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ConceptsCoach, Certified Public Accountant (CPA)
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Experience:  Chartered Accountant and MBA
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1. Which of the following is not a difference between financial

Resolved Question:

1. Which of the following is not a difference between financial accounting and managerial accounting?
A) Financial accounting is primarily concerned with reporting the past, while managerial accounting is more concerned with the future.
B) Managerial accounting uses more nonmonetary information than is used in financial accounting.
C) Managerial accounting is primarily concerned with providing information for external users while financial accounting is concerned with internal users.
D) Financial accounting must follow GAAP while managerial accounting is not required to follow GAAP.

2. Variable cost per unit:
A) increases when the number of units produced increases.
B)does not change when the number of units produced increases.
C) decreases when the number of units produced increases.
D)decreases when the number of units produced decreases.

3. 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
A) the trip to Cancun that you will not be able to take if you buy the car
B)the cost of the car you are trading in
C)the cost of your books for this term
D)the cost of your car insurance last year

4. Shula’s 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. What is the budgeted total variable cost?
A) $5,200
B)$9,280
C)$10,080
D)$2,300

5. Which of the following costs is not part of manufacturing overhead?
A)electricity for the factory
B)depreciation of factory equipment
C)salaries for the production supervisors
D)health insurance for sales staff


6. Which of the following is not a period cost?
A)advertising costs
B)accounting staff salaries
C)direct materials
D)depreciation of accounting office equipment

7. Red Runner’s Work in Process Inventory account has a beginning balance of $50,000 and an ending balance of $40,000. Direct materials used are $70,000 and direct labor used totals $35,000. Cost of goods sold totals $135,000. Manufacturing overhead applied is $20,000. How much is cost of goods manufactured?
A)$145,000
B)$115,000
C)$125,000
D)$135,000


8. BCS Company applies manufacturing overhead based on direct labor cost. Information concerning manufacturing overhead and labor for August follows:

Estimated Actual
Overhead cost $174,000 $171,000
Direct labor hours 5,800 5,900
Direct labor cost $87,000 $89,975



How much is the predetermined overhead rate?
A)$2.00
B)$1.90
C)$30.00
D)$1.93

9. During 2011, Magus 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 $1,700,000.

What is the amount of under or over applied overhead for the year?
A)$100,000 underapplied
B)$20,000 underapplied
C)$100,00 overapplied
D)$120,000 underapplied

10.Companies in which of the following industries would not be likely to use process costing?
A)cereals
B)paints
C)cosmetics
D)auto body shop

11. Caliente Company uses process costing. At the beginning of the month, there were 3,000 units in process, 70% complete with respect to material and 60% complete with respect to conversion costs. 20,000 units were started during the month and 20,000 units were completed. The units in ending work in process inventory were 90% complete with respect to material and 30% complete with respect to conversion costs. How many equivalent units will be used in calculating the cost per unit for materials?
A)22,700
B)23,000
C)9,700
D)18,300


12.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?
A)$8.71
B)$7.84
C)$11.19
D)$9.79


13. 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?
A)$4,400
B)$6,580
C)$3,600
D)$8,800

1. The margin of safety is the difference between
B)expected level of sales and the break-even point.
C)budgeted fixed costs and actual fixed costs.
D)selling price and variable cost per unit.

2. 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?
A)$1,105,000
B)$282,880
C)$1,060,800
D)$208,476

3. 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?
A)$468,140
B)$124,025
C)$700,975
D)$405,000

4. In variable costing, when does fixed manufacturing overhead become an expense?
A)Never
B)In the period when the product is sold
C)In the period when the expense is incurred
D)In the period when other expenses are at the lowest level

5. Which of the following items on a variable costing income statement will change in direct proportion to a change in sales?
A)Sales, contribution margin, fixed costs
B)Sales, variable costs, contribution margin
C)Sales, variable costs, contribution margin, fixed costs
D)Sales, variable costs, and fixed costs

6. Peak Manufacturing produces snow blowers. The selling price per snow blower is $100. Costs involved in production are:

Direct Material per unit $20
Direct Labor per unit 12
Variable manufacturing overhead per unit 10
Fixed manufacturing overhead per year $148,500


In addition, the company has fixed selling and administrative costs of $150,000 per year. During the year, Peak produces 45,000 snow blowers and sells 30,000 snow blowers. How much is cost of goods sold using full costing?
A)$1,359,000
B)$1,260,000
C)$2,038,500
D)$1,408,500

7. Which of the following is not a reason that companies allocate costs?
A)To calculate the full cost of products for financial reporting purposes
B)To discourage managers from using external suppliers
C)To reduce the frivolous use of company resources
D)To provide information needed by managers to make appropriate decisions

8. An allocation base:
A)Is the minimum amount to be allocated to a cost object.
B)coordinates the manufacturing overhead costs as they are incurred.
C)will always be less than the variable costs for a product.
D)relates the cost pool to the cost objectives.

9. Sierra Company allocates the estimated $200,000 of its accounting department costs to its production and sales departments because the accounting department supports the other two departments, particularly with regard to payroll and accounts payable functions. The costs will be allocated based on the number of employees using the direct method. Information regarding costs and employees follows:

Department Employees
Accounting 4
Production 36
Sales 12



How much of the accounting department costs will be allocated to the production and sales departments?
A) Production: $150,000 Sales: $50,000
B)Production: $180,000 Sales: $60,000
C) Production: $1,800,000 Sales: $600,000
D)Production: $22,222 Sales: $66,667

10. A company is currently making a necessary component in house (the company is producing the component for its own use). The company has received an offer to buy the component from an outside supplier. A machine is being rented to make the component. If the company were to buy the component, the machine would no longer be rented. The rent on the machine, in relation to the decision to make or buy the component, is:
A)sunk and therefore not relevant.
B)avoidable and therefore not relevant.
C)avoidable and therefore relevant.
D)unavoidable and therefore relevant.

11. Ricket Company has 1,500 obsolete calculators that are carried in inventory at a cost of $13,200. If these calculators are upgraded at a cost of $9,500, they could be sold for $22,500. Alternatively, the calculators could be sold "as is" for $9,000. What is the net advantage or disadvantage of reworking the calculators?
A)$13,000 advantage
B)$4,000 advantage
C)$9,200 disadvantage
D)$200 disadvantage
12. 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?
A)$160 per unit
B)$10 per unit
C)$125 per unit
D)$100 per unit
Submitted: 3 years ago.
Category: Finance
Expert:  ConceptsCoach replied 3 years ago.

1. C) Managerial accounting is primarily concerned with providing information for external users while financial accounting is concerned with internal users.

 

2. B)does not change when the number of units produced increases.

 

3. A) the trip to Cancun that you will not be able to take if you buy the car

 

4. B)$9,280

 

5. D)health insurance for sales staff

 

6. C)direct materials

 

7. D)$135,000

 

8. A)$2.00

 

9. B)$20,000 underapplied

 

10. C)cosmetics

 

11. A)22,700

 

12. $9.79

 

13. C)$3,600

 

 

1. B)expected level of sales and the break-even point.

 

2. A)$1,105,000

 

3. B)$124,025

 

4. C)In the period when the expense is incurred

 

5. B)Sales, variable costs, contribution margin

 

6. D)$1,408,500

 

7. B)To discourage managers from using external suppliers

 

8.D)relates the cost pool to the cost objectives.

 

9. A) Production: $150,000 Sales: $50,000

 

10. C)avoidable and therefore relevant.

 

11. A)$13,000 advantage

 

12. A)$160 per unit

 

 

Hope this helps in your study.

 

Please note that DEPOSIT does not mean payment and you need to click GREEN button so that I get paid. A bonus would not be out of line considering the amount of work involved.

ConceptsCoach, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 437
Experience: Chartered Accountant and MBA
ConceptsCoach and 2 other Finance Specialists are ready to help you
Customer: replied 3 years ago.
im sorry its a different one can you answer these:
3. (TCO 1) A retailer purchased some trendy clothes that have gone out of style and must be marked down to 40% of the original selling price in order to be sold. Which of the following is a sunk cost in this situation? (Points: 4)
the current selling price
the original selling price
the original purchase price
the anticipated profit


4. (TCO 1) Shula’s 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. What is the budgeted fixed cost per unit? (Points: 4)
$1.06
$1.44
$4.49
$1.94


5. (TCO 1) Which of the following costs is part of manufacturing overhead? (Points: 4)
indirect labor
direct labor
salaries for the accounting personnel
wages for the janitorial staff for the sales offices


6. (TCO 1) Which of the following is a period cost? (Points: 4)
rent on a factory building
depreciation on production equipment
raw materials cost
commissions paid on each unit sold


7. (TCO 1) Red Runner’s Work in Process Inventory account has a beginning balance of $50,000 and an ending balance of $40,000. Direct materials used are $70,000 and direct labor used totals $35,000. Cost of goods sold totals $135,000. Manufacturing overhead applied is $20,000. How much is cost of goods manufactured? (Points: 4)
$145,000
$115,000
$125,000
$135,000


8. (TCO 2) Lanking Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for August follows:

Estimated

Actual

Overhead cost

$160,000

$161,000

Direct labor hours

8,000

8,200

Direct labor cost

$120,000

$115,800



How much is the predetermined overhead rate? (Points: 4)
$1.33
$20.00
$1.03
$19.63


9. (TCO 2) Citrus Company incurred manufacturing overhead costs of $300,000. Total overhead applied to jobs was $306,000. What was the amount of overapplied or underapplied overhead? (Points: 4)
$7,000 overapplied
$6,000 overapplied
$6,000 underapplied
$13,000 underapplied


10. (TCO 3) Companies in which of the following industries would not be likely to use process costing? (Points: 4)
cereals
paints
cosmetics
auto body shop


11. (TCO 3) The Blending Department began the period with 20,000 units. During the period the department received another 80,000 units from the prior department and at the end of the period 30,000 units remained, which were 40% complete. How much are equivalent units in The Blending Department’s work in process inventory at the end of the period? (Points: 4)
12,000
28,000
40,000
52,000


12. (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? (Points: 4)
$8.71
$7.84
$11.19
$9.79


13. (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? (Points: 4)
$4,400
$6,580
$3,600
$8,800
1. (TCO 4) The margin of safety is the difference between (Points: 4)
total revenue and total fixed costs.
expected level of sales and the break-even point.
budgeted fixed costs and actual fixed costs.
selling price and variable cost per unit.


2. (TCO 4) Werth Company produces tie racks. The estimated fixed costs for the year are $288,000, and the estimated variable costs per unit are $14. Werth expects to produce and sell 60,000 units at a price of $20 per unit. How much is the break-even point in units? (Points: 4)
48,000
72,000
3,600
8,471


3. (TCO 4) Randy Company produces a single product that is sold for $85 per unit. If variable costs per unit are $26 and fixed costs total $47,500, how many units must Randy sell in order to earn a profit of $100,000? (Points: 4)
1,735
618
890
2,500


4. (TCO 5) Which of the following is treated differently in full costing than in variable costing? (Points: 4)
Direct materials
Fixed manufacturing overhead
Direct labor
Variable manufacturing overhead


5. (TCO 5) Variable costing income is a function of: (Points: 4)
Units sold only.
Units produced only
Both units sold and units produced.
Neither units sold nor units. produced


6. (TCO 5) Peak Manufacturing produces snow blowers. The selling price per snow blower is $100. Costs involved in production are:

Direct Material per unit

$20

Direct Labor per unit

12

Variable manufacturing overhead per unit

10

Fixed manufacturing overhead per year

$148,500



In addition, the company has fixed selling and administrative costs of $150,000 per year. During the year, Peak produces 45,000 snow blowers and sells 30,000 snow blowers. How much is cost of goods sold using full costing? (Points: 4)
$1,359,000
$1,260,000
$2,038,500
$1,408,500




7. (TCO 6) Which of the following is not a reason that companies allocate costs? (Points: 4)
To calculate the full cost of products for financial reporting purposes
To discourage managers from using external suppliers
To reduce the frivolous use of company resources
To provide information needed by managers to make appropriate decisions


8. (TCO 6) Which of the following statements about cost pools is not
true? (Points: 4)
The costs in each of the cost pools should be homogeneous or similar.
Managers must make a cost-benefit decision when determining how many cost pools are appropriate.
Only four different kinds of costs may be included in a single cost pool.
More cost pools usually provide more accurate information, but are more expensive.


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.

Department

Copies

Purchasing

250,000

Accounting

300,000

Information Tech

425,000




If cost allocations are computed to four significant digits and the purchasing department makes 58,000 copies this year, how much overhead will be allocated to purchasing? (Points: 4)
$4,185
$4,624
$77,750
$1,073


10. (TCO 7) A company is trying to decide whether to sell partially completed goods in their current state or incur additional costs to finish the goods and sell them as complete units. Which of the following is not relevant to the decision? (Points: 4)
The selling price of the completed units.
The costs incurred to process the units to this point.
The selling price of the partially completed units.
The costs that will be incurred to finish the units.


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)
$6,300 advantage
$1,200 disadvantage
$5,400 disadvantage
$3,000 advantage


12. (TCO 7) Olde Store has 12,000 cans of crab meat just a week past the expiration date. Each can cost $0.31. The cans could be sold as is for $0.20 each, or relabeled and sold as gourmet cat food. The cost of relabeling the cans would be $0.04 per can and the cans would then sell for $0.29 per can. What should be done with the cans and why? (Points: 4)
The cans should be thrown away since there will be a loss with the other alternatives.
The cans should be relabeled into cat food since the sales price increases $0.09 per can and the cost is only $0.04 per can.
The cans should be put on clearance since there is no reason to put more money into something that is already selling below cost.
It doesn’t matter what you do since all alternatives result in a loss.
Expert:  ConceptsCoach replied 3 years ago.

Could you pls post this as a new question and mark it "For CC" at the start so that I can answer it.

 

Thanks

Customer: replied 3 years ago.
Ok its due in less than an hour thank you so much!!!
Customer: replied 3 years ago.
Are you able to finish within a hour?

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