Fall MULTIPLE CHOICE Select the one best answer Show Computations Use the following information for # 1, 2 s pt each (Rxcept: 1 pt *4 pt NO POINTS lean putations shown Co produced 1unit ot rter during the month. Coats incurred during the month follows direct materials used direct labor fixed factory overhead variable seliing & administrative expense fixed selling & administrative expense . 1. What was Item Y per unit product cost under direct (variable) costing a. 12 b. 21 c. 25 d. 29 2. What was Item Y per unit product cost under absorption coating a. 12 b. 21 c. 25 d. 29 3. Direct (variable costing method includes in inventory a. direct materials, direct labor, but no factory overhead b. direct materials, direct labor, and variable factory overhead c. prime cost but not conversion cost d. prime cost and all conversion cost 4. Standard costing system is used ** Cost of goods sold at standard 2 Variances net to a total of 1 unfavorable Company closes variances to cost of goods sold Cost of goods sold adjusted for variances a. 1 b. 2 p, 3 5.I. Direct materials: Standard cost per unit 2 60 Actual purchases: 10 units at a total cost of The materials price variance is [AP -SP) x AQ purchased a. 10 b. 30 c. 40 d. 58 II. The variance in part I is a. favorable b. unfavorable 6.I.HCo manufactures desks One of the direct materials uaed is plastie Standard cost is 2 kilograna at 3 per ki1ogram Production for the month: 10 desks Plastic used: 15 kilograma at 4 per kilogranm The materiale quantity variance waa -tng used SQ allowedSP a. 15 b. 20 c 39 d. 78 II. The variance in part I is a. favorable b. unfavorable sQ allowed Std per unit actual units Use the following information for # 7, 8 MACHINE HOURS FACTORY OVERHEAD standard allowed 16 actual budgeted fixed actual s 50 180 17 lactivity base is machine hours 7.I. If the two variance method for analyais of factory overhead is used, the budget (controllable) variance is activityVa units "Act [(Std x VariableBudget FOH - a. 30 b. 40 c. 120 d. 320 rate II. The variance in part I is a. favorable b. unfavorable 8.I. If the three variance method is used, the price (spending) variance is - Act OH[(Act x VariableBudget FOH] activity units a 30 rate c. 120 d. 320 II. The variance in part I is a. favorable b. unfavorable 9.I. Costs are applied to production on the basis of standard costs. Factory overhead rates are based on direct labor hours. Overhead rates per unit: variable4 fixed Information for the month follows: ACTUAL OVERHEAD DIRECT LABOR HOURS variable 60 fixed actual standard allowed normal capacity 12 10 90 Por the month, the overhead volume variance was .cn (Denominatorderd xPixed oH rate activity units activity units a, 6 b. 8 c. 12 d. 16 *II. The variance in part I is a. favorable b. unfavorable 10. H Co began operations on January 1. produces a single an actua coat syatem. There vas no work-in-process inventory at year end Information for the year follows produet, and uses Sales price per unit 30 Sales COST DATA: direct materiale Variable cost goods sold Begin inventory FIXEDVARIABLE Cost goods manufacture s 1 per unit produced direct 1labor factory overhead sell& admin 3 per unit produced 2 per unit produced 4 per unit sold End inventory 70 60 Variable sel1 & adnin Contribution margin Manufacturing Sell & admin UNITS: Inventory: begin end sold8 10 What would be net operating income Pixed cost under direct (variable) costing a. 30 b. 46 d. 76 Net operating income before tax 11.1. H Co uses the direct (variable) method to cost its inventory Manufacturing costs per unit: variable 4 UNITS: manufactured during the year 30 fixed beginning inventory ending inventory The difference between direct costing and absorption costing income would be b. 60 C. 80 d. 120 II. Net income using absorption coating as compared to direct costing would be a. lower b, higher 12. If the actual number of grams of materials used exceeds standard grams allowed **and actual cost is greater than standard coat, the variances are QUANTITY favorable unfavorable favorable unfavorable PRICE a. favorable b. favorable c. unfavorable d. unfavorable 13. H Co manufactures Products and Y from a joint process. Market value method is used to allocate joint costs. PRODUCT MARKET VALUB PER UNIT UNITS PRODUCED 10 Total joint cost is 8 What was the joint cost allocated to product a. 2 (Sales value known at split offl joint costs total market value Ube the following information for # 14, etandard cost ayatem io used. The standards for one MATERIAL TYPE LITERS STADARD PRICE PER LITER 15 STANDARD COST The standard 0 liter mix cost per 1iter is theretore 4.50 (36/ s litera) The standard mix should produce 4 units of tinished product Actuala for the period: TYPR: A 18 liters$5 90 18 C 22 4 6 196 The average actual cost per liter is therefore $ 4.26 ( 196 46 litero). Output of finished product was 25 units. 14.I. Individual mix variance for noninterchangeable inputs for material C wae TYPE ACT STD TOTAL ACT VAR STD a. 4.00 b. 4.50 c. 17.04 d. 18.00 QUAN HIX ACT STD PRICE VARIANCE QUAN *II. The variance in part is a. favorable b. unfavorable input Total inputs STANDARD MIX 15.I. Overal1 yield variance tor direct materiale va YIELD Inpute Outputs a. 4.00 b. 4.50 C. 17.04 d. 18.00 so allowed Yield x Actual output II. The variance in part I is VARIANCE YTELDtaQ used sQ allowed] x Std Avg Price a. favorable b. unfavorable 16. What does a credit balance in a direct labor efficiency variance account *indicate a. actual total direct labor costs incurred vere less than standard direct b. average wage rate paid to direct labor employees was less than the c. number of units produced was less than the number of units budgeted for d. atandard hours allowed for the units produced vere greater than actual labor costs alloved for the units produced standard rate the period hours used ose the following information for # 17, 18 H CO for the next year: QUARTES SALES n UNITS INVENTORIRS 20 16 Quarter 2 BRGINEND 34 Finiahed goods Direct materiala 2 28 26 17. Budgeted production for the second quarter of the next year would be a. 23 b. 16 c. 19 d. 21 UNITS OF SALES END INVENTORY BE N INVENTORY UNITS 15 Use for quarter 2: Budgeted produet ion irect materiale Each unit of finished gooda requires two kilograna of d Anticipated purchase price of direct materiale ia 1 per kilogram Direct materials purchase budget for the second quarter would be UNITS TO BE PRODUCED x UNITS OF DM PER FINISHED UNIT a. 20 b. 25 . 35 d. 40 +END INVENTORY BEGIN INVENTORY x PRICE PER UNIT 19. CPA billa for all services rendered (all on credit) Fees are billed twice monthly , on the tenth of the month for the last half of the prior month's fees and the t half of the current month's fees. wentieth of the month for the firat ollowing collection pattern. Past experience has established the f 70 20 Month billed Month following month billed Uncollectible (actual) 40 Fees for services: October November (actual) December (expected) . . January (expected) February (expected) 80 80 40 All services are rendered uniformly throughout the month. What are expected cash collections for December Month Billing8 Percent a. 49 b. 59 . 58 d. 68 20. If a company computes material price variances at the time of purchase, then the inventory of materials would be carried at a. actual quantity at actual price b. actual quantity at standard price c. standard quantity at actual price d. standard quantity at standard price A decrease in production levels within a relevant range would s. decrease variable cost per unit b. decrease total costs e. increase total fixed coste d. increase variable coat per unit In the establishment of a standard cost ayatem, ve standards into the areas of pt each have divided the and standarde 23 standards ATCHING Place the letter that correaponda with your choice beside the tone anaver each] 2 pt each iteme that follow A, absorption costing B. by-products c. cash budget D, contribution margirn B. direct costing F. external reports G. favorable variance H. gross profit I. internal reports J. joint products x main product L. Bales budget M. standard coats N variance analyais O. unfavorable variance 24. Statement of expected cash receipte and disbursements during the budget 25 Sales less variable manufacturing, selling, and adninistrative costs period adjusted for opening and closing cash balancers 26. Costa that are expected to be achieved in a particular product i on process 27- Result when actual costs are less than standard costs 28. Product of limited sales value produced simultaneously with a product of under normal conditions greater value, known as a main product 29. various cost, operating, and financial reports that are prepared dail 30. Dissection of differences arising when actual results do not equal 31.Costing method under which only production costo which tend to vary with veekly, monthly, etc.. for internal management in planning and control operations standards, because of either external or internal factors the volume of production are treated as product costs 2 pt each MATCHING Place the letter that corresponda with your choice beside the items that follow A. direct materials B. direct labor C. factory overhead D. fixed cost E. mixed or semivariable cost F. variable cost G. conversion cost H. prime cost COST BERAVIOR Costs vhich in total remain constant over a relevant range of output while the cost per unit varies inversely with output . 33. Coats which change in total in direct proportion to changes in volume and whose unit cost remains constant, within the relevant range COST ELEMENTSs 34. Materials used directly in the production of a finished product which can be easily traced to the product and which represents a major material cost of producing that product 35. Accumulated indirect materials, indirect labor, and all other indirect manufacturing cost