Professional Documents
Culture Documents
Name:______________________
Name:____________________________________
___________________
_____
GENERAL INSTRUCTIONS: You are given 3 hours to answer all the questions. Shade the box corresponding to the letter of
your choice in the answer sheet. A BSOLUTELY NO ERASURES in the answer sheet, any erasure will be marked as wrong.
1.) I - A standar
standardd cost card
card is prepared
prepared after
after manufa
manufactu
cturin
ringg standar
standards
ds have
have been devel
develope
opedd for direct
direct mater
material
ials,
s,
direct labor, and factory overhead
II - The total variance can provide useful information about the source of cost differences
a. I is true c. both are true
b. II is true d. both are false
2.)
2.) I - The
The form
formul
ulaa for
for pri
price
ce/r
/rat
atee var
varia
ianc
ncee is (AP
(AP - SP)
SP) x AQ
II - The formula for price/rate variance is (AP - SP) x SQ
a. I is true c. both are true
b. II is true d. both are false
3.) I - The price
price varianc
variancee reflect
reflectss the differ
differenc
encee between
between the
the price
price paid for
for inputs
inputs and
and the stand
standard
ard price
price for
for those
those
inputs
II - The usage variance reflects the difference between the price paid for inputs and the standard price for those
inputs
a. I is true c. both are true
b. II is true d. both are false
4.)
4.) I - The
The for
formu
mula
la for
for usa
usage
ge vari
varian
ance
ce is (AQ - SQ)
SQ) * SP
II - The formula for usage variance is (AQ - SQ) * AP
a. I is true c. both are true
b. II is true d. both are false
16.) I - Financial accounting is most concerned with meeting the needs of internal users.
II - Managerial accounting is most concerned with addressing the needs of the firm as a whole
a. I is true c. both are true
b. II is true d. both are false
17.) I - The relevant range is valid for all levels of activity
II - An indirect cost can be easily traced to a cost object
a. I is true c. both are true
b. II is true d. both are false
18.) The term "relevant range" as used in cost accounting means the range over which
a. costs may fluctuate.
b. cost relationships are valid.
c. production may vary.
d. relevant costs are incurred.
19.) Predetermined overhead rates are computed based on
estimated overhead costs estimated level of activity
a. yes yes
b. yes no
c. no yes
d. no no
20.) One reason annual overhead application rates are used is
a. because of seasonal variability of overhead costs.
b. To help budget overhead costs.
c. To minimize the overhead cost assigned to products.
d. To maximize the overhead cost assigned to products.
21.) Which of the following could not be used in job order cos ting?
a. Standards
b. An average cost per unit for all jobs
c. normal costing
d. overhead allocation based on the job's direct labor hours
22.) A job order costing system is likely to provide better
(1) inventory valuations for financial statements.
(2) control over inventory.
(3) information about ability to accept additional production work.
(1) (2) (3)
a. yes no no
b. No yes yes
c. No no no
d. yes yes yes
23.) I - The FIFO method combines beginning inventory and current production to compute cost per unit of production
II - The weighted average method separates beginning inventory and current production to compute cost per unit
of production
a. I is true c. both are true
b. II is true d. both are false
24.) In a FIFO process costing system, which of the following are assumed to be completed first in the current period?
a. units started this period
b. units started last period
c. units transferred out
d. units still in process
Turtle Company has a job order costing system and an overhead application rate of 120 percent of direct labor cost.
Job #63 is charged with direct material of P12,000 and overhead of P7,200. Job #64 has direct material of P2,000 and
direct labor of P9,000.
41.) Refer to Turtle Co. What amount of direct labor cost has been charged to Job #63?
a. P 6,000
b. P 7,200
c. P 8,640
d. P14,400
42.) Refer to Turtle Company. What is the total cost of Job #64?
a. P10,800
b. P11,000
c. P21,800
d. P30,200
43.) Green Company started 9,000 units in February. The company transferred out 7,000 finished units and ended
the period with 3,500 units that were 40 percent complete as to both material and conversion c osts. Beginning
Work in Process Inventory units were
a. 500.
b. 600.
c. 1,500.
d. 2,000.
The Houston Company makes wreaths in two departments: Forming and Decorating. Forming began the month with
500 wreaths in process that were 100 percent complete as to material and 40 percent complete as to conversion.
During the month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were still in process that
were 100 percent complete as to material and 50 percent complete as to conversion. Assume Forming uses the
weighted average method of process costing. Costs in the Forming Department are as follows:
The Decorating Department had 600 wreaths in process at the beginning of the month that were 80 percent complete
as to material and 90 percent complete as to conversion. The department had 300 units in ending Work in Process that
were 50 percent complete as to material and 75 percent complete as to conversion. Decorating uses the FIFO method
of process costing, and costs associated with Decorating are:
44.) Refer to Houston Company. How many units were transferred to Decorating during the month?
a. 600
b. 4,900
c. 5,950
d. 7,000
45.) Refer to Houston Company. What was the cost transferred out of Forming during the month?
a. P5,341
b. P6,419
c. P8,245
d. P8,330
Zebra Corporation
Zebra Corporation's EOQ for Material A is 500 units. This EOQ is based on:
Annual demand 5,000 units
Ordering costs P12.50
46.) Refer to Zebra Corporation. What is the annual carrying cost per unit for Material A?
a. P0.50
b. P2.00
c. P2.50
d. P5.00
47.) Refer to Zebra Corporation. What are Zebra’s Corp.'s total annual ordering costs for Material A?
a. P6,000
b. P600
c. P125
d. P1,000
Snacks Company
Snacks Company produces two products (A and B). Direct material and labor costs for Product A total P35 (which reflects 4
direct labor hours); direct material and labor costs for Product B total P22 (which reflects 1.5 direct labor hours). Three
overhead functions are needed for each product. Product A uses 2 hours of Function 1 at P10 per hour, 1 hour of Function 2
at P7 per hour, and 6 hours of Function 3 at P18 per hour. Product B uses 1, 8, and 1 hours of Functions 1, 2, and 3,
respectively. Snacks produces 800 units of A and 8,000 units of B each period.
48.) Refer to Snacks Company If total overhead is assigned to A and B on the basis of units produced, Product A will
have an overhead cost per unit of
a. P 88.64.
b. P123.64.
c. P135.00.
d. None of the responses are correct.
49.) Refer to Snacks Company If total overhead is assigned to A and B on the basis of units produced, Product B will
have an overhead cost per unit of
a. P84.00.
b. P88.64.
c. P110.64.
d. None of the responses are correct.
50.) Refer to Snacks Company If total overhead is assigned to A and B on the basis of direct labor hours, Product A
will have an overhead cost per unit of
a. P51.32.
b. P205.28.
c. P461.88.
d. None of the responses are correct.
51.) Refer to Snacks Company If total overhead is assigned to A and B on the basis of direct labor hours, Product B
will have an overhead cost per unit of
a. P51.32.
b. P76.98.
c. P510.32.
d. None of the responses are correct.
52.) Refer to Snacks Company If total overhead is assigned to A and B on the basis of overhead activity hours used,
the total product cost per unit assigned to Product A will be
a. P86.32.
b. P95.00.
c. P115.50.
d. None of the responses are correct.
53.) Refer to Snacks Company If total overhead is assigned to A and B on the basis of overhead activity hours used,
the total product cost per unit assigned to Product B will be
a. P115.50.
b. P73.32.
c. P34.60.
d. None of the responses are correct.
Hazel Company
Hazel Company uses activity-based costing. The company produces two products: coats and hats. The annual production
and sales volume of coats is 8,000 units and of hats is 6,000 units. There are three activity cost pools with the following
expected activities and estimated total costs:
54.) Refer to Hazel Company. Using ABC, the cost per unit of coats is approximately:
a. P2.40 c. P 6.60
b. P3.90 d. P10.59
55.) Refer to Hazel Company. Using ABC, the cost per unit of hats is approximately:
a. P2.40 c. P12.00
b. P3.90 d. P15.90
Loft Savings and Loan had the following activities, traceable costs, and physical flow of driver units:
The above activities are used by the Jennings branch and the Crowley branch:
Jennings Crowley
New accounts 200 400
Deposits 40,000 20,000
Withdrawals 15,000 18,000
Loan applications 100 160
56.) Refer to Loft Savings and Loan. What is the cost per driver unit for new account activity?
a. P0.09 c. P30.00
b. P0.075 d. P50.00
57.) Refer to Loft Savings and Loan. What is the cost per driver unit for the deposit activity?
a. P0.09 c. P30.00
b. P0.075 d. P50.00
58.) Refer to Loft Savings and Loan. What is the cost per driver unit for the withdrawal activity?
a. P0.09 c. P30.00
b. P0.075 d. P50.00
59.) Refer to Loft Savings and Loan. What is the cost per driver unit for the loan application activity?
a. P0.09 c. P30.00
b. P0.075 d. P50.00
60.) Refer to Loft Savings and Loan. How much of the loan application cost will be assigned to the Jennings branch?
a. P3,000 c. P 7,800
b. P4,800 d. P27,000
61.) Refer to Loft Savings and Loan. How much of the deposit cost will be assigned to the Crowley branch?
a. P1,800 c. P 5,400
b. P3,600 d. P36,000
62.) Refer to Loft Savings and Loan. How much of the new account cost will be assigned to the Crowley branch?
a. P10,000 c. P30,000
b. P20,000 d. P50,000
Barley Company
Standards:
Material 3.0 feet per unit @ P4.20 per foot
Labor 2.5 hours per unit @ P7.50 per hour
Actual:
Production 2,750 units produced during the month
Material 8,700 feet used; 9,000 feet purchased @ P4.50 per foot
Labor 7,000 direct labor hours @ P7.90 per hour
(Round all answers to the nearest peso.)
63.) Refer to Barley Company. What is the material price variance (calculated at point of purchase)?
a. P2,700 U
b. P2,700 F
c. P2,610 F
d. P2,610 U
64.) Refer to Barley Company. What is the material quantity variance?
a. P3,105 F
b. P1,050 F
c. P3,105 U
d. P1,890 U
65.) Refer to Barley Company. What is the labor rate variance?
a. P3,480 U
b. P3,480 F
c. P2,800 U
d. P2,800 F
66.) Refer to Barley Company. What is the labor efficiency variance?
a. P1,875 U
b. P938 U
c. P1,875 U
d. P1,125 U
Fischer Company
Fischer Company uses a standard cost s ystem for its production process and applies overhead based on direct labor hours.
The following information is available for August when Fischer made 4,500 units:
Standard:
DLH per unit 2.50
Variable overhead per DLH P1.75
Fixed overhead per DLH P3.10
Budgeted variable overhead P21,875
Budgeted fixed overhead P38,750
Actual:
Direct labor hours 10,000
Variable overhead P26,250
Fixed overhead P38,000
67.) Refer to Fischer Company. Using the one-variance approach, what is the total overhead variance?
a. P6,062.50 U
b. P3,625.00 U
c. P9,687.50 U
d. P6,562.50 U
68.) Refer to Fischer Company. Using the two-variance approach, what is the controllable variance?
a. P5,812.50 U
b. P5,812.50 F
c. P4,375.00 U
d. P4,375.00 F
69.) Refer to Fischer Company. Using the two-variance approach, what is the noncontrollable variance?
a. P3,125.00 F
b. P3,875.00 U
c. P3,875.00 F
d. P6,062.50 U
70.) Refer to Fischer Company. Using the three-variance approach, what is the spending variance?
a. P4,375 U
b. P3,625 F
c. P8,000 U
d. P15,750 U
71.) Refer to Fischer Company. Using the three-variance approach, what is the efficiency variance?
a. P9,937.50 F
b. P2,187.50 F
c. P2,187.50 U
d. P2,937.50 F
Rodent Company
Rodent Company produces four solvents from the same process: C, D, E, and G. Joint product costs are $9,000. (Round all
answers to the nearest dollar.)
Disposal Final
Sales price cost Further sales
per barrel per barrel processing price
Barrels at split-off at split-off costs per barrel
C 750 $10.00 $6.50 $2.00 $13.50
D 1,000 8.00 4.00 2.50 10.00
E 1,400 11.00 7.00 4.00 15.50
G 2,000 15.00 9.50 4.50 19.50
If Rodent sells the products after further processing, the following disposal costs will be incurred: C, $2.50; D, $1.00; E,
$3.50; G, $6.00.
72. Refer to Rodent Company. Using a physical measurement method, what amount of joint processing cost is
allocated to Product D?
a. $1,748
b. $2,447
c. $1,311
d. $3,495
73.Refer to Rodent Company. Using a physical measurement method, what amount of j oint processing cost is
allocated to Product E?
a. $3,495
b. $2,447
c. $1,748
d. $1,311
74.Refer to Rodent Company. Using a physical measurement method, what amount of j oint processing cost is
allocated to Product C?
a. $3,495
b. $2,447
c. $1,748
d. $1,311
75.Refer to Rodent Company. Using a physical measurement method, what amount of j oint processing cost is
allocated to Product G?
a. $3,495
b. $2,447
c. $1,748
d. $1,311
76. Refer to Rodent Company. Using sales value at split-off, what amount of joint processing cost is allocated to
Product D?
a. $4,433
b. $2,276
c. $1,108
d. $1,182
77. Refer to Rodent Company. Using sales value at split-off, what amount of joint processing cost is allocated to
Product C?
a. $4,433
b. $2,276
c. $1,108
d. $1,182
78. Refer to Rodent Company. Using sales value at split-off, what amount of joint processing cost is allocated to
Product G?
a. $4,433
b. $1,182
c. $1,108
d. $2,276
79.Refer to Rodent Company. Using sales value at split-off, what amount of joint processing cost is allocated to
Product E?
a. $4,433
b. $1,182
c. $1,108
d. $2,276
80.Refer to Rodent Company. Using net realizable value at split-off, what amount of joint processing cost is allocated
to Product C?
a. $1,550
b. $1,017
c. $4,263
d. $2,170