Which of the following is not an explanation for a favorable variable overhead spending
variance?
a. Paid less than expected for indirect material
b. Used variable overhead items efficiently
c. Paid less than expected for indirect labor
d. Efficient use of the activity base
Unit 6-4,
At the end of January, Monroe Industries had completed 65,000 units and left 8,000
units in Work In process, 60% complete with respect to materials and 80% complete
with respect to conversion. Conversion costs will be assigned to how many equivalent
units in the ending work in process inventory?
a. 1,600
b. 6,400
c. 4,800
d. 8,000
The time between an order’s placement and its shipment is referred to as
a. Delivery cycle time.
b. Production cycle time.
c. Sales order cycle time.
d. Throughput time.
Which of the following would be considered a product-level activity?
a. Quality tests
b. Engineering changes made in the assembly line
c. Machine set-up
d. None of these answer choices are correct.
Which of the following statements is
True?
a. If the segment margin is negative, the segment should be retained.
b. If the segment margin is negative, it should remain in operation until a better use can
be found for its resources.
c. If the segment margin is negative, it should file for bankruptcy.
d. If the segment margin is negative, the operation should be dropped.
In applying the Standards of Ethical Professional Practice, when faced with ethical
issues, you should
a.Follow your organization ‘s established policies on the resolution of such conflict.
b.Hire a professional investigator to resolve the conflict.
c.Contact the authorities immediately.
d.Ignore the conflict to give it time to resolve itself.
Which of the following strategies relate to the customer perspective?
a. Manage customer relationships and develop reputation for quick turnaround
b. Retain and grow customer base and develop reputation for quick turnaround
c. Manage customer relationships and retain and grow customer base
d. Develop reputation for quick turnaround and manage customer relationships
Which of the following would not be a selling expense?
a. Rent on warehouse space
b. Advertising on local TV station
c. Indirect labor
d. Depreciation on delivery truck
GAAP “rules” govern how transactions are
a.Valued.
b.Recorded.
c.Presented.
d.All of these answer choices are correct.
In preparing cash flows provided by operating activities using the indirect method,
which of the following items is added to net income?
a. Cash received from the sale of property, plant and equipment
b. Losses on investing and financing transactions
c. Increases in current asset balances
d. Decreases in current liability balances
The time from the start of a production to the shipment of the product to the customer is
referred to as
a. Manufacturing cycle time.
b. Throughput time.
c. Delivery cycle time.
d. Either Manufacturing cycle time or Throughput time, but not delivery cycle time.
Camilla, Inc. uses activity-based costing to cost its two products: Standard and Deluxe.
The company has provided the following data relating to its activities:
Required:
a. What is the activity rate for the sales cost pool?
b. If actual activity is the same as that estimated, what is the total amount of overhead
cost allocated to the Deluxe product?
The ratio of value-added processing time to total manufacturing cycle time is referred to
as
a. Manufacturing cycle efficiency.
b. Manufacturing cycle ratio.
c. Throughput efficiency.
d. Delivery cycle ratio.
Assuming an 6% discount rate, the present value of a $22,000 payment received in 3
years is
a. $18,472
b. $23,812
c. $25,123
d. $32,947
Which of the following is not a step in preparing the manufacturing overhead budget?
a. Enter the total estimated overhead from the previous period.
b. Calculate the variable overhead cost per period using the variable rate and the
budgeted activity base.
c. Subtract the non-cash overhead items from the total overhead cost to determine cash
payments for overhead.
d. All of these answer choices are steps in preparing the manufacturing overhead
budget.
Lochte Inc. has collected the following data concerning one of its products:
The markup percentage is
a. 20.69%.
b. 22.59%.
c. 25%.
d. 26.09%.
Avery Manufacturing has the following sales budgets for the fourth quarter.
The accounting manager has analyzed cash collections and determined that credit sales
are collected 70% in the month of sale, 20% in the month following the sale, and 10%
in the 2nd month following sale. How much cash will Avery collect in December?
a. $1,154,790
b. $1,178,080
c. $898,990
d. $1,205,600
Estimated costs for activity cost pools and other item(s) are as follows:
Total estimated overhead is
a. $1,000,000.
b. $1,175,000.
c. $1,450,000.
d. $1,625,000.
Sunk cost are classified as
a. Irrelevant.
b. Avoidable.
c. Opportunity.
d. None of these answer choices are correct.