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ACCT 344 Week 8 Final Exam

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Question 1.1 (TCO 2) Which cost is NOT a period
cost? (Points : 5)
Question 2.2. (TCO 2) Which product would use

job-order costing? (Points : 5)
Question 3.3. (TCO 3) As production occurs,
materials, direct labor, and applied manufacturing
overhead are recorded in (Points : 5)
Question 4.4. (TCO 8) A company keeps 60 days
of materials inventory on hand to avoid shutdowns
due to materials shortages. Carrying costs
average $5,000 per day. A competitor keeps 30
days of inventory on hand, and the competitor's
carrying costs average $2,000 per day. The valueadded costs are (Points : 5)
Question 5.5. (TCO 8) Which is a value-added
activity? (Points : 5)
Question 6.6. (TCO 1) The break-even point is
(Points : 5)
Question 7.7. (TCO 1) The Kringel Company
provides the following information. Sales (200,000
units) $500,000 Manufacturing costs Variable

$170,000 Fixed $30,000 Selling and
administrative costs Variable $80,000 Fixed
$20,000 Which is the break-even point in units for
Kringel? (Points : 5)
Question 8.8. (TCO 7) Which would be the most
appropriate base for allocating the costs of the
maintenance department? (Points : 5)
Question 9.9. (TCO 7) Yo Department Store
incurred $8,000 of indirect advertising costs for its
operations. The following data have been
collected for 2013 for its three
departments……….How much of the indirect
advertising costs will be allocated to the
Cosmetics Department if newspaper ad space is
the activity driver?(Points : 5)
Question 10.10. (TCO 5) Which best describes
zero-base budgeting? (Points : 5)
Question 11.11. (TCO 5) Bug Company

manufactures buggies. Manufacturing a buggy
takes 20 units of wood and 1 unit of steel.
Scheduled production of buggies for the next 2
months is 500 and 600 units, respectively.
Beginning inventory is 4,000 units of wood and 30
units of steel. The ending inventory of wood is
planned to decrease 500 units in each of the next
2 months, and the steel inventory is expected to
increase 5 units in each of the next 2 months.
How many units of wood are expected to be used
in production during the second month? (Points :
5)
Question 12.12. (TCO 4) Which statement is
true? (Points : 5)
Question 13.13. (TCO 6) Using more highly
skilled direct laborers might affect which variance?
(Points : 5)
Question 14.14. (TCO 6) Which equation

measures the total budget variance? (Points : 5)
…………(TCO 1) George Corporation has an
estimated monthly sales of 12,000 units for $80
per unit. Variable costs include manufacturing
costs of $50 and distribution costs of $20. Fixed
costs are $60,000 per month. Required:
Determine each of the following values. a. Unit
contribution margin b. Monthly break-even unit
sales volume Create a contribution margin-based
income statement. (Points : 30)
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Question 1.1. (TCO 1) George Corporation has
an estimated monthly sales of 12,000 units for
$80 per unit. Variable costs include manufacturing
costs of $50 and distribution costs of $20. Fixed
costs are $60,000 per month……Required:
Determine each of the following values. a. Unit

contribution margin b. Monthly break-even unit
sales volume Create a contribution margin-based
income statement. (Points : 30)
Question 2.2. (TCO 7) Darling Manufacturing Inc.
manufactures two products, A and B, from a joint
process. A single production costs $5,000 and
results in 200 units of A and 800 units of B. To be
ready for sale, both products must be processed
further, incurring seperable costs of $3 per unit for
A and $4 per unit for B. The market price for
Product A is $15 and for Product B is
$10…..Required: Allocate joint production costs to
each product using the net realizable value
method. (Points : 30)
Question 3.3. (TCO 6) Santa Inc. manufactures
toys based on the following
information……....Required: Compute the
following variances (show calculations). a.

Materials usage variance b. Labor rate variance
-c. Fixed overhead budget variance (Points : 30)
Question 4.4. (TCO 4) Toshi Company incurred
the following costs in manufacturing desk……
During the period, the company produced and
sold 1,000 units. a. What is the inventory cost per
unit using absorption costing? b. What is the
inventory cost per unit using variable costing?
(Points : 30)
Question 5.5. (TCO 8) Musical Instruments
Company manufactures two products (trumpets
and trombones). Overhead costs ($175,000) have
been divided into three cost pools that use the
following activity drivers..........Required (show all
calculations) a. What is the allocation rate for
trumpets per setup using activity-based costing?
b. What is the allocation rate for trumpets per
machine hours using activity-based costing? c.

What is the allocation rate for trumpets per
packing order using activity-based costing?
(Points : 30)
Question 6.6. (TCO 5) The Baxter Corporation
has the following budgeted and actual results……
Required: Prepare a performance report for all
costs, showing flexible budget variances (indicate
F or U).