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Stat Cost MGT Midterms
Stat Cost MGT Midterms
1. Hoyden Co. developed the following equation to predict certain components of its budget for the coming period:
2. When cost relationships are linear, total variable manufacturing costs will vary in proportion to changes in:
A. machine hours
B. direct labor hours
C. total material cost
D. total overhead cost
E. volume of production
3. The term "relevant range" as used in cost accounting means the range over which:
A. relevant costs are incurred
B. cost relationships are valid
C. costs may fluctuate
D. sales volume fluctuates
E. production may vary
5. The following relationships pertain to a year's budgeted activity for Buckeye Company:
High Low
Direct labor hours ............................................................................. 400,000 300,000
Total costs ......................................................................................... $154,000 $129,000
High Low
Cost per month .......................................................................... $39,200 $32,000
Machine hours ...............................................................................24,000 15,000
Using the high-low method of analysis, the estimated variable cost per machine hour is:
A. $12.50
B. $0.80
C. $0.08
D. $1.25
E. none of the above
SUPPORTING CALCULATION:
7. A company allocates its variable factory overhead based on direct labor hours. During the past three months,
the actual direct labor hours and the total factory overhead allocated were as follows:
Based upon this information, the estimated variable cost per direct labor hour was:
A. ₱.125
B. ₱12.50
C. ₱.08
D. ₱8
E. none of the above
High and Low Points Method. A controller is interested in analyzing the fixed and variable costs of indirect
labor as related to direct labor hours. The following data have been accumulated:
Required: Determine the amount of the fixed portion of indirect labor expense and the variable rate for
indirect labor expense, using the high and low points method. (Round the variable rate to three decimal places and the fixed cost
to the nearest whole dollar.)
FINAL ANSWER: SOLUTION:
8. Variable Rate : ______________
9. Total Fixed Cost : ___________
10. Under job order cost accumulation, the factory overhead control account controls:
A. factory overhead analysis sheets
B. all general ledger subsidiary accounts
C. job order cost sheets
D. cost reports by processes
E. materials inventories
11. Supplies needed for use in the factory are issued on the basis of:
A. job cost sheets
B. materials requisitions
C. time tickets
D. factory overhead analysis sheets
E. clock cards
13. In job order costing, when materials are returned to the storekeeper that were previously issued to the factory for
cleaning supplies, the journal entry should be made to:
A. Materials
Factory Overhead
B. Materials
Work in Process
C. Purchases Returns
Work in Process
D. Work in Process
Materials
E. Factory Overhead
Work in Process
14. Howell Corporation has a job order cost system. The following debits (credits) appeared in Work in Process for the
month of July:
Howell applies overhead to production at a predetermined rate of 90% based on the direct labor
cost. Job 1040, the only job still in process at the end of July, has been charged with factory
overhead of ₱2,250. What was the amount of direct materials charged to Job 1040?
A. ₱6,750
B. ₱2,250
C. ₱2,500
D. ₱4,250
E. ₱9,000
SUPPORTING CALCULATION:
15.Valentino Corporation makes aluminum fasteners. Among Valentino's 19-- manufacturing costs were:
17. Selected cost data (in thousands) concerning the past fiscal year's operations of the Moscow Manufacturing
Company are presented below.
Inventories
Beginning Ending
Materials ...................................................................................................................... ₱75 ₱ 85
Work in process ........................................................................................................... 80 30
Finished goods ............................................................................................................. 90 110
31. Refer to Smithson 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. ₱51.32.
b. ₱205.28.
c. ₱461.88.
d. None of the responses are correct.
Helps Company
Helps Company produces 50,000 units of Product Q and 6,000 units of Product Z during a period. In that period,
four set-ups were required for color changes. All units of Product Q are black, which is the color in the process at
the beginning of the period. A set-up was made for 1,000 blue units of Product Z; a set-up was made for 4,500
red units of Product Z; a set-up was made for 500 green units of Product Z. A set-up was then made to return the
process to its standard black coloration and the units of Product Q were run. Each set-up costs ₱500.
32. Refer to Phelps Company. If set-up cost is assigned on a volume basis for the department, what is the approximate
per-unit set-up cost for Product Z?
a. ₱.010.
b. ₱.036.
c. ₱.040.
d. None of the responses are correct.
33. Refer to Phelps Company. If set-up cost is assigned on a volume basis for the department, what is the approximate
per-unit set-up cost for the red units of Product Z?
a. ₱.036.
b. ₱.111.
c. ₱.250.
d. None of the responses are correct.
34. Refer to Phelps Company. Assume that Phelps Company has decided to allocate overhead costs using levels of
cost drivers. What would be the approximate per-unit set-up cost for the blue units of Product Z?
a. ₱.04.
b. ₱.25.
c. ₱.50.
d. None of the responses are correct.