In a networked system, the server stores the program and the data.
Journalize the following transactions for Malone Custom Furniture Manufacturing:
a. Incurred and paid advertising expenses, $3,500.
b. Incurred manufacturing wages of $30,000, 60% of which was direct labor and 40%
of which was indirect labor.
c. Purchased raw materials on account, $27,000.
d. Used in production: direct materials, $12,000; indirect materials,$5,500
e. Recorded manufacturing overhead: depreciation on plant, $14,000; plant insurance
(previously paid), $1,800; plant property tax, $4,500 (credit Property Tax Payable).
f. Allocated manufacturing overhead to jobs, 150% of direct labor costs.
g. Completed production on jobs with costs of $55,000.
h. Sold inventory on account, $64,000; cost of goods sold, $35,000.
i. Adjusted for overallocated or underallocated overhead.
Orlando Avionics makes three types of radios for small aircraft-Model A, Model B, and
Model C. The manufacturing operations are mechanized, and there is no direct labor.
Manufacturing overhead costs are significant, and Orlando has adopted an
activity-based costing system. Direct materials costs per unit for each model are as
follows:
Model A $20
Model B $33
Model C $36
Orlando has three activities-assembly, materials management, and testing. The cost
driver for assembly is machine hours. The cost driver for materials management is the
number of parts, and the cost driver for testing is the number of units of product. Total
costs and production volumes for the year were estimated as follows:
The Model A radio requires 12 parts to construct and 20 machine hours of processing.
What is the manufacturing cost to make one unit of Model A? (Round any intermediate
calculations to the nearest cent, and your final answer to the nearest dollar.)
A) $168
B) $44
C) $152
D) $172
The flexible budget variance is the difference between the ________.
A) actual results and the expected results in the flexible budget for the actual units sold
B) expected results in the flexible budget for the units expected to be sold and the static
budget
C) flexible budget and actual amounts due to differences in volumes
D) flexible budget and static budget due to differences in fixed costs
In process costing, factory rent and utilities are debited to the ________.
A) Work-in-Process Inventory account
B) Manufacturing Overhead account
C) Finished Goods Inventory account
D) Cost of Goods Sold account
Norton Manufacturing expects to produce 2,900 units in January and 3,600 units in
February. Norton budgets $20 per unit for direct materials. Indirect materials are
insignificant and not considered for budgeting purposes. The balance in the Raw
Materials Inventory account (all direct materials) on January 1 is $38,650. Norton
desires the ending balance in Raw Materials Inventory to be 10% of the next month’s
direct materials needed for production. Desired ending balance for February is $51,100.
What is the cost of budgeted purchases of direct materials needed for January?
A) $58,000
B) $65,200
C) $26,550
D) $25,150
Sybil, Inc. uses a predetermined overhead allocation rate to allocate manufacturing
overhead costs to jobs. The company recently completed Job 300X. This job used 11
machine hours and 5 direct labor hours. The predetermined overhead allocation rate is
calculated to be $43 per machine hour. What is the amount of manufacturing overhead
allocated to Job 300X using machine hours as the allocation base?
A) $473
B) $215
C) $688
D) $258
The management of Vert Lawnmowers has calculated the following variances:
When determining the total production cost flexible budget variance, what is the total
manufacturing overhead variance of the company?
A) $5,000 F
B) $8,500 F
C) $3,000 F
D) $11,500 F
The following information has been provided by Squash Corporation:
The beginning balance of Work-in-Process Inventory account was ________.
A) $4,500
B) $5,000
C) $21,000
D) $9,400
A sales journal is ________.
A) a special journal used to record all the cash sales
B) used to record the sales of assets other than merchandise inventory
C) a special journal used to record credit sales
D) a general journal used to record the adjustments in revenue account
Maroon, Inc. uses a standard cost system. On December 31, the last day of the
accounting period, the account balances include the following:
What is the standard net operating income of the company for the year ended December
31?
A) $8,780
B) $6,290
C) $8,470
D) $7,530
Which of the following amounts of a flexible budget remains constant, within the
specified relevant range, when the sales volume changes?
A) total contribution margin
B) total fixed costs
C) total variable costs
D) total sales revenue