Hello~ I need the step by step solution for Q ,11, 13 , 14, 17 , 18

1 Test No. Second Midterm Examination ACC3200 Fall 20xx Instructions: 1 You must write your name on this sheet as well as the scantron sheet. 2 All the answers should be entered on the scantron sheet. Your scores are based on the answers on the scantron sheet PROVIDED your show calculation in the exam itself. 3 IMPORTANT: You MUST SHOW how you calculated your answers in the space provided below for each question. If you fail to do so, you will NOT RECEIVE credit for the question even if you show the correct answer on the scantron sheet. 4 You may NOT use any scratch paper. All calculations should be done on the exam itself. The Baruch Honor Code is the standard of professional behavior on this exam. When you have completed your exam, please read the following pledge and add your signature to indicate that you have complied with the Honor Code. I PLEDGE THAT I HAVE NEITHER GIVEN NOR RECEIVED ANY UNAUTHORIZED ASSISTANCE ON THIS EXAM, AND THAT ANY VIOLATIONS OF THE HONOR CODE BY OTHERS THAT I HAVE OBSERVED, OR OTHERWISE BECOME AWARE OF, WILL BE REPORTED BY ME TO THE HONOR COUNCIL. Name (Please print) Last Signature You should hand in BOTH the scantron and this exam. Page 1 of 10 First 2 1 Tigris Corporation uses standard costing. The following data are available for May: Actual quantity of direct materials purchased and used Actual price of direct materials Materials quantity variance Materials spending variance 4,200 $2.50 $580 $1,100 kilograms per kilogram Unfavorable Favorable What is the standard price per kilogram? A. $ 2.62 B. $ 2.24 C. $ 2.90 D. $ 2.38 E. one of the above kilogram kilogram kilogram kilogram 2 MacKenzie Company uses a standard costing system. Their standard cost card for one unit of a product shows the following: Direct materials Direct labor Variable manufacturing overhead Standard Quantity or Hours Standard Price or Rate 10 pounds ? per pound 3.0 hours $16 per hour 3.0 hours $10 per hour The total standard variable cost for one unit of finished product is $120 and the company produces 600 units of finished product in June. Additional information regarding direct materials in June include the following: 5,400 pounds Actual quantity purchased: Actual quantity used in production: 5,200 pounds What is the materials quantity variance for the month? A. $ 3,360 Favorable B. $ 8,400 Favorable C. $ 2,520 Favorable D. $ 840 Favorable E. None of the above Page 2 of 10 3 3 Mississippi Corp has the following budgeted sales for the first 4 months of next year: January February March April Cash $80,000 $60,000 $50,000 $45,000 Credit $350,000 $200,000 $145,000 $130,000 Total Sales $430,000 $260,000 $195,000 $175,000 The Company is in the process of preparing a cash budget and must determine the expected cash collections. Accordingly, the following information has been assembled: Collections on credit sales: Month of sale Month after sale 2nd month after sale 60% 30% 10% The accounts receivable balance on January 1 is: $70,000 Of this amount, $60,000 represents uncollected December sales and $10,000 represents uncollected November sales. The total cash collected in January would be: A. $428,000 B. $230,000 C. $350,000 D. $345,000 E. None of the above 4 Mekong Corporation has budgeted sales and production over the next quarter as follows: Sales in Units Production in Units July 40,000 41,200 August 52,000 52,300 September ? 56,650 October 71,500 The company has 4,000 units of the product on hand on July1. Ending finished goods inventory as a percent of next months sales: Budgeted sales for September in units would be: A. 61,750 B. 55,000 C. 56,650 D. 52,000 E. None of the above Page 3 of 10 10% 4 5 Sumida Corporation uses machine hours (MHs) to apply fixed manufacturing overhead. The information for the year is as follows: Budget Actual Machine Hours 600,000 625,000 FMOH cost $ 300,000 ? FMOH Budget Variance FMOH Volume Variance $ $ 9,000 Favorable 15,000 Favorable Sumida's standard machine hours allowed for actual output was closest to: A. 656,250 MHs B. 570,000 MHs C. 593,750 MHs D. 630,000 MHs E. None of above. 6 Colorado Farm Supply is preparing their budget for the next two quarters. The company requires a minimum cash balance of at least $6,000 at the end of each quarter. The company can borrow money at the beginning of each quarter from their local bank in increments of $1,000 at an interest rate of 2% per quarter. The bank requires cash interest payment at the end of each quarter until the principal is repaid. First Quarter Second Quarter Cash balance, beginning 7,000 ? Cash collection from customers 67,000 80,000 Cash disbursements Purchase of Inventory 53,000 66,000 Selling and administrative expenses 26,000 28,000 What is the ending cash balance for the first quarter? A. $ 7,000 B. $ 6,240 C. $ 6,760 D. $ 6,000 E. None of the above Page 4 of 10 5 Next two questions are based on following: 7 Volga Company is a small wholesaler of peanuts and specialty food products. Sales for the next three months are budgeted as follows: November $330,000 December $340,000 January $330,000 Collections are expected to be: Month of sale: 80% Month following sale: 17% Uncollectible: 3% Cost of goods sold as a percentage of sales is : 75% Ending inventory equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the sale. Other monthly expenses paid in cash are: $21,800 Monthly depreciation is $19,000 and ignore taxes. The cost of December merchandise purchases would be: A. $249,750 B. $428,250 C. $252,750 D. $255,000 E. None of the above 8 The difference between cash receipts and cash disbursements for December would be: A. $63,450 B. $34,550 C. $53,550 D. $56,550 E. None of the above Page 5 of 10 6 Next two questions are based on the following: 9 Danube Fashion sells a line of men's shirts. Danube's actual results and master (static) budget for September 2015 are as follows: Actual Results 5,000 units $ 235,000 $ 145,000 $ 84,000 Shirts Sold Sales Variable Costs Fixed costs Master (Static) Budget 6,000 units $ 300,000 $ 180,000 $ 80,000 What is the activity variance in operating income for September 2015 ? A. $ 34,000 Unfavorable B. $ 14,000 Favorable C. $ 14,000 Unfavorable D. $ 20,000 Favorable E. $ 20,000 Unfavorable 10 What is the overall (net) effect of revenue and spending variances in net operating income for September 2015 ? A. B. C. D. E. $ $ $ $ $ 20,000 14,000 14,000 34,000 34,000 Unfavorable Unfavorable Favorable Unfavorable Favorable Page 6 of 10 7 Next two questions are based on the following: 11 Rio Grande, Inc. makes baseball bats. The company experimented with a new labor mix in September, 2015. The company's standard variable cost per unit information is as follows: Standard Var. Cost $63.00 $10.00 $1.40 $74.40 In September, the company employed 200 assembly workers. They worked an average 25 hours per person at an average rate of $27 per hour. In the months prior to September, the company had 200 assembly workers, consisting of 50 senior workers and 150 junior workers. In September, the company experimented with a new labor mix: more senior workers (paid more but more efficient) and less junior workers. Direct Materials Direct Labor Variable Mf.OH Standard Quantity 3 ounces 0.4 Hours 0.4 Hours Standard Rate $21.00 per ounce $25.00 per hour $3.50 per hour The number of baseball bats produced in September: 15,000 What is the labor rate and labor efficiency variances for Rio Grande, Inc in September? A. B. C. D. E. $ $ $ $ $ 40,000 15,000 15,000 10,000 10,000 Favorable Favorable Unfavorable Unfavorable Favorable $ $ $ $ $ 25,000 25,000 25,000 25,000 25,000 Favorable Favorable Favorable Favorable Unfavorable 12 Would you recommend Rio Grande, Inc (above) to continue the change or not? A. Yes, the new labor mix has a lower rate and higher working efficiency. B. No, the new labor mix has a higher rate and higher efficiency, but cost savings from greater efficiency cannot be offset by the rate increase. C. No, the new labor mix has a higher rate and lower working efficiency. No cost savings can be generated from using the new labor mix. D. Yes, the new labor mix has a higher rate and higher efficiency. Cost savings from higher efficiency exceeds additional costs due to a higher labor rate. E. Yes, the new labor mix has lower a rate and lower efficiency. Cost savings from the lower rate can offset the higher cost associated with more hours worked. Page 7 of 10 8 13 During the past year, Yangtze Company, which uses a standard costing system, applied its variable manufacturing overhead (VMOH) costs to products using machine hour (MH) as the allocation base. Additional information for the year just ended is: Standard VOH rate Actual Results: Total VMOH cost VMOH Efficiency Variance VMOH Rate Variance 4.80 per standard MH $ $ $ 66,824 2,408 Favorable 1,264 Unfavorable If Yangtze's standards call for 2 MHs per unit, actual units produced for the year were: A. 6,842 units B. 13,157 units C. 14,160 units D. 7,080 units E. None of above. 14 Ganges Inc. uses a standard costing system in which variable manufacturing overhead (VMOH) is applied based on standard direct labor hours (DLHs). Partial results for the most recent period were: Budgeted VMOH cost Budgeted units of production Actual VMOH cost incurred Actual DLHs for the period Actual Units Produced VMOH Rate Variance VMOH Efficiency Variance $ $ $ $ 18,600 775 22,620 1,600 750 3,420 1,200 Units DLHs Units Unfavorable Unfavorable Standard DLHs allowed for the period was closest to: A. 1,500 DLHs B. 1,985 DLHs C. 1,316 DLHs D. 1,464 DLHs E. None of above. Page 8 of 10 9 The next two questions are based on the following: 15 St. Lawrence Company is considering the adoption of an activity-based costing (ABC) system because the managers suspect that their traditional costing system distorts the product costs. This company produces and sells two products Generic and HiEnd. Their traditional costing system uses direct labor hours (DLHs) as the allocation base for manufacturing overhead cost. The production managers decided that major activities are Machine setups, Special Processing, and General factory and determined the costs for each activity. They also identified how many setups, MHs, and DLHs for each product requires. Product HiEnd Generic Price $ $ 230 150 DM DLHs/unit $72.00 2.0 $44.00 1.0 The wage rate per hour is: $ Units Total DLH 10,000 20,000 80,000 80,000 20.00 The company collected the data for ABC as follows: Activity Cost Pool Machine setup Special processing General factory Activity Measure # of setups Machine hours DLH Estimated OH cost $462,000 550,000 375,000 $1,387,000 Cost Driver or Activity Measure # of setups Machine hours Direct-labor hours Total Generic 60 8,000 80,000 HiEnd 120 12,000 20,000 Total 180 20,000 100,000 Compared with the unit product cost calculated by the ABC system, what is the distortion (difference) created by the traditional costing system for HiEnd Product? A. B. C. D. E. Under the traditional costing system, the product is overcosted by Under the traditional costing system, the product is undercosted by Under the traditional costing system, the product is overcosted by Under the traditional costing system, the product is undercosted by None of the above $ $ $ $ 62.88 62.88 43.56 43.56 per unit. per unit. per unit. per unit. 16 St. Lawrence has two major customers, who buy 3,000 units of their products. The company spends equal money on customer relations between the two customers A and B. The company wants to compare the customer margin of customer A and B. Total cost of customer relation is: Customer Generic HiEnd $ A 1,000 2,000 10,000 B 2,000 units 1,000 units Which of the following statements is true? (Choose the figures that are closest) A. Both customers are just as profitable for the company because they buy the same total units under ABC. B. Customer margins for customer A is higher than that for B under ABC by: $18,130 C. Customer margins for customer A is lower than that for B under ABC by: $18,130 D. Customer margins for customer A is higher than that for B under ABC by: $30,875 E. Customer margins for customer A is lower than that for B under ABC by: $30,875 Page 9 of 10 10 17 Yukon Children's Clinic allocates service department costs to operating departments using the step-down method. The clinic has two service departments, Administration and Information Technology (IT), and two operating departments, Prenatal and Pediatric. Data concerning those departments follow: Departmental costs Employees PCs Service Department Operating Department Admin. IT Prenatal Pediatric $ 80,910 $ 86,300 $ 577,620 $ 350,250 15 86 95 169 20 30 100 150 Administration costs are allocated first on the basis of employees and IT costs are allocated second on the basis of PCs. The total Pediatric Department cost after allocations is closest to: A. B. C. D. E. $ 453,026 $ 641,255 $ 642,054 $ 453,825 None of the above 18 Thames Electronics Company has two operating divisionsan Analog Division and a Digital Division. The company has a cafeteria that serves the employees of both divisions and pays all the cost of the meals. Budget for cafeteria Cost per meal $ 1.20 Total Fixed cost $ 78,000 The fixed costs of the cafeteria are determined by peak-period requirements. At peak-load, the two divisions are responsible for meals as follows: Analog 56% The % of meals Digital 44% For September, due to unexpected layoffs of employees during the month, the number of meals served to the Analog Division was substantially smaller than the earlier estimate. Analog 88,000 58,000 Cost records in the cafeteria show the following: Estimated number of meals Actual number of meals Actual fixed costs Actual cost of meals $ $ Digital 58,000 58,000 Total 146,000 116,000 81,000 155,800 How much of the actual cafeteria cost should be charged to the two divisions together for September? A. $ 253,200 B. $ 220,200 C. $ 236,800 D. $ 217,200 E. None of the above Page 10 of 10