Beruflich Dokumente
Kultur Dokumente
Part
Points
Name ___________________________
Instructor ________________________
Section # _________ Date __________
II
III
IV
Total
60
18
19
14
14
125
Score
1. A responsibility center that incurs costs (and expenses) and generates revenues is
classified as a(n)
a. cost center.
b. revenue center.
c. profit center.
d. investment center.
____
____
3. Ramsey Corporation desires to earn target net income of $90,000. If the selling price
per unit is $30, unit variable cost is $24, and total fixed costs are $360,000, the
number of units that the company must sell to earn its target net income is
a. 30,000.
b. 75,000.
c. 45,000.
d. 60,000.
____
4. Shane Corporation uses a process cost accounting system. Given the following data,
compute the number of units transferred out during the current period.
Beginning Work in Process
Ending Work in Process
Started into Production
a.
b.
c.
d.
125,000
141,667
145,000
150,000
FE- 2
____
____
6. The following data has been collected for use in analyzing the behavior of maintenance costs of Ridell Corporation:
Month
January
February
March
April
May
June
July
Maintenance Costs
$121,000
125,000
128,000
159,000
168,000
178,000
181,000
Machine Hours
20,000
23,000
24,000
34,000
36,000
38,000
40,000
Using the high-low method to separate the maintenance costs into their variable and
fixed cost components, these components are
a. $5 per hour plus $20,000.
b. $5 per hour plus $30,000.
c. $4 per hour plus $41,000.
d. $3 per hour plus $61,000.
____
7. Given the following information for Hett Company, compute the company's ROI: Sales
$1,000,000; Controllable Margin $120,000; Average Operating Assets
$500,000.
a. 40%
b. 50%
c. 12%
d. 24%
____
8. Given the following data for Glennon Company, compute (A) total manufacturing costs
and (B) costs of goods manufactured:
Direct materials used
Direct labor
Manufacturing overhead
Operating expenses
a.
b.
c.
d.
(A)
$310,000
$320,000
$320,000
$330,000
$120,000
50,000
150,000
175,000
(B)
$330,000
$310,000
$330,000
$340,000
$20,000
10,000
25,000
15,000
Final Exam
____
FE- 3
9. The production cost report shows both quantities and costs. Costs are reported in
three sections: (1) costs accounted for, (2) unit costs, and (3) costs charged to
department. The sections are listed in the following order:
a. (1), (2), (3).
b. (1), (3), (2).
c. (2), (1), (3).
d. (2), (3), (1).
____ 10. The starting point of a master budget is the preparation of the
a. cash budget.
b. sales budget.
c. production budget.
d. budgeted balance sheet.
____ 11. The most useful measure for evaluating the performance of the manager of an
investment center is
a. contribution margin.
b. controllable margin.
c. return on investment.
d. income from operations.
____ 12. Which of the following capital budgeting techniques explicitly takes the time value of
money into consideration?
a. Annual rate of return
b. Internal rate of return
c. Net present value
d. Both (b) and (c) above
____ 13. The cost classification scheme most relevant to responsibility accounting is
a. controllable vs. uncontrollable.
b. fixed vs. variable.
c. semivariable vs. mixed.
d. direct vs. indirect.
Use the following information for questions 14 and 15.
Grant Company estimates its sales at 60,000 units in the first quarter and that sales will increase
by 6,000 units each quarter over the year. It has, and desires, a 25% ending inventory of finished
goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay
within the quarter. The remainder is received in the quarter following sale.
____ 14. Cash collections for the third quarter are budgeted at
a. $1,017,000.
b. $1,476,000.
c. $1,773,000.
d. $2,052,000.
____ 15. Production in units for the third quarter should be budgeted at
a. 73,500.
b. 69,000.
c. 91,500.
d. 72,000.
FE- 4
____ 16. Stine Company incurs the following costs in producing 50,000 units of product:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
$100,000
50,000
100,000
300,000
An outside supplier has offered to supply the 50,000 units at $7.00 each. All of Stine's
related variable costs, but only $200,000 of the fixed costs would be eliminated if the
offer is accepted. Acceptance will result in a
a. savings of $200,000.
b. loss of $100,000.
c. savings of $100,000.
d. loss of $200,000.
____ 17. Finney Company has a production process where two products result from a joint
processing procedure; both can be sold immediately or processed further. Given the
following additional per unit information, determine which of the products should be
processed further.
Product
A
B
a.
b.
c.
d.
Allocated
Joint Cost
$100
60
Selling Price
$200
100
Additional
Processing Cost
$180
50
New
Selling Price
$400
160
A
B
Both
Neither
Liquidity
Inventory turnover
Current ratio
Receivables turnover
Quick ratio
Profitability
Inventory turnover
Inventory turnover
Return on assets
Payout ratio
Solvency
Times interest earned
Debt to total assets
Times interest earned
Return on assets
Final Exam
FE- 5
____ 21. A companys planned activity level for next year is expected to be 100,000 machine
hours. At this level of activity, the company budgeted the following manufacturing
overhead costs:
Variable
Indirect materials
Indirect labor
Factory supplies
$60,000
80,000
10,000
Fixed
Depreciation
$25,000
Taxes
5,000
Supervision
20,000
A flexible budget prepared at the 90,000 machine hours level of activity would allow
total manufacturing overhead costs of
a. $135,000.
b. $180,000.
c. $185,000.
d. $150,000.
____ 22. A company developed the following per unit materials standards for its product: 3
gallons of direct materials at $5 per gallon. If 4,000 units of product were produced last
month and 12,500 gallons of direct materials were used, the direct materials quantity
variance was
a. $1,500 favorable.
b. $2,500 unfavorable.
c. $1,500 unfavorable.
d. $2,500 favorable.
____ 23. The standard direct labor cost for producing one unit of product is 5 direct labor hours
at a standard rate of pay of $8. Last month, 5,000 units were produced and 24,500
direct labor hours were actually worked at a total cost of $180,000. The direct labor
quantity variance was
a. $4,000 unfavorable.
b. $6,000 unfavorable.
c. $6,000 favorable.
d. $4,000 favorable.
____ *24. Smythe Company applies overhead to products based on direct labor hours.
Manufacturing overhead at the expected normal level of activity is $50,000 per month
plus $5 per direct labor hour. During June, actual manufacturing overhead costs
amounted to $85,000 when 6,100 actual direct labor hours were worked. The standard
number of direct labor hours that should have been worked for the output achieved
was 6,000 direct labor hours. The overhead controllable variance for June was
a. $4,500 unfavorable.
b. $3,400 favorable.
c. $5,000 unfavorable.
d. $5,000 favorable.
____ 25. Under the time-and-material-pricing approach, the charges for any particular job
include each of the following except the
a. labor charge.
b. charge for materials.
c. material loading charge.
d. overhead charge.
FE- 6
____ 26. The transfer pricing approach that does not reflect the selling divisions true profitability is the
a. cost-based approach.
b. market-based approach.
c. negotiated price approach.
d. time-and-material-pricing approach.
Use the following information for questions 27 and 28.
Robot Toy Company manufactures two products: X-O-Tron and Mechoman. Robots overhead
costs consist of setting up machines, $200,000; machining, $450,000; and inspecting, $150,000
Additional information on the two products is:
Direct labor hours
Machine setups
Machine hours
Inspections
X-O-Tron
15,000
600
24,000
800
Mechoman
25,000
400
26,000
700
Final Exam
FE- 7
Activity-based costing
Annual rate of return
Budgetary control
Contribution margin
Contribution margin ratio
Controllable costs
Absorption costing
Cost accounting
Cost centers
Cost of capital
Equivalent units of production
Fixed costs
Free cash flow
N.
O.
P.
Q.
*R.
*S.
T.
U.
V.
W.
X.
Y.
Z.
____
1. Costs that a manager has the authority to incur within a given period of time.
____
____
____
4. The difference between overhead budgeted for standard hours allowed and overhead
incurred.
____
____
6. Used to apply costs to similar products that are mass produced in a continuous
fashion.
____
7. Costs that vary in total directly and proportionately with changes in the activity level.
____
____
____ 10. The rate a company must pay to obtain funds from creditors and stockholders.
____ 11. Costs that are an integral part of producing the finished product.
____ 12. Allocates overhead to multiple cost pools and assigns the cost pools to products by
means of cost drivers.
____ 13. Involves the measuring, recording, and reporting of product costs.
____ 14. A measure of the work done during the period, expressed in fully completed units.
____ 15. A costing approach in which all manufacturing costs are charged to the product.
____ 16. Increase the worth of a product or service to customers.
____ 17. The amount of cash from operations after deducting capital expenditures and cash
dividends paid.
____ 18. Individual budgets that culminate in a budgeted income statement.
FE- 8
The company planned to work 100,000 direct labor hours and produce 25,000 units of product in
2008. Actual results for 2008 are as follows:
Instructions
Calculate the following variances showing all computations supporting your answers. Indicate if
the variances are favorable (F) or unfavorable (U).
(a) Direct materials price and direct materials quantity variances.
(b) Direct labor price and direct labor quantity variances.
*(c) Overhead controllable and overhead volume variances.
Final Exam
FE- 9
Jenner Corporation
Income Statement
For the Year Ended December 31, 2008
$ 30,000
70,000
140,000
240,000
760,000
$1,000,000
Revenues
Expenses
Cost of goods sold
Selling and administrative
expenses
Interest expense
Total expenses
Income before income taxes
Income tax expense
Net income
$2,000,000
960,000
740,000
50,000
1,750,000
250,000
100,000
$ 150,000
FE- 10
(b) Carson sells each unit for $500. Variable costs per unit equal $300. Total fixed costs equal
$800,000. Carson is currently selling 5,000 units per period and would like to earn net
income of $400,000. Compute: (1) break-even point in dollars; (2) sales units necessary to
attain desired income; and (3) margin of safety ratio for current operations.
(1) Break-even point = $________________________________________________.
(2) Desired sales = ___________________________________________ units.
(3) Margin of safety = _____________________________________________%.
Final Exam
FE- 11
c
d
b
c
a
d
7.
8.
9.
10.
11.
12.
d
c
d
b
c
d
13.
14.
15.
16.
17.
18.
a
c
a
c
c
b
19.
20.
21.
22.
23.
*24.
a
c
c
b
d
c
25.
26.
27.
28.
29.
30.
d
a
d
c
c
c
F
N
W
R
D
6.
7.
8.
9.
10.
U
Y
Z
B
J
11.
12.
13.
14.
15.
V
A
H
K
G
16. X
17. M
18. Q
$685,000
96,000
$4
$384,000
300,000
684,000
$ 1,500 U
$684,000
672,000
$ 12,000 U
FE- 12
$240,000
Current ratio = = 2.40:1.
$100,000
(b)
$450,000
Debt to total assets ratio = = 45%.
$1,000,000
(c)
$300,000
Times interest earned = = 6 times.
$50,000
(d)
$960,000
Inventory turnover = = 8 times.
$120,000
(e)
$150,000
Profit margin = = 7.5%.
$2,000,000
(f)
$150,000
Return on stockholders' equity = = 30%.
$500,000
(g)
$150,000
Return on assets = = 16.7%.
$900,000
$800,000
(1) Break-even point = = $2,000,000.
.4
$800,000 + $400,000
(2) Desired sales = = 6,000 units.
200
$500,000
(3) Margin of safety = = 20%.
$2,500,000
21,000
600
21,600