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1) which of the following accounts is debited when indirect labor is recorded?
a.work in process
b.salaries and wages expense
c.salaries and wages payable
d.manufacturing overhead
2) during august, sherill corporation incurred $78,000 of actual manufacturing overhead
costs. during the same period, the manufacturing overhead applied to work in process
was $81,000.
the cost of goods sold (after adjustment for underapplied or overapplied overhead) is:
a.$55,000
b.$51,000
c.$54,000
d.$56,000
3) lantagne corporation keeps careful track of the time required to fill orders. data
concerning a particular order appear below:
the delivery cycle time was:
a.10 hours
b.2.8 hours
c.25.2 hours
d.23.1 hours
4) in september, one of the processing departments at shenkel corporation had
beginning work in process inventory of $25,000 and ending work in process inventory
of $18,000. during the month, the cost of units transferred out from the department was
$304,000. in the department's cost reconciliation report for september, the total cost
accounted for would be:
a.$619,000
b.$644,000
c.$322,000
d.$43,000
5) manago corporation manufactures and sells a single product. the company uses units
as the measure of activity in its budgets and performance reports. during march, the
company budgeted for 5,300 units, but its actual level of activity was 5,310 units. the
company has provided the following data concerning the formulas to be used in its
budgeting:|
the net operating income in the planning budget for march would be closest to:
a.$11,705
b.$21,877
c.$21,710
d.$11,749
6) the accountant of ronier, inc., has prepared an analysis of a proposed capital project
using discounted cash flow techniques. one manager has questioned the accuracy of the
results because the discount factors employed in the analysis have assumed the cash
inflows occurred at the end of the year when the cash inflows actually occurred
uniformly throughout each year. the net present value calculated by the accountant:
a.will be in error and therefore not usable
b.will be slightly overstated but usable
c.will be slightly understated but usable
d.will produce an error the direction of which is undeterminable
7) deleston boat wash's cost formula for its cleaning equipment and supplies is $2,150
per month plus $21 per boat. for the month of september, the company planned for
activity of 79 boats, but the actual level of activity was 39 boats. the actual cleaning
equipment and supplies for the month was $3,110.
the cleaning equipment and supplies in the planning budget for september would be
closest to:
a.$3,110
b.$6,300
c.$2,969
d.$3,809
8) slovick inc., which produces a single product, has provided the following data for its
most recent month of operations:
there were no beginning or ending inventories.
the unit product cost under absorption costing was:
a.$161
b.$199
c.$262
d.$168
9) kuchler corporation has four products that use the same constrained resource. data
concerning those products appear below:
the company does not have enough of the constrained resource to satisfy for demand of
all four products.
if salespersons are paid commissions that are a set percentage of sales, which product
would they prefer to sell? in other words, if it is a choice between selling one unit of
one product and one unit of another, which product would they prefer to sell?
a.u300
b.u200
c.u100
d.u400
10) the following materials standards have been established for a particular product:
the following data pertain to operations concerning the product for the last month:
what is the materials price variance for the month?
a.$3,420 f
b.$3,720 f
c.$3,720 u
d.$3,420 u
11) fordham florist specializes in large floral bouquets for hotels and other commercial
spaces. the company has provided the following data concerning its annual overhead
costs and its activity based costing system:
the "other" activity cost pool consists of the costs of idle capacity and
organization-sustaining costs.
the amount of activity for the year is as follows:
what would be the total overhead cost per bouquet according to the activity based
costing system? in other words, what would be the overall activity rate for the making
bouquets activity cost pool? (round to the nearest whole cent.)
a.$1.58
b.$1.24
c.$1.93
d.$1.68
