MULTIPLE CHOICE

Quiz 1 (Overview and Cost Beh X Users/user/AppData/Local/Temp/Rar$Dla2912.47293/Quiz%201%20(Overview%20and%20Cost%20Behavior).pdf C Page view A Read aloud Draw Highlight Erase G Mr. Samaheda was intially planning to use the least squares method but later on assessed that the cost outweighed its benefits. Thus, he used the high-low method instead to estimate the overhead costs for the following year. 21. How much is the prime cost for 20207 P78,341,500 b.) P89,258,160 P37,823,160 F82,341,060 22. How much is the total goods put into process for 2020? a.) P78,341,500 b.) P89.258,160 C.) P37.833,160 P62.341.660 23. How much is the cost of goods sold for 2020? P58.996,551 P39,304.029 P78.341.500 P88.187,761 24. How much is the estimated annual fixed overhead cost? P89.590 F1.075.190 P93.253 PL.119.036 25, What is the estimated total factory overhead for the following year f 2,500 aircran engines are expected to be produced? P14.838.199 P14.502.930 P14.748,600 P15.823.790Quiz 1 (Overview and Cost Beh X 14+ C:/Users/user/AppData/Local/Temp/Rar$Dla2912.47293/Quiz%201%20(Overview%20and%20Cost%20Behavior).pdf CG Page view A Read aloud Draw Highlight Erase 21. Differential costs are always incremental costs B.) TRUE TALSO 22. Which of the following statement is true? a.) Sunk costs are considered in decision making purposes b.) An opportunity cost is more likely to appear in two independent events c.) Commission costs are more likely to be fixed in nature d.) Indirect costs are related to the cost object 23. Within the relevant range, a 5% increase in an activity level will result to a 3%% increase in the related total variable cost TRIIF FALSE 24. Which of the following can be considered as indirect materials in a business engaged in the clothing industry: a.) Cotton b.) Linen a.) Polyester d.) Sewing Thread 25. The slope of the cost function is also known as: a.) Fixed cost b.) Total cost c.) Cost driver d.) Variable cost per unit 26. The product of the independent variable and the slope of the cost function is: A ) Total fixed most b.) Total cost c) Total variable cost d.) Incremental cost 24 lotal cost may be affected by two or more vanables TRUE FALSECG Page view Read aloud Draw Highlight 2 Er 1. The main focus of managerial accounting is a.) Decision making b.) Preparation of financial statements c.) Preparation of reports by management d.) Process improvement 2. This type of step cost is more directly related to the activity level a.) step fixed cost b.) step variable cost 3. When the management is asking for feedbacks from employees and other personnel, management is performing a.) Planning b.) Directing c.) Controlling d.) Decision making 4. Managerial accounting uses financial and nonfinancial information a. TRUE FALSE 5. Period costs are treated the same in any industry a.) TRUE FALSE 6. Within the relevant rage, a 5% increase in an the activity level will result to a 5% increase in the variable cost per unit TRUE FALSE 7. Incremental costs are costs that are relevant in decision making a.) TRUE FALSE 8. Opportunity costs may exist when there are mutually exclusive alternatives a.) TRUE FALSE to search COST ACCOUNTIN.. secondyear second... ACT1107.zip (evalu... Quiz 1 (Overview a...[ Page view A Read aloud Draw Highlight Eras 10. The operating profit of the entity is P120,000. Total fixed cost amounted to P500,000. Sales price por unit is P40. The company produced 20,000 units. How much is the variable cost per unit? a-) 12 11 10 11-14 The following information were obtainted by the managerial accountant of CMA Company. Direct Overhead labor Costs Month hours January 120 P443,565 February 252 P630,346 March 201 P534.832 April 304 P902,672 May 384 P891,461 June 274 P672.569 July 296 P736,591 The mutnagament accountants of CMA Company uses least squares method in estimating posts 11. What is the cost function to be used in estimating overhead costs for the month of August? a.) y = 225,241 + 1607 (x) b.) y = 205.240 + 1757 (x) .) y = 198.412 + 1801 (x) d.) y = 250,000 + 1945 (x) 12. How much is the estimated monthly food overhead? P198.412 P225.241 P250,000 P205.240 13. What is the value of the slope? P1901 b.j P1.607 F1 757 P1945 14. How much is the estimated cost for the month of August if b rect labor hours is estimated to be 321 for the coming month? earch Joji & Jackson Wan.. secondyear second.. ACT1107.zip (evalu... Quiz 1 (Overview a..new.pdf Quiz 1 (Overview and Cost Beh. X + File C:/Users/user/AppData/Local/Temp/Rar$Dla2912.47293/Quiz%201%20(Overview%20and%20Cost%20Behavior).pdf CD Page view A Read aloud Draw Highlight Erase always finished within the day 33. Based on the cost behavior above classify the total costs per day according to behavior Variable Fixed Cost cost P1,150 P505 P1,650 P1,150 P1,650 P1.250 34. In the previous year, Mr. Sajol has been holding 2 simultaneous tournaments within a day. His daily ivarage back then was 600 players. The tournaments are over when there are champions in each tournament. How much is the total fixed cost during the previous period? (assume no other changes in cost) a) P2,000 P2.150 P1,150 P1,650 35. Mr. Sajol plans to expand his jackstone tournament by next year, by holding 3 simultaneous tournaments. He is expecting a 1,000 dasy attendance. Unfortunately the small lot can only accommodate a maximum of 600 people, Thus, he is deciding to rent out another small area for P1,000 which he will also be needing another best. Considering these factors the rent and host fees are most likely to be: a.) Fixed costs 6. Variable costs Mixed costs d ) Stop costs to searchQuiz 1 (Overview and Cost Beh : x + C:/Users/user/AppData/Local/Temp/Rar$Dla2912.47293/Quiz%201%20(Overview%20and%20Cost%20Behavior).pdf [ Page view A Read aloud Draw " Highlight Erase 50 60 70 17. In a certain period the highest cost and the lowest cost amounted to 171,000 and 94,000, respectively. The level of activity at the highest and lowest point were 100 and 27 respectively how much is the variable cost per unit? P1,094 P1.055 P1,071 P1,012 18.20. The following is the cost function of the company's overhead: Total overheed = 60,000 + S(x) Where x = machine hours It takes 0.5 machine hours to produce 1 unit The company's production capacity in units are as follows: Theoretical capacity 250.000 Practical capacity 150,000 Normal capacity 100.000 18. How much is the company's total variable coul? P375,000 P750.909 500.0DO 1250.000 10. What is the companies total predetermined factor overheld rate per machine hour? 6.2 58erview.pdf Quiz 1 (Overview and Cost Beh. x + OFile C:/Users/user/AppData/Local/Temp/Rar$Dla2912.47293/Quiz%201%20(Overview%20and%20Cost%20Behavior).pdf C Page view A Read aloud Draw Highlight Erase 13. What is the value of the slope? P1,901 P1,607 P1,757 P1,945 14, How much is the estimated cost for the month of hupus in direct labor hours is estimated to be 32 1 for the coming month? P760.837 D.) 1741.088 c.) P776.533 P874,345 15. The equation y = 143,000 # 3-5 (x) refers to the cost of electricity and a is the number of kilowatt hours consumed. For the month of July. 2 1:900 kilowatts were consumed. How much is the total cost? 216.500 214.000 320,000 315,000 18 Revenue for the month of Jung is P20,000.000. Each product is sold for P 100. Total fixed cost for the month is P12.000.000 while total variable cost is P8.080,000. How much is the fixed cost por una at this activity level? 40 60 17. In a certain period the highest cost and the lowest cast amounted to 175.090 and 94.000. respectively The level of outivity at the highest and lowest poat were 100 and 27 respectively how much is the venable cost per unit? here to search Joji & Jackson Wan.. secondyear second,. ACT1107 zip (evalu. Quiz 1 (Overview.a.Overview-pelf Quiz 1 (Overview and Cost Beh File C:/Users/user/AppData/Local/Temp/Rar$Dla2912.47293/Quiz%201%20(Overview%20and%20Cost%20Behavior).pdf [ Page view A Read aloud Draw Highlight Erase 29. What is the monthly cost formula? a.) y - 9,138 + 12.97(x) b.) y - 109,85/ 1 32.9/4 c) y - 9.325 + 13.4(x) d.) y - 94,599 + 13.4(x) 30. During the month of March total fixed costs incurred was P1.500,000. Total units produced was 150.900 and was sold at P30. Operating profit was P156,000. How much was the variable cost during the month of March? 2.844,000 4.500,000 18.96 19.20 31. Jhojan eh, lod, thes un following budgeted uvefreed fumula for 2020, y - 1,008,909 - 25 per machine hours. The formula is expected to continue until the neat five years prior to review of current business processes. If for the month of January 2021, the company incurred P333,914. Each unit requires 2 machine hours to complete! How many units were produced during the month of January? a.) 13,461 b.) 10.000 () 5.000 d.) 26,922 32 Transportity operates a fleet of delivery trucks in Luzon. The company has determined that if a truck Is driven : 105.000 kilometeres during a year, the average operating costs is P11 40 per kilometer. If a truck is driven only 70.000 kilometers during a year, the average operating cost increases to P13.4 per kilometer. assuming that in a given year, a truck were driven 80.000 kilometers, what total cost would you expect to be incurred. P1 012 000 6. P1,407.000 P1 225.143 PL.072.080 39-35 Mr. Sajol is renting a small area for P1.QUU per day where he is holding a jackstone tournament. [ here Is a P20 pesos registration fee per player. There are 250 players on a daily average. He also hires an emcee to host the tournament to keep things alive. which costs him P150 per day. Mr. Sajol gives each player a jackstore pack costing PS pesos. The champion for each day is awarded P500. Jackstone tournaments are always finished within the day.CL Page view A" Read aloud Draw Highlight 20. The practical capacity should be used in the determination of the predetermined overhead rate a.) TRUE b.) FALSE 21-27. Mr. Samaheda is a management accountant of an aircraft engine manufacturer and gathered the following cost information during 2020: Direct Overhead labor Costs Month hours January 120 P443,565 February 252 P830,346 March 201 P534,832 April 394 P902.572 May 384 P891:461 June 274 P672,569 July 296 P736.591 August 457 P1,224,619 September 401 P1.002.894 October 364 P801 246 November 520 P1.623.451 December 478 P1.452,514 Additional Information: 1. Cost of goods manufactured totalled - P49, 150,290 2. Direct materials purchased amounted to . PGO,425,000 3. Direct materials inventory increased by P 9,000,000 3. WIP Inventories have no beginning balance 4. 2 direct labor hours are needed to produce 1 unit. 5. The workers involved in the production costs 6,500 per hour. 6. Finished goods inventory decreased by P9.846.261 7. The practical capacity of the company is 4980 hours Mr. Sumsheda was intially planning to use the least squares method but later on assessed that the cost outweighed its benefits. Thus. he used the high low method instead to estimate the overhead costs for the following year 21 How much is the prime post for 20207 P78 341,500 P89/258.160 P37.833.100 to search Joji & Jackson Wan... secondyear second... ACT1107 zip (evalu.. Quiz 1 (Overview a..e C:/Users/user/AppData/Local/Temp/Rar$Dla2912.47293/Quiz%201%20(Overview%20and%20Cost%20Behavior).pdf Page view A Read aloud Draw Highlight 4th quarter 37,000 P450,000 The expected units to be produced is 2,000,000 in 2021. 6. Using the high-low method method, how much is the estimated monthly fixed cost for 2021? a.) P279,200 P93,067 C.) 2.359.200 P3.196,800 7. How much is the estimated variable cost per unit using the high low method? P10.40 b.) P3.47 P69.33 P1.56 8. What is the formula to be used in the computation of the annual budgeted overhead for 2021? a.) y = 2.093,364 + 12.3 (x) b.) y = 677.788 + 12.3 (x) c.) y = 124.980 + 12.3 (x) d.) y= 169.447 + 12.3 (x) 9. The cost function is P4.000,000 + 34 (x]. What is the activity level at which total cost should equal P12.568,034? 252,000 252,001 252.002 252.003 10 The operating profit of the entity is P120,000. Total fred cost amounted to P500.000. Sales price perIGE Quiz 1 (Overview and Cost Beh le C:/Users/user/AppData/Local/Temp/Rar$Dla2912.47293/Quiz%201%20(Overview%20and%20Cost%20Behavior).pdf + [ Page view A Read aloud MeJa A Highlight Erase Problems: MasterPat Corporation is in the process of developing a cost function that can be used for predicting future costs. In order to do this its managerial accountant gathered the following information for the first three quarters: Units produced Manufacturing costs 1st quarter 501,000 P1,669.901 2nd quarter 672.100 P2.201,231 ard quarter 469,200 P1,702.412 1. Using the high-low method, how much is the estimated total cost of manufacturing if 701,000 units is expected to be produced during the last quarter? P2.290,976 P2.281.631 P2.272.280 P2,100,000 2. What is the annual budgeted cost formula for the year 2020? a.) y = 114,107 + 3.11 (x) b.) y = 456.528 + 3.11 (x) c.) y = 548,908 + 2.46 (x) d.) y = 2,195,633 + 2.46 (x) For numbers 3-5: Mr. Errol is the management accountant of a corporation. He is in the process of estimating the costs for the month of May. He gathered the following cost information from the previous months. Machine hours used Maintenance cost January 461 P1 459.273 February P1.723.008 March 185 P924.650 242 P1.123,407 May 727 3. What is the cost formula used by Mr. Errol to estimate the cost for may? a y = 591,525 + 1.979.54 (x) D.J y = 498.121 + 2,001 12(x) rch Joji & Jackson Wan. secondyear second.. = ACT1107.zip (evalu.. Quiz 1 (Overview a.File C:/Users/user/AppData/Local/Temp/Rar$Dla2912.47293/Quiz%201%20(Overview%20and%20Cost%20Behavior).pdf [ Page view Read aloud Draw Highlight 15. Variable costs par unit within the relevant range a.) Remains constant b.) Fluctuates directly with the activity c.) Varies inversely with the activity d.) Are always differential 16. When the slope of the variable cost line is flatter, this means that: a.) Higher leverage b.) The activity has a low influence on total variable cost c.) Total variable cost per unit is higher d.) The activity has a high influence on total variable cost 17. Management accounting information are usually detailed in nature TRUE FALSE 18. Managerial accounting is deemed to be successful when: a.) Management has decreased its costs b.) Management has made a decision c.) Special reports have been issued to internal users J.) Management has achieved one of its organizational guals 19: The higher the activity level. the higher the total fixed cost TRUE b.) FALSE 20. A major objective of the high-low method of estimation is: a.) to determine fixed costs b.) to prepare reports for management c) determine the relevant range d.) to develop a function to predict future costs 21 Differential posts are always incremental costa TRUEPDE Quiz 1 (Overview and Cost Beh X File C:/Users/user/AppData/Local/Temp/Rar$Dla2912.47293/Quiz%201%20(Overview%20and%20Cost%20Behavior).pdf CD Page view A Read aloud Draw Highlight Erase d.) P15,823,790 26. The company is currently operating at its normal capacity. How much is the predetermined fixed overhead per direct labor hour? a.) P21.64 b.) P259.65 P215.90 P17.99 2 /. What is the formula to be used for the monthly estimation of total overhead costs? a.) y = 89.599 + 2,949(x) b.) y = 1,075,190 + 2,949(x) c.) y = 93.253 + 2,949(x) d.) y = 1,19,036 + 2.949(x) 28-29 Tiktiktok Inc. is trying to establish its formula for its overhead estimation. Its management accountant has gathered the following information: Units produced Manufacturing costs January 40.000 P657.000 February 80,000 P1.147,240 March 32.000 P524.690 28. Using the high-low method, how much is the estimated total cost of manufacturing if 21.000 units is expected to be produced during the month of May? a.) P272.365.63 P382.022.29 C.) P148.924.63 P150 56R 20 29. What is the monthly cost formula? e.) y = 9.138 + 12.9700 D.) y = 109.65/ + 12.9/09 0.Jy = 9.325 + 13.409 searchFile C:/Users/user/AppData/Local/Temp/Rar$Dla2912.47293/Quiz%201%20(Overview%20and%20Cost%20Behavior).pdf CG Page view Read aloud Draw Highlight Erase February 559 P1,723,098 March 185 P924,650 April 242 P1,123,467 May 604 3. What is the cost formula used by Mr. Errol to estimate the cost for may? a.) y - 591,525 + 1.979.54 (x) b.) y = 448,121 + 2.001.12 (x] cj y = $12,429 + 1,/42.01 () d.) y = 550,000 + 2 200.00 (x) 4. How much is the estimated monthly fixed cost? P591 525 b.) P448 121 P512.429 P550,000 5, How much is the estimated total cost for the month of May? 1.656.798 1 564.603 1.787.164 1,878.800 8 John DanielPadilla Corp is in the process of preparing as budget for 2021 for its overhead costs. The cost information for 2060 is as follows Machirin Hours Overhead 10.15 per Costs uriti Lit quarter 27.000 1560.000 and quarter $1.000 P780.090 and quarter 52.090 P820.000 4th quarter 37.080 to search Joji & Jackson Wan- secondyear second. BE ACT1 107.zip (evalu.. Quiz 1 (Overviewra-CL Page view Read aloud Draw Highlight 9. Which of the following costs is more likely to be a variable cost? a.) Administrative costs b.) Marketing costs c.) Selling costs d.) Maintenance costs 10. The difference between a step fixed cost and step variable cost is the size of the increases when activity levels are breached a.) TRUE b.) FALSE 11. The independent variable is also known as the cost driver a. TRUE b. ) FALSE 12. The scattergraph method is much more reliable than the high-low method because: a.) It bases its solutions on two observations only b.) The computation is relatively easy c.) It uses all data points d.) Different persons might draw different lines through data points 13. The relevant range is the range of activities of the company where: a.) Costs may vary b.) Costs are constant c.) Costs relationships exists d.) Cost relationships are valid 14. The closeness of the activity between the cost and the cost driver/ activity is called a.) Regression b.) coeffectent of determination c.) correlation d.) cost function 15. Variable costs per unit within the relevant ranks search COST ACCOUNTIN... secondyear second... ACT1107.zip (evalu. Quiz 1 (Overview a..sers/user/AppData/Local/Temp/Rar$Dla2912.47293/Quiz%201%20(Overview%20and%20Cost%20Behavior).pdf ( Page view A Read aloud Draw Highlight 28. When the management performs organizational tasks on a daily basis, the management is deemed to be performing: a.) Decision making b.) Controlling c.) Directing d.) Planning 29. Management accountants performs a cross-functional role in the organization a. TRUE b. ) FALSE 30. Which technical standard requires a management accountant to conduct himself in a high standard of ethical conduct? a.) Competence b.) Confidentiality c.) Integrity d.) Objectivity