Acc202 final exam

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AC202

Final Exam (total 200 points)

Multiple choice (each question is worth 3 points,
total possible is 60 points)

1. Which of the following is not an internal user?

a. Creditor

b. Department manager

c. Controller

d. Treasurer

2. Internal reports are generally

a. aggregated.

b. detailed.

c. regulated.

d. unreliable.

3. The reporting standard for external financial
reports is

a. industry-specific.

b. company-specific.

c. generally accepted accounting principles.

d. department-specific.

4. A distinguishing feature of managerial accounting
is

a. external users.

b. general-purpose reports.

c. very detailed reports.

d. quarterly and annual reports.

5. The job cost sheet does not show

a. costs chargeable to a specific job.

b. the total costs of a completed job.

c. the unit cost of a completed job.

d. the cost of goods sold.

6. Which one of the following best describes a job
cost sheet?

a. It is a form used to record the costs chargeable
to a specific job and to determine the total and unit costs of the completed
job.

b. It is used to track manufacturing overhead costs
to specific jobs.

c. It is used by management to understand how direct
costs affect profitability.

d. It is a daily form that management uses for
tracking worker productivity on which employee raises are based.

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7. Manufacturing overhead applied is added to direct
labor incurred and to what other item to equal total manufacturing costs for
the period?

a. Goods available for sale.

b. Raw materials purchased.

c. Work in process.

d. Direct materials used.

8. At the beginning of the year, Monroe Company
estimates annual overhead costs to be $1,600,000 and that 300,000 machine hours
will be operated. Using machine hours as a base, the amount of overhead applied
during the year if actual machine hours for the year was 315,000 hours is

a. $1,600,000.

b. $1,523,809.

c. $1,120,000.

d. $1,680,000.

9. Which of the following is not used in
assigning manufacturing costs to work in process inventory?

a. Actual manufacturing overhead

b. Time tickets

c. Materials requisitions

d. Predetermined overhead rate

10. At the end of the year, any balance in the
Manufacturing Overhead account is generally eliminated by adjusting

a. Work In Process Inventory.

b. Finished Goods Inventory.

c. Cost of Goods Sold.

d. Raw Materials Inventory.

11. Which of the following is not a fixed
cost?

a. Direct materials

b. Depreciation

c. Lease charge

d. Property taxes

12. A mixed cost contains

a. a variable element and a fixed element.

b. both selling and administrative costs.

c. both retailing and manufacturing costs.

d. both operating and nonoperating costs.

13. A variable cost is a cost that

a. varies per unit at every level of activity.

b. occurs at various times during the year.

c. varies in total in proportion to changes in the
level of activity.

d. may or may not be incurred, depending on
management’s discretion.

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When
budgeted and actual results are not the same amount, there is a budget

a. error.

b. difference.

c. anomaly.

d. by-product.

15. If costs are not responsive to changes in
activity level, then these costs can be best described as

a. mixed.

b. flexible.

c. variable.

d. fixed.

16. A static budget is appropriate for

a. variable overhead costs.

b. direct materials costs.

c. fixed overhead costs.

d. None of these.

17. What is the primary difference between a static
budget and a flexible budget?

a. The static budget contains only fixed costs,
while the flexible budget contains only variable costs.

b. The static budget is prepared for a single level
of activity, while a flexible budget is adjusted for different activity levels.

c. The static budget is constructed using input from
only upper level management, while a flexible budget obtains input from all
levels of management.

d. The static budget is prepared only for units
produced, while a flexible budget reflects the number of units sold.

18. A standard which represents an efficient level of
performance that is attainable under expected operating conditions is called
a(n)

a. ideal standard.

b. loose standard.

c. tight standard.

d. normal standard.

19.
The
perspectives included in the balanced scorecard approach include all of the
following except the

a. internal process perspective.

b. capacity utilization perspective.

c. learning and growth perspective.

d. customer perspective.

20. The customer perspective of the balanced
scorecard approach

a. is the most traditional view of the company.

b. evaluates the internal operating processes
critical to the success of the organization.

c. evaluates how well the company develops and
retains its employees.

d. evaluates the company from the viewpoint of those
people who buy its products or services.

Quantitative problems (each problem is worth 20
points, total possible is 140)

21. Dirt Cleaners, Inc. has the following
production data for January:

Transferred out

50,000 units

Ending work in
process

6,000 units

The units in ending work in process are 100%
complete for materials and 60% complete for conversion costs. There is no
beginning work in process. Materials cost is $6 per unit and conversion costs
are $11 per unit.

Instructions

Determine the costs to be assigned to the units
transferred out and the units in ending work in process.

22. Rhode Company provides architectural services
for mall development companies. The following data are available for 2013

Expected Use of

Activity Cost Pool

Estimated Overhead

Cost Driver per Activity

Secretarial
support

$ 220,000

27,500 professional hours

Direct labor
fringe benefits

200,000

$500,000 direct labor cost

Printing and
copying

30,000

20,000 pages

Computer support

250,000

62,500 minutes

Liability
insurance

140,000

$2,800,000 billed revenue

Instructions

Compute the activity-based overhead rates.

23. Telemark Production’s manufacturing costs for
July when production was 2,000 units appears below:

Direct materials

$10 per unit

Factory
depreciation

$16,000

Variable overhead

10,000

Direct labor

4,000

Factory
supervisory salaries

11,600

Other fixed
factory costs

3,000

Instructions

How much is the flexible budget manufacturing
cost amount for a month when 2,200 units are produced?

24. Qwik Service has over 200 auto-maintenance
service outlets nationwide. It provides primarily two lines of service: oil
changes and brake repair. Oil change-related services represent 75% of its
sales and provide a contribution margin ratio of 20%. Brake repair represents
25% of its sales and provides a 60% contribution margin ratio. The company’s
fixed costs are $12,000,000 (that is, $60,000 per service outlet).

Instructions

(a) Calculate the dollar amount of each type of
service that the company must provide in order to break even.

(b) The company has a desired net income of $45,000
per service outlet. What is the dollar amount of each type of service that must
be provided by each service outlet to meet its target net income per outlet?

24. Jent Company reported the following information
for 2013:

October

November

December

Budgeted sales

$320,000

$340,000

$360,000

Budgeted
purchases

$120,000

$128,000

$144,000

·
All sales
are on credit.

·
Customer
amounts on account are collected 40% in the month of sale and 60% in the
following month.

Instructions

Compute the amount of cash Jent will receive
during November.

25. Seacoast Company provided the following
information about its standard costing system for 2013:

Standard Data

Actual Data

Materials

10 lbs. @ $4 per lbs.

Produced

4,000 units

Labor

3 hrs. @ $21 per hr.

Materials purchased

50,000 lbs. for $215,000

Budgeted production

3,500 units

Materials used

41,000 lbs.

Labor worked

11,000 hrs. costing

$220,000

Instructions

Calculate the labor price variance and the labor
quantity variance.

26. Selected data from the Florida Fruit Company
are presented below:

Total assets

$1,500,000

Average total
assets

1,850,000

Net income

175,000

Net sales

1,300,000

Average common
stockholders’ equity

1,000,000

Net cash provided
by operating activities

275,000

Instructions

Assuming that no
dividends were declared or paid during the period, calculate the following
profitability ratios from the above information:

1. Profit margin

2. Asset turnover

3. Return on assets

4. Return on common stockholders’ equity

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