Turnbull Company produces two products and their overhead consists of setups
$20,000; machining $2,220,000; and packing $80,000. Data for the current year follow:
The overhead allocated to Delta assuming a single overhead rate based on machine
hours and assuming ABC, respectively, are:
a. $1,856,000 and $1,878,000
b. $1,864,000 and $2,056,000
c. $1,856,000 and $1,842,000
d. $1,864,000 and $1,878,000
When using a standard costing system, which of the following should be recorded for
labor as a product is being made?
a. Debit wages payable for the actual hours of labor at the standard rate and credit work
in process for the actual hours worked at the standard rate
b. Debit payable wages for the standard hours at the standard rate and credit work in
process for the actual hours at the actual rate
c. Credit wages payable for the standard hours at the standard rate and debit work In
process for the standard hours at the actual rate
d. Credit wages payable for the actual hours at the actual rate and debit work in process
for the standard hours at the standard rate
When a customer requests a special order and the supplier has capacity constraints,
which of the following is most likely not an option for the customer?
a. Reject the special order.
b. Reduce the special order.
c. Accept the special order and cut back on normal production.
d. Accept the special order and fill it whenever capacity becomes available.
Which of the following items would be added to net income when using the indirect
method of calculating cash flows provided by operating activities?
a. An decrease in accounts payable
b. An decrease in prepaid expenses
c. A decrease in accrued revenues
d. A decrease in taxes payable
For each of the following measures that could be incorporated into a balanced
scorecard, identify which of the four balanced scorecard perspectives it would most
likely belong to.
a.Earnings per share
b.Prototype of redesigned product
c.Addition of athletic facility for employees
d.Number of customer complaints handled
e.Net sales
f.Number of new customers
g.Number of defective units identified in quality control division
h.Day care center on site
i.Professional development seminars conducted for sales staff
j.Recognized by local Chamber of Commerce as Business of the year
Oil to keep the factory machinery lubricated is an example of:
Brandi’s Bakery sells strawberry cakes for $15 each. Brandi’s variable costs are $5 and
her fixed costs total $3,000 per month. If Brandi’s tax rate is 25%, how many cakes
must Brandi sell each month if she wants to earn $6,000 in net income?
a. 1,200
b. 1,100
c. 900
d. 600
Which of the following terms are used in referring to common costs?
a. Allocated cost
b. Unavoidable costs
c. Both allocated cost and unavoidable costs.
d. Neither allocated cost nor unavoidable costs.
Which of the following is not one of the four balanced scorecard perspectives?
a. Learning and growth
b. Production
c. Customer
d. Financial
Wolfe Manufacturing Company has the following direct labor standards:
The following actual data has been provided by Wolfe:
Required:
a. Calculate the direct labor rate variance.
b. Calculate the direct labor efficiency variance.
Lights Out Motel is owned and operated by your mother’s neighbor. The motel manager
knows you are taking an accounting class and has asked you to help develop a balanced
scorecard for her. To stay competitive with larger chain motels, Lights Out needs to find
a way to advertise the amenities offered that larger chains may not have like garden
views from every window, fresh flowers in every room, and home cooked meals.
Required:
Identify two measures for each of the four balanced scorecard perspectives that will
help Lights Out achieve its strategy.
Learning and Growth perspective:
1>
2>
Internal Business Processes perspective:
1>
2>
Customer perspective:
1>
2>
Financial perspective
1>
2>
Complete each of the following contribution format income statements by supplying the
missing numbers.
Pro-forma financial statements are prepared using the information developed in the
budget process. These statements reflect the results of operations and the financial
position of the organization as if all actions planned in the budget had occurred. Many
of the master budget components provide direct input to the pro-forma financial
statements.
Required:
For each of the following components of the financial statements, indicate which
pro-forma financial statement will show the item (Income Statement or Balance Sheet)
and the budget within the master budget the item originated. Number 1 provides an
example.
Explain the difference between a leading indicator and a lagging indicator and give one
example of each relating to your performance in this class.
Compare and contrast strategic planning and operational planning.
Most companies use a combination of debt and equity to obtain the assets needed to
fund operations. Required: Discuss the advantages and disadvantages of using debt
versus equity financing.