ACCTG 5210 assignment 1

1. (1 point) Aesop Douglas plans on selling autographed souvenir rugs at the Olympics. Based on similar events, he has the following projected figures:

What selling price per rug would be needed to obtain a before-tax profit of $189,500 at a volume of 3,500 rugs?

a. $ 90.00

b. $110.00

c. $150.00

d. $170.00

e. $200.00

f. $230.00

g. $260.00

h. None of the above.

2. (1 point) The following information pertains to Butter, Inc. for the month of June:

Beginning work-in-process inventory $ 110,000

Ending work-in-process inventory $ 80,000

Cost of goods manufactured $ 350,000

Manufacturing overhead $ 170,000

If prime costs are 75% of conversion costs, what was the direct labor cost incurred for June? a.$112,500

b. $200,000

c. $90,000

d. $30,000

e. $20,000

f. $127,500

g. $150,000

h. None of the above

3. (1 point) Abbagnale Enterprises will ship all of the USA athletes’ gear to Russia for the Olympics. The company has the following historical information based on similar trips taken overseas:

Trip Nautical Miles Operating Costs

1 500,000 $356,000

2 580,000 $380,000

3 660,000 $420,000

What is the best estimate of total operating costs using the high-low method if the expected mileage for the trip to Russia is 590,000 miles?

a. $236,000

b. $375,455

c. $386,552

d. $386,441

e. $392,000

f. $391,977

g. $420,080

h. None of the above

4. (1 point) Jones Manufacturing reports that finished goods inventory was $14,000 on April 1 and $16,500 on April 30. Beginning and ending work-in-process inventories were $12,000 and $24,000, respectively. If cost of goods sold for the month of April was $80,000, what was the cost of goods manufactured during April?

a. $82,500

b. $49,500

c. $68,500

d. $77,500

e. $110,500

f. $92,000

g. $96,500

h. None of the above

5. (1 point) Cash Company has a predetermined overhead rate of $4 per machine hour. Last year the company incurred $112,400 of actual manufacturing overhead cost and the account was $4,200 over-applied. How many machine hours were used during the year?

a. 16,800 machine hours

b. 20,000 machine hours

c. 28,100 machine hours

d. 30,200 machine hours

e. 27,050 machine hours

f. 29,150 machine hours

g. 28,250 machine hours

h. None of the above.

Use the following information to answer the next two questions:

Fred’s Frozen Creations has been contracted to train the USA’s synchronized ice sculpting team. They have identified two different independent variables (ice sculpting hours and number of ice blocks used in training) in two different equations to evaluate the cost of training. The results of the two regressions are as follows:

SUMMARY OUTPUT – Sculpting hours

Regression Statistics

SUMMARY OUTPUT – Number of ice blocks

Regression Statistics

11. (1 point) Using the best cost driver, what is the estimated total cost of training these athletes if 12,300 sculpting hours are incurred and Fred’s uses 1,190 ice blocks during training? Assume these estimates are within the relevant range.

a. $27,275.35

b. $96,047.35

c. $272,705.78

d. $296,645.35

e. $270,584.35

f. $303,409.73

g. $309,957.00

h. None of the above

12. (2 points) Assume Fred’s Frozen Creations chooses to use the number of ice blocks to estimate the cost of training. Construct a 90% confidence interval for the cost of training when the number of ice blocks used is estimated at 1,300. Assume 1,300 ice blocks is within the relevant range. (Round all calculations to the nearest dollar)

a. ($223,240, $371,338)

b. ($211,035, $383,543)

c. ($227,601, $366,977)

d. ($196,535, $344,633)

e. ($207,844, $386,734)

f. ($189,817, $404,761)

g. ($223,499, $371,079)

h. None of the above.

Use the following information to answer the next two questions:

Holms Company has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Manufacturing overhead cost and direct labor hours were estimated at $400,000 and 80,000 hours, respectively, for the year. In May, Job #158 was completed at a cost of $6,000 in direct materials and $4,000 in direct labor. The labor rate is $8 per hour. By the end of the year, Holms had worked a total of 75,000 direct labor-hours and had incurred $365,500 actual manufacturing overhead cost.

18. (1 point) The total cost of Job #158 recorded on the completed job cost sheet would be: a.$ 8,500

b. $10,000

c. $11,600

d. $12,003

e. $12,667

f. $12,500

g. $14,000

h. None of the above

19. (1 point) Holms' manufacturing overhead for the year was:

a. $1,500 under-applied

b. $1,500 over-applied

c. $25,000 under-applied

d. $25,000 over-applied

e. $9,500 under-applied

f. $9,500 over-applied

g. $34,500 under-applied

h. $34,500 over-applied

i. None of the above