Managerial Accounting HW

1.

The Refining Department of Kristian, Inc. had 85,000 pounds of materials to account for in the current month. Of the 85,000 pounds, 65,000 pounds were completed and transferred to finished goods, and the remaining 20,000 pounds were 50% complete. The materials required for production are added at the beginning of the process. Conversion costs are added evenly throughout the refining process. The weighted - average method is used. Calculate the total equivalent units of production for direct materials. O A. 75,000 pounds O B. 85,000 pounds O C. 65,000 pounds O D. 10,000 poundsBorsetta, Inc. manufactures two kinds of bagstotes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $25,250. Additional estimated information is given below. Totes Satchels Direct materials cost per unit $30 $40 Direct labor cost per unit $51 $61 Number of units 500 400 Calculate the amount of overhead to be allocated to Satchels, if the actual units produced and direct labor costs equal the estimated amounts. (Round any percentages to two decimal places and your nal answer to the nearest dollar.) 0 A. $12,346 0 B. $495 0 C. $24,400 0 D. $12,903 Galley Company, a manufacturer of small kitchen appliances, had the following activities, allocated costs, and allocation bases: Activities Allocated Costs Allocation Base Account inquiry (hours) $60,000 2,700 hours Account billing (lines) $49,000 16,000 lines Account verification (accounts) $14,000 21,000 accounts Correspondence (letters) $11,000 1,000 letters The above activities are carried out at two of its regional offices. Activities Northeast Office Midwest Office Account inquiry (hours) 140 hours 250 hours Account billing (lines) 10,000 lines 7,000 lines Account verification (accounts) 1,700 accounts 700 accounts Correspondence (letters) 50 letters 110 letters What is the cost per line for the account billing activity? (Round your answer to the nearest cent.) . . . . . O A. $3.06 O B. $18.15 O C. $3.75 O D. $22.22Williams Company has the following information: Basic Model Basic Model Traditional allocation ABC Allocation Net Sales Revenue $480 $480 Cost of Goods Sold 290 260 Using ABC allocation, how many percentage points (higher or lower) is the gross prot percentage than if using the traditional allocation method? 0 A. 45.83 percentage points lower 0 B. 6.25 percentage points higher 0 C. 6.25 percentage points lower 0 D. 45.83 percentage points higher Bar None Legal Services, Inc is a consulting rm that offers optimal legal solutions It allocates indirect costs using a single predetermined overhead allocation rate with direct labor hours as the allocation base The estimated indirect costs for this year amount to $100,000t The company is expected to work 5,000 direct labor hours during the year. The direct labor rate is $200 per hourt Clients are billed at 120% of direct labor cost Last month, Bar None's consultants spent 175 hours on Henderson, Inc Calculate the total costs assigned and allocated to Henderson O A. $38,500 0 a. $3,500 0 c. $35,000 0 D. $122,500 Under ajust - in - time costing system, the journal entry for $18,000 incurred for labor costs and $9,000 of factory deprecation would be: O A. Conversion Costs 27,000 Wages Payable 18,000 Accumulated Depreciation 9,000 O B. Conversion Costs 27,000 Cash 27,000 0 c. Accounts Payable 27,000 Conversion Costs 18,000 Accumulated Deprecation 9,000 O D. Conversion Costs 27,000 Accounts Payable 18,000 Wages Payable 9,000 If a company undertakes a quality improvement program, it would spend an additional $350,000 on raw materials inspection and an additional $290,000 on nish goods inspection. This quality improvement program would save the company $430,000 in rework. What would be the cost or savings of undertaking this quality improvement program? O A. $210,000 in additional costs 0 B. $210,000 in savings O C. $1,070,000 in additional costs 0 D. $1,070,000 in savings Product A has a variable cost of $15 per unit and product B has a variable cost of $10 per unit. If a company makes 160 units of Product A and zero (0) units of Product B, what is the total variable costs for both products? 0 A. $4,800 0 B. $4,000 0 c. $1,600 0 D. $2,400 Murray Company provides the following information about its product: Operating income $380,000 Sales price per unit 403 Variable cost per unit 230 Total fixed costs 53,000 What is the total contribution margin? O A. $226,000 O B. $433,000 O C. $659,000 O D. $327,000If the sales price of Product X is $18.00 per unit and unit fixed cost is $6.00, its contribution margin per unit is $12.00. . . . . O True O False