DEVRY ACCT 505 FINAL EXAM ENTIRE EXAM COMPLETED.TWO EXAMS

(TCO F) Wahr Corporation bases its predetermined overhead rate on the estimated labor hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor hours for the upcoming year at 32,000. The estimated variable manufacturing overhead was $7.17 per labor hour and the estimated total fixed manufacturing overhead was $584,320. The actual labor hours for the year turned out to be 33,300.

Required:

Compute the company's predetermined overhead rate for the recently completed year. (Points : 25)

2. (TCO C) Enciso Corporation is preparing its cash budget for November. The budgeted beginning cash balance is $31,000. Budgeted cash receipts total $135,000 and budgeted cash disbursements total $141,000. The desired ending cash balance is $50,000. The company can borrow up to $100,000 at any time from a local bank, with interest not due until the following month.

The following overhead data are for a department of a large company.

                                                           Actual costs                  Static
                                                           Incurred                         budget

Activity level (in units)                           360                                340

Variable costs:
             Indirect materials                     $4,182                           $4,148
             Electricity                               $2,536                           $2,414
Fixed costs:
            Administration                          $6,540                           $6,500
            Rent                                        $6,310                           $6,400

Required:  Construct a flexible budget performance report that would be useful in assessing how well costs were controlled in this department.

(TCO D) Mr. Earl Pearl, accountant for Margie Knall, Inc. has prepared the following product-line income data:

The following absorption costing income statement and additional data are available from the accounting records of Bernon Co. for the month ended May 31, 2007. During the accounting period, 17,000 units were manufactured and sold at a price of $60 per unit. There were no beginning inventories