1) which of the following should be considered a structural cost driver?
a.scale
b.experience
c.complexity
d.technology
e.all of the above
2) moss point manufacturing recently completed and sold an order of 50 units that had
the following costs:
* applied on the basis of direct labor hours
the company has now been requested to prepare a bid for 150 units of the same product.
required: if an 80 percent learning curve is applicable, estimate moss point’s total cost
on this order.
3) east bay fisheries inc. processes king salmon for various distributors. two
departments are involved processing and packaging. data relating to tons of king
salmon processed in the processing department during june 2013 are provided below:
total equivalent units for conversion under the fifo method are calculated to be:
a.6,560 equivalent units
b.8,180 equivalent units
c.6,420 equivalent units
d.7,140 equivalent units
e.7,320 equivalent units
4) framing house, inc. produces and sells picture frames. variable costs are expected to
be $17 per frame; fixed costs for the year are expected to total $130,000. the budgeted
selling price is $25 per frame.
the sales units required by framing house to make a before-tax profit of $15,000 are
calculated to be:
a.16,850 units
b.11,625 units
c.20,675 units
d.28,350 units
e.18,125 units
5) which of the following is not a phase of the departmental approach?
a.trace all direct manufacturing costs
b.allocate the production department costs to the products
c.allocate overhead costs to direct costs
d.allocate the service department costs to the production departments
6) when completed units are transferred to the warehouse:
a.cost of goods sold account is debited
b.cost of goods manufactured account is debited
c.finished goods inventory account is debited
d.work-in-process inventory account is debited
e.finished goods inventory account is credited
7) the sales and cost data for two companies in the transportation industry are as
follows:
y company’s margin of safety (mos) in sales dollars is calculated to be (rounded):
a.$9,231
b.$28,343
c.$30,000
d.$17,143
e.$57,000
8) audio zone co. needs to prepare pro forma financial statements for the next fiscal
year. to do so, the company must forecast its total overhead cost. the actual machine
hours and total overhead cost are presented below for the past six months.
using the high-low method, total monthly fixed overhead cost is calculated to be:
a.$2,626
b.$2,698
c.$2,512
d.$2,907
e.$2,833
9) which of the following is normally considered to be a product cost?
a.insurance on a factory building
b.selling expenses
c.president’s salary
d.miscellaneous office expense
10) in measuring the variable cost per unit, cvp analysis includes:
a.only variable production costs
b.only variable distribution and selling costs
c.both variable production and variable selling/distribution costs
d.only variable and semi-variable production costs
11) wang company has established the following overhead cost pools and cost drivers
for the month of may:
the following information pertains to the actual consumption of activity resources for
two sample jobs completed during may.
using abc, what is the overhead cost per unit produced for job m2?
a.$39
b.$25
c.$20
d.$12
e.$10
12) joint products are products that:
a.have minor total sales value
b.have substantial sales value
c.come from different production processes
d.are marketed in a joint marketing program
13) randall company manufactures products to customer specifications. a job costing
system is used to accumulate production costs. factory overhead cost was applied at
125% of direct labor cost. selected data concerning the past year’s operation of the
company are presented below.
the cost of goods sold (before adjustment for under or overapplied overhead) is:
a.$850,000
b.$348,000
c.$867,000
d.$835,000
e.$811,000
14) barstow manufacturing company has two service departments product design and
engineering support, and two production departments assembly and finishing. the
distribution of each service department’s efforts to the other departments is shown
below:
the direct operating costs of the departments (including both variable and fixed costs)
were as follows:
the total cost accumulated in the finishing department using the reciprocal method
is(calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and
round all dollar amounts to the nearest whole dollar):
a.$1,890,000
b.$627,143
c.$682,551
d.$1,062,857
e.$1,007,449