1. (TCO 1) Setting a sales goal of a 12% year-over-year increase in sales is an example of which management responsibility? (Points : 7)

Planning Directing Controlling Decision making

Question 2.2. (TCO 1) Which of the following statements regarding financial accounting and managerial accounting is correct? (Points : 7)

Financial accounting must follow GAAP, whereas managerial accounting does not need to follow GAAP. Financial accounting is concerned with the future, whereas managerial accounting is concerned with the past. Managerial accounting information must be audited, whereas financial accounting information must be relevant. Financial accounting is focused on decision making, whereas managerial accounting information is concerned with reporting historical transactions accurately.

Question 3.3. (TCO 1) Which of the following is an inventoriable product cost? (Points : 7)

Sales commissions paid on each unit sold Depreciation on factory equipment Marketing expenses Rent for the headquarters office building

Question 4.4. (TCO 1) Which of the following is a period cost? (Points : 7)

Raw materials cost Depreciation on factory equipment Insurance for the factory Rent for the headquarters office building

Question 5.5. (TCO 1) Which of the following is a variable cost? (Points : 7)

The salary of the plant manager Rent for the factory Total expense for shipping products to customers Insurance for the headquarters office building

Question 6.6. (TCO 1) Which of the following is a conversion cost? (Points : 7)

Interest paid on the headquarters office building Cost to rent the factory building Advertising costs Direct materials costs

Question 7.7. (TCO 1) On December 31, 2015, SLE Inc. has a balance in the Finished Goods Inventory account of $55,000. On January 1, 2015, the balance in the Finished Goods Inventory account was $33,000. On December 31, 2015, the balance in the Work-in-Process inventory account is $10,000. On January 1, 2015, the balance in the Work-in-Process inventory account is $16,000. Cost of Goods Manufactured for the year 2015 has already been calculated and is $210,000. For the year 2015, how much is Cost of Goods Sold? (Points : 7)

$188,000 $204,000 $216,000 $232,000

Question 8.8. (TCO 2) Which of the companies below would be most likely to apply job-order costing? (Points : 7)

A brick manufacturer A breakfast cereal manufacturer A frozen cranberry juice processor An automobile repair shop

Question 9.9. (TCO 2) ABC Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead cost and direct labor for August follows. Estimated Actual Overhead cost $270,000 $300,000 Direct labor hours 20,000 30,000 Direct labor cost $90,000 $60,000 How much is the predetermined manufacturing overhead rate? (Points : 7)

300% 500% $10.00 per direct labor hour $13.50 per direct labor hour

Question 10.10. (TCO 2) During 2015, Kim Company applied overhead using a job-order costing system at a predetermined overhead rate of $12 per direct labor hour. Estimated direct labor hours for the year were 125,000, and estimated overhead for the year was $1,500,000. Actual direct labor hours for 2015 were 130,000, and actual overhead was $1,650,000. What is the amount of under- or over-applied overhead for the year? (Points : 7)

$90,000 over-applied $90,000 under-applied $150,000 over-applied $150,000 under-applied