on:323232323232323232323232323232323232323232323232323232323
Page 4
1. (TCO 9) A project will require an initial investment of $600,000 and is expected to generate the following cash flows:
2. (TCO 4) Legal Docs Inc is a legal services firm that files incorporation papers for small businesses. They charge $1,000 per application.  This year's income statement shows the following:

3. (TCO 5) The following data has been taken from Air-Tite company in its first year of business.