Archives

1) The following data are from Baker Company, a manufacturer, for the month of October: Compute the conversion costs. A.$167,500 B.$104,500 C.$140,500 D.$128,000 2) The Lucas Manufacturing Company has two production departments (fabrication and assembly) and three service departments (general […]

1) Which of the following is not a duty of the cost accountant in a process cost system? A.Estimating the stage of completion of in-process units at the end of the month B.Collecting the periodic production costs C.Preparing the journal […]

1) All of the following are examples of factory overhead costs that benefit the entire factory would therefore be difficult to identify with a specific department except: A.machine depreciation B.factory security C.the plant managers salary D.heating costs 2) Hebert & […]

1) The following information pertains to the Braun Company for March: Using the four-variance method of factory overhead variance analysis, what is the fixed overhead production-volume variance? A.$1,200 favorable B.$1,800 unfavorable C.$3,000 favorable D.$1,200 unfavorable 2) If a company using […]

1) In a four-variance method analyzing factory overhead, the fixed factory overhead production-volume variance measures: A.The difference between the actual fixed factory overhead and budgeted fixed factory overhead B.The difference between actual fixed factory overhead and the amount of fixed […]

1) The records of Andrews Company reflect the following data: Work in process, beginning of the month – 4,500 units; 1 / 3 completed at a cost of $2,400 for materials, $825 for labor, and $3,000 for overhead. Production costs […]

1) The controller has asked you to examine different distribution methods for applying factory overhead to the various production orders that are processed during a year. The following information was taken from the annual budget: Actual results for the year […]

1) Bellisimo Industries material handling costs and tons of material over a six-month period follow: Using the high-low method, what is the estimated material handling cost per ton of material? A.$.90 B.$1.25 C.$1.00 D.$.80 2) The Joan Company uses the […]

1) Thomas Company uses a standard cost system and recognizes the materials purchase price variance at the time materials are purchased. Information for raw materials for Product RBI for the month of October follows: What is the materials quantity variance? […]

1) All of the following are features of a standard cost system except: A.Standards change as conditions change B.Variances may be determined more often than monthly to allow for more timely action C.Standards are based on estimates D.The company determines […]

1) Lawrence and Louis Law Firm uses activity-based costing to determine the costs of its cases. Information about costs follow: The Laurel case required 60 professional hours, 20 of which were partner hours, and labor costs totaled $10,000. If direct […]

1) There are several advantages to using activity-based costing. Which of the following is one of these advantages? A.Services not performed in a department are allocated a portion of the cost of operating that department B.Each department can choose the […]

1) Bobbys Burger Place monitors its variances on an hourly basis. It is not uncommon for Bobby to send workers home early when which of the following variances indicates that he has over-scheduled the shift? A.Unfavorable labor efficiency variance B.Favorable […]

1) Payroll is debited and Wages Payable is credited to: A.Pay the payroll taxes B.Record the payroll C.Pay the payroll D.Distribute the payroll 2) A summary of Jacob Companys flexible budget of manufacturing costs follows: What would the flexible budget […]

1) Stan is the manager of a division that has been struggling lately. It is budget time and Stan feels he is under the gun to do well next year. As such, he is building slack into his budget. How […]

1) Under a modified wage plan, Jim Phillips works an eight-hour day and earns $.50 for each finished unit he produces in excess of 200 units. However, he is guaranteed $12.50 per hour as a minimum wage. His production this […]

1) Which of the following is not a key element of the Sarbanes Oxley Act to improve corporate governance? A.The establishment of the Public Company Accounting Oversight Board B.Requiring a companys annual report to contain an internal control report that […]

1) Factors to be considered in setting labor standards include all of the following except: A.Impact of negotiations with labor unions B.The learning effect C.Results of engineers time studies D.The purchasing managers estimate of suppliers prices 2) Listed below are […]

1) The accounting system used with JIT manufacturing is called: A.Backflush costing B.The push system C.Perpetual inventory costing D.First-in, first-out 2) If there is no beginning work in process inventory and the ending work in process inventory is 90 percent […]

1) The Columbus Company has three departments A, B and C. Material requisitions amounted to $10,000, $8,000 and $5,000, respectively, for departments A, B and C. In addition, $2,000 of indirect materials were used during the period. What is the […]