Student name and surname: Student number: BUS 503 Advanced Accounting The following costs are related to questions 1-4: A company's actual and standard costs of production are as follows: Take-Home Exam -2 Direct Materials Direct Labor Standard Costs (TL) 30,000 20,000 Actual Costs (TL) 31,000 18,000 a) TL 65,000 General Production Expenses 15,000 1. What is the total standard cost? 2. What is the total actual cost? 14,000 b) TL 64,000 c) TL 63,000 d) TL 62,000 e) TL 61,000 a) TL 65,000 b) TL 64,000 c) TL 63,000 d) TL 62,000 e) TL 61,000 3. What is the variance between the actual and a) TL 1,000 b) TL 2,000 c) TL 3,000 b) TL 2,000 c) TL 3,000 the standard costs for direct materials? d) TL 4,000 e) TL 5,000 costs for direct labor? e) TL 5,000 4. What is the variance between the actual and the standard a) TL 1,000 d) TL 4,000 The following case is related to questions 5 - 8: A bakery manufactures two types of bread, whole-wheat and plain. The flour related to each type of bread is bought from different suppliers. Both types of bread use the same type of yeast. Raw materials are bought when needed by the production. Cleaning is done once every day regardless of the production volume. Indicate whether each expense is direct or indirect, fixed or variable assuming "units of production of each kind of bread" is the cost object. 5. Which of the following is the cost classification for the whole-wheat flour? a) direct, variable b) direct, fixed c) indirect, variable d) indirect, fixed e) direct, indirect 6. Which of the following is the cost classification for the yeast? a) direct, variable b) direct, fixed c) indirect, variable d) indirect, fixed e) direct, indirect 7. Which of the following is the cost classification for the depreciation of the ovens which are used to cook both types of bread? a) direct, variable b) direct, fixed c) indirect, variable d) indirect, fixed e) direct, indirect 8. Which of the following is the cost classification for the cleaning cost of the factory? a) direct, variable b) direct, fixed c) indirect, variable d) indirect, fixed e) direct, indirect Indicate whether the statements 9 - 14 are true or false: 9. The cost of the good which is sold is equal to its inventory value. a) true b) false 10. Trade Goods is related to goods which are purchased for resale without making any modifications or additions. a) true b) false 11. Cost of goods sold is recognized when the product is manufactured. a) true b) false 12. Direct Labor is a cost component. a) true b) false 13. Direct costs are calculated by using an appropriate allocation method. a) true b) false 14. The variable total cost changes with respect to the volume of production.