Please help me with those cost accounting questions too as last time. I got 93 out of 100 last time.
1. A company is building a widget. During the current year, a widget requires direct materials with a cost of $300. The company must also spend $200 for direct labor. Finally, factory overhead related to the production of a widget is $100. What is the prime cost associated with a widget? A. 100 B. 400 C. 300 D. 500 2. A company is building a widget. During the current year, a widget requires direct materials with a cost of $500. The company must also spend $600 for direct labor. Finally, factory overhead related to the production of a widget is $100. What is the conversion cost associated with a widget? A. 600 B. 900 C. 700 D. 800 3. Nash accounting services pays $2,500 a month for a tax preparation software license. In addition, variable charges incurred average $50 for every tax return the firm prepares. Determine the cost per unit if the firm expects to prepare 150 tax returns. Round to nearest Cent. A. $70.50 B. $66.67 C. $55.00 D. $52.50 4. For 2013, Lorenzo Auto has a monthly overhead cost formula of $44,000 + $8 per direct labor hour. The firm's 2013 annual capacity is 70,000 direct labor hours to be incurred evenly each month. What is the total overhead to be applied per unit of product in 2013? A. $560,000 B. $885,000 C. $1,088,000 D. $1,000,500 5. The W Hotel has gathered the following information on its utility cost for the past 6 months. Machine Hours Utility Cost 1300 $940 1700 $1075 1250 $900 1800 $1132 1900 $1160 1500 $990 Using the high-low method and considering there are NO outliers, determine the cost formula for utility cost. A. y = $400 + .40X B. y = $400 + .60X C. y = $600 + .40X D. y = $600 + .60X 6. Using the formula from Question #11, what would be the total cost if the hotel used 1200 Machine hours for the month of March? A. $1000 B. $880 C. $420 D. $950 7. Cuisinart manufactures tea pots. In 2013, fixed overhead was applied to products at a rate of $5 per unit. Variable cost per unit remained constant throughout the year. In July 2013, income under variable costing was $152,000. July's beginning and ending inventories were 10,000 and 6,500 units respectively. Calculate income under absorption costing. A. $152,000 B. $112,500 C. $134,500 D. $212,000 8. Marisa's Furniture manufactures wooden chairs for outdoor use. In May 2013, the company manufactured 15,000 and sold 12,500 chairs. There were no beginning inventories for May and no work in process at the end of May. The cost per unit for the 15,000 chairs produced was as follows: Direct material Direct Labor Variable Overhead Fixed Overhead Total $ 8.00 5.00 2.00 4.00 19.00 What is the value of ending finished goods inventory using absorption costing? A. $37,500 B. $35,000 C. $25,000 D. $47,500 9. Assuming the same information as Question #14, what is the value of ending finished goods inventory using variable costing? A. $37,500 B. $35,000 C. $25,000 D. $47,500 10. Vitamin water makes flavored water and performs the following tasks in the beverage manufacturing process: Hours Receive and transfer ingredients to storage Store ingredients Transfer ingredients from storage to production Mix and cook ingredients Bottle Water Transfer bottles to warehouse 7.0 260.0 5.5 8.5 2.0 3.0 Calculate the total cycle time of this manufacturing process? A. 292.5 hours B. 286 hours C. 272 hours D. 286.5 hours 11. Sheera Company is a design shop that produces jobs to customer specifications. During March, Job #351 was worked on and the following information was available. Direct Material Used Direct Labor Hours worked Machine Time used Direct Labor Rate per Hour Overhead application rate per hour of machine time $2,150 10 8 $4 $15 What was the total cost of Job #351 for March? A. $2,015 B. $2,310 C. $2,300 D. $1,992 12. Havana Company uses a weighted average process costing system and started 32,000 units this month. Winters had 12,000 units that that were 25% complete as to conversion costs in beginning WIP inventory and 5,000 units that were 30% complete as to conversion costs in ending WIP inventory. What are the equivalent units for conversion costs? A. 43,250 B. 45,100 C. 42,900 D. 40,500 13. Marx Company applies Overhead to jobs at a rate of 30% of direct labor cost. Direct Material of $1,150 and direct labor of $1,500 were expended on job #12 during September. On August 31st, the balance of job #12 was $2,500. The balance on September 30th is? A. $4,550 B. $5,600 C. $5,450 D. $6,050 14. The following information is for Patterson Company's July production: Standards: Material Labor Actual: 3 feet per unit @ 4.00 per foot 2.5 hours per unit @ $7.60 per hour Production 2,500 units produced during this month Material 8,100 feet used; 9,000 feet purchased at $4.50 per foot Labor 6,000 direct labor hours @ $7.70 per hour What is the Material Quantity Variance? (round to the nearest dollar) A. $2,400 Favorable B. $2,150 Favorable C. $2,400 Unfavorable D. $2,150 Unfavorable 15. Using the information from Question #14, what is the labor rate variance? (round to the nearest dollar) A. $600 Unfavorable B. $850 Favorable C. $850 Unfavorable D. $600 Favorable 16. Chronologically, the first part of the master budget prepared would be the: A. Sales budget B. Production budget C. Cash budget D. Pro forma financial statements 17. Soho Company is preparing its Manufacturing Overhead budget for the second quarter of the year. Budgeted variable factory overhead is $2 per unit produced; budgeted fixed factory overhead is $54,000 per month, with $18,000 of this amount being factory depreciation. If the budgeted production for May is 4,500 units, then the total budgeted factory overhead per unit is: A. $14 B. $18 C. $12 D. $15 18. Using the information from #19, if the budgeted cash disbursements for factory overhead for June are $70,000, then the budgeted production for June must be: A. 13,040 units B. 16,200 units C. 17,000 units D. 16,500 units 19. Which is the best cost accumulation procedure to use by companies that make relatively small quantities of distinct products or perform unique services that conform to the specifications designated by the purchaser? A. Actual B. Standard C. Job order D. Process 20. Solarte Company uses a job order costing system and the following information is available from its records. The company currently has 3 jobs in process #7, #11, and #13. Raw Material DL per hour Overhead applied based on DL cost $120,000 $8.50 125% Direct material was requisitioned as follows for each job respectively: 25%, 30%, and 30%; the balance of the requisitions was considered indirect. Direct labor hours per job are 2,200, 3,100, and 3,700, respectively. Indirect labor is $55,000. Other actual Overhead costs totaled $50,000. How much overhead was applied to Work in Process? A. B. C. D. $95,625 $99,235 $100,885 $90,665 21. McKenzie Enterprises has the following revenue and cost functions: Revenue = $60 per unit Cost = $80,000 + $35 per unit What is the break-even point in units? A. B. C. D. 3,000 4,100 4,000 3,200 22. Using the information from Question #21, what is the break-even point in units? A. B. C. D. 200,000 195,000 192,000 205,000 23. Jacoby Sports Wear has designed a new athletic suit. The company plans to produce and sell 25,000 units of the new product in the coming year. Annual fixed costs are $700,000, and variable costs are 50% of selling price. If the company wants a pre-tax profit of $200,000, at what minimum price must it sell its product? A. 2,800,000 B. 1,800,000 C. 1,500,000 D. 2,500,000 24. A cost incurred in the past and not relevant to any future courses of action is known as: A. B. C. D. Relevant cost Sunk cost Opportunity cost Incremental cost 25. A potential benefit that is foregone because one course of action is chosen over another is known as: A. B. C. D. Relevant cost Sunk cost Opportunity cost Incremental cost 26. Assume that you are about to graduate from your university and are deciding whether to apply for graduate school or enter the job market. To help make the decision, you gathered the following information: Costs incurred for the bachelor's degree Out of pocket costs for a master's degree Estimated starting salary with B.A. Estimated starting salary with M.A. Estimated time to complete master's degree Estimated time from the present to retirement $163,000 $104,000 $56,500 $66,800 2 years 40 years Room & Board Books and education materials to obtain master's $24,000 $5,500 What is the opportunity cost associated with earning the master's degree? A. 113,000 B. 125,000 C. 188,000 D. 326,000 27. Using the information from Question #26, what is the out of pocket cost to obtain the master's degree? A. 128,000 B. 109,500 C. 133,500 D. 192,500 28. An incidental output of a joint process is also known as: A. Scrap B. Waste C. Split-off D. Garbage 29. The total cost incurred for the material, labor and overhead during a joint process is called: A. Separate costs B. Incremental costs C. Unknown costs D. Joint costs 30. Almond breeze produces milk and sour cream from a joint process. During June, the company produced 240,000 quarts of milk and 190,000 pints of sour cream (there are 2 pints in a quart). Sales value at split-off point was $377,400 for the milk and $177,600 for the sour cream. The milk was assigned $125,800 of the joint cost. Using the sales value at split-off approach, determine the total joint cost for June. A. $180,000 B. $185,000 C. $195,000 D. $205,000 Short Answers: For each question below, please show as much work as possible as the you can receive partial credit for your work and the answers you give. 1. Ralph Lauren makes summer dresses for women. The following information was gathered from the company records for 2013, the first year of company operations. Work in process inventory at the end of 2013 was $15,500. Direct Material purchased on account Direct Material issued to production Direct Labor payroll accrued Indirect labor payroll accrued Prepaid factory insurance expired Factory utilities paid Depreciation on factory equipment recorded Factory rent paid Sales $ 650,000 440,000 305,500 92,000 6,000 21,500 35,500 155,000 1,250,000 The company's gross profit rate for the year was 25 percent of sales. A. Compute the cost of goods sold for 2013? B. What was the total cost of goods manufactured for 2013? C. What is the Finished Goods Inventory at December 31, 2013? D. If Net Income was $105,000, what were total selling and administrative expenses for the year? 2. In July 2013, Zing Corporation purchased 18,000 gallons of Numerol for $55,000 to use in the production of product MR57. During July, Zing Inc. manufactured 3,700 units of product for MR57. The following information is available about standard and actual quantities and costs: (Round to the nearest penny) Make Sure to list if the variance is favorable or unfavorable. Standard for 1 Unit for July Direct Material Gallons Direct Labor $8.02 per DLH A. B. C. D. E. 4.2 Gallons @ $3/gallon 20 minutes @ $8 per DLH Actual Usage 16,550 1,250 DLHs @ Compute the Material price variance Compute the Material quantity variance Compute the Labor Rate Variance Compute the Labor Efficiency Variance Compute the total labor Variance 3. Caputo Automotive sells an auto accessory for $180 per unit. The company's variable cost per unit is $30 for direct material, $25 per unit for direct labor, and $17 per unit for overhead. Annual fixed production overhead is $37,400, and fixed selling and administrative overhead is $25,240. A. B. C. D. E. What is the contribution margin per unit? What is the contribution margin ration? What is the break-even point? Using the contribution margin ration, what is the break-even point in sales dollars? If Caputo Automotive wants to earn an after-tax profit of $135,800, how many units must the company sell
