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1) based on analyzing the relationship of total factory overhead (y) to direct labor hours
(x). the following relationship was found:
y = $1,000 + $2x
the equation was probably found through the use of which of the following
mathematical techniques?
a.linear programming
b.multiple regression analysis
c.simple regression analysis
d.excel tools
e.nonlinear regression
2) an good example of a software system(s) that can be used to prepare job cost reports
is:
a.oracle
b.microsoft access
c.there are a variety of software systems, often designed specifically for a particular
industry
d.microsoft excel
e.none of the above
3) wings co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours,
and had the following manufacturing overhead:
using abc, the materials handling overhead cost assigned to job #971 is:
a.$2,300
b.$990
c.$6,500
d.$690
e.$1,020
4) calculating the margin of safety (mos) measure will help a firm answer which of the
following questions?
a.will we break even?
b.are we using our debt wisely?
c.how much will profits change if sales change?
d.how much profit will we earn?
e.how much revenue can we lose before we drop below the breakeven point?
5) walman corp. manufactures products x, y, and z from a joint production process.
joint costs are allocated to products on the basis of relative sales value at the split-off
point. additional information is as follows:
based solely on a relevant cost analysis, which of the three products should be
manufactured by walman beyond the split-off point?
a.only x
b.only y
c.only z
d.only y and z
e.all three products: x, y and z
6) cost allocation of shared facilities cost is intended to remind managers of:
a.the cost of using a shared resource
b.both the cost and value of using shared resources
c.how much capacity a firm has
d.why the firm invests in these facilities
e.how dependent the managers are for these facilities
7) in situations when management must decide on accepting or rejecting one-time-only
special orders, where there is sufficient idle capacity, which one of the following is not
relevant to the decision?
a.absorption costs
b.differential costs
c.direct costs
d.variable costs
e.incremental costs
8) orange, inc. has identified the following cost drivers for its expected overhead costs
for the year:
total direct labor hours budgeted = 2,000 hours.
the following data applies to one of the products completed during the year:
if orange, inc. uses direct labor hours to assign overhead, the unit product cost for
product x will be:
a.$60.00
b.$70.00
c.$80.00
d.$90.00
e.$180.00
9) shaver co. manufactures a variety of electric razors for men and women. the
company's plant is partially automated. listed below is cost driver information used in
the product-costing system:
in addition, shaver expects to spend $514,368 for 8,037 direct labor-hours. two current
product orders had the following requirements:
using abc, how much batch-level overhead is assigned to the current order for women's
razors based on pounds of raw materials?
a.$6,000
b.$6,880
c.$5,332
d.$8,175
e.$9,374
10) a special sales order is:
a.typically expected
b.a profitable opportunity to sell a specified quantity of a firm's product or service
c.a one-time opportunity to sell a specified quantity of a product or service
d.a particularly large customer order
e.in most cases, a rush order
11) the blade division of dana company produces hardened steel blades. approximately
one-third of the blade division's output is sold to the lawn products division of dana; the
remainder is sold to outside customers. the blade division's estimated sales and cost data
for the year ending june 30 are as follows:
the lawn products division has an opportunity to purchase 10,000 identical quality
blades from an outside supplier at a cost of $1.25 per unit on a continual basis. assume
that the blade division cannot sell any additional products to outside customers. based
solely on short-term financial considerations, should dana allow its lawn products
division to purchase the blades from the outside supplier, and why?
a.yes, because buying the blades would save dana company $500
b.no, because making the blades would save dana company $1,500
c.yes, because buying the blades would save dana company $2,500
d.no, because making the blades would save dana company $2,500
12) which of the following characteristics applies to process costing but not to job
costing?
a.identifiable batches of production
b.average costs
c.equivalent units
d.application of overhead
e.use of standard costs
13) talamoto co. manufactures a single product that goes through two processes mixing
and cooking. the following data pertains to the mixing department for september.
material p is added at the beginning of work in the mixing department. material q is also
added in the mixing department, but not until units of product are forty percent
completed with regard to conversion. conversion costs are incurred uniformly during
the process.
total equivalent units for material q under the weighted-average method are calculated
to be:
a.104,000 equivalent units
b.71,600 equivalent units
c.85,400 equivalent units
d.72,000 equivalent units
e.94,000 equivalent units
14) graham corporation's budgeted production schedule for the coming year is as
follows:
quarter 1 = 22,500 units
quarter 2 = 19,000 units
quarter 3 = 17,000 units
quarter 4 = 24,000 units
each unit of product requires three pounds of direct material. the company's policy is to
begin each quarter with 30% of that quarter's direct materials production requirements.
graham expects to have 50,000 pounds of direct materials on hand at the beginning of
quarter 1 .
what would be graham's budgeted direct materials purchases in the second quarter?
a.53,850 pounds
b.55,200 pounds
c.57,000 pounds
d.58,800 pounds
e.72,300 pounds
15) sutherland company listed the following data for 2013:
if overhead is applied based on machine hours, the overapplied/underapplied overhead
is:
a.$187,298 underapplied
b.$187,298 overapplied
c.$176,358 underapplied
d.$176,358 overapplied
e.$-0-
16) which of the following is a batch-level cost driver?
a.output units
b.number of engineering change orders
c.number of materials handling transactions
d.square feet of plant area occupied
e.number of employees
