1. (TCO 1) Managerial accounting stresses accounting concepts and procedures that are relevant to preparing reports for (Points: 4) 1-taxing authorities. 2-internal users of accounting information. 3-external users of accounting information. 4-the Securities and Exchange Commission (SEC). 2. (TCO 1) Which of the following costs does not change when the level of business activity changes? (Points: 4) 1-total fixed costs 2-total variable costs 3-total direct materials costs 4-fixed costs per unit 3. (TCO 1) You own a car and are trying to decide whether or not to trade it in and buy a new car. Which of the following costs is an opportunity cost in this situation? (Points: 4) 1-the trip to Cancun that you will not be able to take if you buy the car 2-the cost of the car you are trading in 3-the cost of your books for this term 4-the cost of your car insurance last year 4. (TCO 1) Shulas 347 Grill has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,700; depreciation, $800; and other fixed costs, $600. Each steak dinner sells for $14.00 each. What is the budgeted total variable cost? (Points: 4) 1-$5,200 2-$9,280 3-$10,080 4-$2,300 5. (TCO 1) Which of the following costs is part of manufacturing overhead? (Points: 4) 1-indirect labor 2-direct labor 3-salaries for the accounting personnel 4-wages for the janitorial staff for the sales offices 6. (TCO 1) Which of the following is not a period cost? (Points: 4) 1-advertising costs 2-accounting staff salaries 3-direct materials 4-depreciation of accounting office equipment 7. (TCO 1) If the balance in the Finished Goods Inventory account increased by $30,000 during the period and the cost of goods manufactured was $220,000, how much is cost of goods sold? (Points: 4) 1-$110,000 2-$190,000 3-$220,000 4-$250,000 8. (TCO 2) BCS Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for August follows: Estimated Actual Overhead cost $174,000 $171,000 Direct labor hours 5,800 5,900 Direct labor cost $87,000 $89,975 How much overhead should be applied in total during August? (Points: 4) 1-$177,000 2-$179,950 3-$171,100 4-$168,200 9. (TCO 2) During 2011, Magus Company applied overhead using a job-order costing system at a rate of $12 per direct labor hours. Estimated direct labor hours for the year were 150,000, and estimated overhead for the year was $1,800,000. Actual direct labor hours for 2011 were 140,000 and actual overhead was $1,700,000. What is the amount of under or over applied overhead for the year? (Points: 4) 1-$100,000 underapplied 2-$20,000 underapplied 3-$100,00 overapplied 4-$120,000 underapplied 10. (TCO 3) Which of the following companies is most likely to use a process costing system? (Points: 4) 1-a law office 2-a custom home builder 3-a car repair business 4-a food manufacturer 11. (TCO 3) The Blending Department began the period with 45,000 units. During the period the department received another 30,000 units from the prior department and completed 60,000 units during the period. The remaining units were 75% complete. How much are equivalent units in The Blending Departments work in process inventory at the end of the period? (Points: 4) 1-30,000 2-22,500 3-15,000 4-11,250 12. (TCO 3) Ranger Glass Company manufactures glass for French doors. At the start of May, 2,000 units were in-process. During May, 11,000 units were completed and 3,000 units were in process at the end of May. These in-process units were 90% complete with respect to material and 50% complete with respect to conversion costs. Other information is as follows: Work in process, May 1: Direct material $36,000 Conversion costs $45,000 Costs incurred during May: Direct material $186,000 Conversion costs $255,000 How much is the cost per equivalent unit for direct materials? (Points: 4) 1-$24.00 2-$16.20 3-$15.86 4-$13.58 13. (TCO 4) Duradyne, Inc. has total costs of $18,000 when 2,000 units are produced and $26,000 when 5,200 units are produced. During March, 4,000 units were produced and sold for $8 each. What is the variable cost per unit? (Points: 4) 1-$2.50 2-$0.40 3-$2.00 4-$4.00