1) eccles corporation uses a job-order costing system and applies overhead to jobs using
a predetermined overhead rate. during the year the company’s finished goods inventory
account was debited for $384,000 and credited for $325,900. the ending balance in the
finished goods inventory account was $72,100. at the end of the year, manufacturing
overhead was underapplied by $5,400.
the journal entry to record the allocation of any underapplied or overapplied overhead
for august would include the following:
a.debit to finished goods of $34,880
b.debit to finished goods of $1,250
c.credit to finished goods of $34,880
d.credit to finished goods of $1,250
2) details of the manufacturing activity in amy company’s assembly department for the
month of december are given below:
all materials are added at the beginning of processing in the assembly department.
the equivalent units for material for the month, using the weighted-average method, is:
a.81,000
b.90,000
c.70,000
d.80,000
3) lavell corporation reported the following data for the month of february:
the cost of goods manufactured for february was:
a.$171,000
b.$174,000
c.$183,000
d.$159,000
4) razor kennel uses tenant-days as its measure of activity; an animal housed in the
kennel for one day is counted as one tenant-day. during november, the kennel budgeted
for 3,000 tenant-days, but its actual level of activity was 3,010 tenant-days. the kennel
has provided the following data concerning the formulas used in its budgeting and its
actual results for november:
the spending variance for expendables in november would be closest to:
a.$240 f
b.$354 f
c.$240 u
d.$354 u
5) krouse corporation reports that at an activity level of 8,100 units, its total variable
cost is $509,652 and its total fixed cost is $197,316. what would be the total cost, both
fixed and variable, at an activity level of 8,400 units? assume that this level of activity
is within the relevant range.
a.$725,844
b.$706,968
c.$720,060
d.$733,152
6) worden hospital bases its budgets on patient-visits. the hospital’s static budget for
february appears below:
the total variable cost at the activity level of 4,400 patient-visits per month should be:
a.$85,140
b.$87,120
c.$65,120
d.$63,640
7) leeth corporation is considering the following six long-term projects:
only $50,100 is available for investment in these projects.
required:
a. determine which projects should be accepted.
b. determine the total net present value of all of the accepted projects if your plan from
part (a) above is adopted.
8) kramer company has total assets of $180,000 and total liabilities of $60,000. the
company’s debt-to-equity ratio is closest to:
a.0.25
b.0.33
c.0.50
d.0.67
9) anderton corporation has provided the following production and average cost data for
two levels of monthly production volume. the company produces a single product.
the best estimate of the total monthly fixed manufacturing cost is:
a.$391,200
b.$271,200
c.$656,400
d.$351,200
10) buffaloe corporation manufactures and sells a single product. the company uses
units as the measure of activity in its budgets and performance reports. during august,
the company budgeted for 5,200 units, but its actual level of activity was 5,250 units.
the company has provided the following data concerning the formulas used in its
budgeting and its actual results for august:
the manufacturing overhead in the flexible budget for august would be closest to:
a.$53,919
b.$55,525
c.$52,896
d.$55,460
11) the following direct labor standards have been established for product k62g:
the following data pertain to the most recent month’s operations during which 3,040
units of product k62g were made:
required:
a. what was the labor rate variance for the month?
b. what was the labor efficiency variance for the month?
c. prepare a journal entry to record direct labor costs during the month, including the
direct labor variances.
