If you can try and clearly state what you think the answers are, as clear as possible, and try and explain it. It would be greatly appreciated! I am not looking for JUST an answer, I am to understand them! Mainly the calculation questions are ones that I would like you to stress your explanations on!

The use ofa single indirect cost rate is more likely to: A. undercost high volume simple productsS Multiple Choice questions I to 15 are worth one B. overcost high volume low complex products price undercost lower priced products D. overcost higher priced products E. overcost low volume complex products 2. The most important criterion in accurate cost allocations is A. using homogeneous cost pools B. using a simple allocation method C. allocating fixed and variable costs by using the same allocation base D. using multiple drivers for each cost pool. 3. Uniformly assigning the costs of resources to a cost object when those resources are actually usec in a non-uniform way is called: A. activity-based costing B. menu-based-eesting C full product-cost allocation D. cost smoothing or peanut butter costing An analyst conducted a study of a manufacturer's overhead and developed 3 possible equations order to help it estimate its overhead costs. The manufacturing department is currently operatir at 70% of capacity, and has several large cost-plus contracts where it is very important to know 4 the correct amount of overhead costs to allocate to these contracts. The following observations were made by the analyst, expressed in the form Y = a + bX R2 Variables Values a -$20,000 b $120 a $100,000 b $1,000 a $160,000 b $40 Equation 1: 0.45 Y=total overhead costs X# direct labour hours Equation 2: Y=total overhead costs 0.65 X = # sales contracts Equation 3: Y= total overhead costs 0.55 X=# machine hours Which of the following statements is most true: A Equation 2 is acceptable, since it is economically plausible and has the highest R B. Equation 1 is unacceptable, since it has a negative intercept C. Equation 3 is the most attractive model, since it has a high R2 and is plausible D. Equation 2 is the most attractive model, since it has the highest R2 5. The financial statements included in the annual report to the shareholders are least useful to which one ofthe following A. Stockbrokers. B. Bankers preparing to lend money C. Eompeting businesses. (D.'Managers in charge of operating activities 6. The results of regressing Y against X are as follows: Coefficient Intercept Slope 5.23 2-1.Ho 1.54 When the value of X is 10, the estimated value of Y is A. 6.78 B. 8.05 C.)20.63 D. 53.84 Auniversity has installed a new computer system. The system was desi gned and constructed based on theanticipated number of hours of usage required by the various departments according to projections made by the departmental managers. Virtually all of the operating costs of the system are fixed. What would be the most systematic and rational manner in which to allocate the new computer system costs to the various departments? A To each department equally CB By the anticipated number of hours of usage C. By actual usage by each department D. By the revenue generated in each department. All of the following would appear on a projected schedule of cost of goods manufactured 8. except for A ending work-in-process inventory beginning finished goods inventory C. the cost of raw materials used D. applied manu facturing overhead. A company that manufactures furniture is establishing its budget for the upcoming year. All of the following items would appear in its overhead budget except for the overtime paid to the workers who perform production scheduling B. cost of glue used to secure the attachment of the legs to the tables C. fringe benefits paid to the production supervisor D freight charges paid for the delivery of finished good to customers. 9. 10. A major disadvantage ofa static budget is that A. it is more difficult to develop than a flexible budget B. it is made for only one level of activity C. variances tend to be smaller than when flexible budgeting is used D. variances are more difficult to compute than when flexible budgeting is used. 11. Arkin Co.'s controller has prepared a flexible budget for the year just ended, adjusting the original static budget for the unexpected large increase in the volume of sales Arkin's costs are-mostly variable. The controller is pleased to note that both actual revenuds and actual costs approximated amounts shown on the flexible budget. If actual revenues and actual costs are compared with amounts shown on the original (static) budget, what variances would arise? A. Both revenue variances and cost variances would be favorable Revenue variances would be favorable and cost variances would be unfavorable Revenue variances would be unfavorable and cost variances would be favorable D. Both revenue variances and cost variances would be unfavorable. ATS MPS 12. The relevant range refers to the activity levels over which A. cost relationships hold constant B. costs fluctuate C. production varies D. relevant costs are incurred 13. Normal costing systems are said to offer a user several distinct benefits when compared with actual costing systems. Which one of the following is not a benefit associated with normal costing systems? AMore timely costing of jobs and products B. A smoothing of product costs throughout the period C. Improved accuracy of job and product costing D.A more economical way of attaching overhead to a job or product. 14. A company is considering the implementation of an activity-based costing and management program. The company A. should focus on manufacturing activities and avoid implementation with service type functions B would probably find a lack of software in the marketplace to assist with the related recordkeeping C.would normally gain added insights into causes of cost D. would likely use fewer cost pools than it did under more traditional accounting methods. 15. A sawmill processes trees into raw lumber products. At the cut-off point, each tree is harvested into Premium Wood, 2nd GradeWood and Sawdust. The weight (in tons) and sales value of each of these items at cut-off is as follows: 2nd Grade Wood $11,200 Sawdust $500 4 tons 201 Premium Wood $8,000 2 tons boeo Item Harvested: Sales Value (per tree): Weight (in tons) 3 tons 3 As well, each of these items can be further processed at additional costs: Processed from: 2nd Grade Wood 2nd Grade Boards $2,400 $6,200 Premium Wood Premium Boards Sawdust Processed into: Particle Boards $1,000 S1,520 Additional Cost (per tree): Final Value (per tree) $ 2,500 $14,000 nae Should Sawdust be further processed into Particle Boards? Yes, they should process Sawdust into Particle Boards. B No, they should sell the Sawdust and not process it further into Particle Boards. C. It is not possible to answer without knowing the total amount of Joint Costs D. It is not possible to answer without knowing which joint cost allocation method is used. E. Both C and D Questions I6 to 20 are worth 2 maiRL 16. What is the break-even point assuming the sales mix consists of two units of Product A and one unit of Product B? $4.00 $1.00 $6.00 $2.00 40,000 Product A: Revenue Variable Cost Product B: Revenue Variable Cost Total fixed costs are A. 2.000 units of B and 4,000 units of A B. 2.025 units of B and 4,050 units of A C. 4,025 units of B and 8,050 units of A D. 4,000 units of B and 4,000 units of A E. 4,000 units of B and 8,000 units of A Use the following information to answer questions 17 and 18 17/ Helmer's Rockers manufactures two models, Standard and Premium. Weekly demand is estimated to be 100 units of the Standard Model and 70 units of the Premium Model. The following per unit data apply: Standard Premium $18 Contribution margin per unit Number of machine-hours required $20 3 4 What is the contribution margin per unit? A. $18 for Standard, $20 for Premium, B. $54 for Standard, $80 for Premium. C. $15 for Standard, $16 for Premium. D. $6 for Standard, $5 for Premium. E. $5 for Standard, $6 for Premium. 18. If there are 496 machine-hours available per week, how many rockers of each model should Jim Helmer produce to maximize profits? A. 100 units of Standard and 54 units of Premium B 72 units of Standard and 70 units of Premium C. 100 units of Standard and 70 units of Premium D.85 units of Standard and 60 units of Premium E. 100 units of Standard and 49 units of Premium 1244 163 Use the following information to answer questions 19 and 20: Budget Direct Labour Costs $360,000 25,000 $600,000 Actual $420,000 26,500 $693,000 Beginning $14,000 $ 31,000 $ Ending $20,000 $35,000 Work in Progress Finished Goods Direct Labour Hours Overhead Costs Materials 0 0 Overhead is allocated on Direct Labour costs using Normal Costing Materials Purchased during the year were $208,000. All materials are Direct Materials. 19. What is the Cost of Goods Manufactured? A. 1,299,997 B. 1,300,000 C. 1,310,000 D. 1,318,000 E. 1,322,000 20. What is under/over applied Manufacturing Overhead? A. 4,000 over applied B. 4,000 under applied C. 7,000 over applied D. 7,000 under applied E. None of the above The use ofa single indirect cost rate is more likely to: A. undercost high volume simple productsS Multiple Choice questions I to 15 are worth one B. overcost high volume low complex products price undercost lower priced products D. overcost higher priced products E. overcost low volume complex products 2. The most important criterion in accurate cost allocations is A. using homogeneous cost pools B. using a simple allocation method C. allocating fixed and variable costs by using the same allocation base D. using multiple drivers for each cost pool. 3. Uniformly assigning the costs of resources to a cost object when those resources are actually usec in a non-uniform way is called: A. activity-based costing B. menu-based-eesting C full product-cost allocation D. cost smoothing or peanut butter costing An analyst conducted a study of a manufacturer's overhead and developed 3 possible equations order to help it estimate its overhead costs. The manufacturing department is currently operatir at 70% of capacity, and has several large cost-plus contracts where it is very important to know 4 the correct amount of overhead costs to allocate to these contracts. The following observations were made by the analyst, expressed in the form Y = a + bX R2 Variables Values a -$20,000 b $120 a $100,000 b $1,000 a $160,000 b $40 Equation 1: 0.45 Y=total overhead costs X# direct labour hours Equation 2: Y=total overhead costs 0.65 X = # sales contracts Equation 3: Y= total overhead costs 0.55 X=# machine hours Which of the following statements is most true: A Equation 2 is acceptable, since it is economically plausible and has the highest R B. Equation 1 is unacceptable, since it has a negative intercept C. Equation 3 is the most attractive model, since it has a high R2 and is plausible D. Equation 2 is the most attractive model, since it has the highest R2 5. The financial statements included in the annual report to the shareholders are least useful to which one ofthe following A. Stockbrokers. B. Bankers preparing to lend money C. Eompeting businesses. (D.'Managers in charge of operating activities 6. The results of regressing Y against X are as follows: Coefficient Intercept Slope 5.23 2-1.Ho 1.54 When the value of X is 10, the estimated value of Y is A. 6.78 B. 8.05 C.)20.63 D. 53.84 Auniversity has installed a new computer system. The system was desi gned and constructed based on theanticipated number of hours of usage required by the various departments according to projections made by the departmental managers. Virtually all of the operating costs of the system are fixed. What would be the most systematic and rational manner in which to allocate the new computer system costs to the various departments? A To each department equally CB By the anticipated number of hours of usage C. By actual usage by each department D. By the revenue generated in each department. All of the following would appear on a projected schedule of cost of goods manufactured 8. except for A ending work-in-process inventory beginning finished goods inventory C. the cost of raw materials used D. applied manu facturing overhead. A company that manufactures furniture is establishing its budget for the upcoming year. All of the following items would appear in its overhead budget except for the overtime paid to the workers who perform production scheduling B. cost of glue used to secure the attachment of the legs to the tables C. fringe benefits paid to the production supervisor D freight charges paid for the delivery of finished good to customers. 9. 10. A major disadvantage ofa static budget is that A. it is more difficult to develop than a flexible budget B. it is made for only one level of activity C. variances tend to be smaller than when flexible budgeting is used D. variances are more difficult to compute than when flexible budgeting is used. 11. Arkin Co.'s controller has prepared a flexible budget for the year just ended, adjusting the original static budget for the unexpected large increase in the volume of sales Arkin's costs are-mostly variable. The controller is pleased to note that both actual revenuds and actual costs approximated amounts shown on the flexible budget. If actual revenues and actual costs are compared with amounts shown on the original (static) budget, what variances would arise? A. Both revenue variances and cost variances would be favorable Revenue variances would be favorable and cost variances would be unfavorable Revenue variances would be unfavorable and cost variances would be favorable D. Both revenue variances and cost variances would be unfavorable. ATS MPS 12. The relevant range refers to the activity levels over which A. cost relationships hold constant B. costs fluctuate C. production varies D. relevant costs are incurred 13. Normal costing systems are said to offer a user several distinct benefits when compared with actual costing systems. Which one of the following is not a benefit associated with normal costing systems? AMore timely costing of jobs and products B. A smoothing of product costs throughout the period C. Improved accuracy of job and product costing D.A more economical way of attaching overhead to a job or product. 14. A company is considering the implementation of an activity-based costing and management program. The company A. should focus on manufacturing activities and avoid implementation with service type functions B would probably find a lack of software in the marketplace to assist with the related recordkeeping C.would normally gain added insights into causes of cost D. would likely use fewer cost pools than it did under more traditional accounting methods. 15. A sawmill processes trees into raw lumber products. At the cut-off point, each tree is harvested into Premium Wood, 2nd GradeWood and Sawdust. The weight (in tons) and sales value of each of these items at cut-off is as follows: 2nd Grade Wood $11,200 Sawdust $500 4 tons 201 Premium Wood $8,000 2 tons boeo Item Harvested: Sales Value (per tree): Weight (in tons) 3 tons 3 As well, each of these items can be further processed at additional costs: Processed from: 2nd Grade Wood 2nd Grade Boards $2,400 $6,200 Premium Wood Premium Boards Sawdust Processed into: Particle Boards $1,000 S1,520 Additional Cost (per tree): Final Value (per tree) $ 2,500 $14,000 nae Should Sawdust be further processed into Particle Boards? Yes, they should process Sawdust into Particle Boards. B No, they should sell the Sawdust and not process it further into Particle Boards. C. It is not possible to answer without knowing the total amount of Joint Costs D. It is not possible to answer without knowing which joint cost allocation method is used. E. Both C and D Questions I6 to 20 are worth 2 maiRL 16. What is the break-even point assuming the sales mix consists of two units of Product A and one unit of Product B? $4.00 $1.00 $6.00 $2.00 40,000 Product A: Revenue Variable Cost Product B: Revenue Variable Cost Total fixed costs are A. 2.000 units of B and 4,000 units of A B. 2.025 units of B and 4,050 units of A C. 4,025 units of B and 8,050 units of A D. 4,000 units of B and 4,000 units of A E. 4,000 units of B and 8,000 units of A Use the following information to answer questions 17 and 18 17/ Helmer's Rockers manufactures two models, Standard and Premium. Weekly demand is estimated to be 100 units of the Standard Model and 70 units of the Premium Model. The following per unit data apply: Standard Premium $18 Contribution margin per unit Number of machine-hours required $20 3 4 What is the contribution margin per unit? A. $18 for Standard, $20 for Premium, B. $54 for Standard, $80 for Premium. C. $15 for Standard, $16 for Premium. D. $6 for Standard, $5 for Premium. E. $5 for Standard, $6 for Premium. 18. If there are 496 machine-hours available per week, how many rockers of each model should Jim Helmer produce to maximize profits? A. 100 units of Standard and 54 units of Premium B 72 units of Standard and 70 units of Premium C. 100 units of Standard and 70 units of Premium D.85 units of Standard and 60 units of Premium E. 100 units of Standard and 49 units of Premium 1244 163 Use the following information to answer questions 19 and 20: Budget Direct Labour Costs $360,000 25,000 $600,000 Actual $420,000 26,500 $693,000 Beginning $14,000 $ 31,000 $ Ending $20,000 $35,000 Work in Progress Finished Goods Direct Labour Hours Overhead Costs Materials 0 0 Overhead is allocated on Direct Labour costs using Normal Costing Materials Purchased during the year were $208,000. All materials are Direct Materials. 19. What is the Cost of Goods Manufactured? A. 1,299,997 B. 1,300,000 C. 1,310,000 D. 1,318,000 E. 1,322,000 20. What is under/over applied Manufacturing Overhead? A. 4,000 over applied B. 4,000 under applied C. 7,000 over applied D. 7,000 under applied E. None of the above