Student name and surname: Student number: BUS 503 Advanced Accounting a) true b) false Take-Home Exam -2 The following costs are related to questions 15 - 18: A factory produces two products, A and B. The following costs are related to these products. The following costs are related to questions 1-4: A company's actual and standard costs of production are as follows: Actual Costs (TL) Direct Materials Direct Labor General Production Expenses Standard Costs (TL) 30,000 31,000 20,000 18,000 15,000 14,000 b) TL 64,000 c) TL 63,000 d) TL 62,000 e) TL 61,000 b) TL 64,000 c) TL 63,000 d) TL 62,000 e) TL 61,000 1. What is the total standard cost? a) TL 65,000 2. What is the total actual cost? a) TL 65,000 3. What is the variance between the actual and the standard costs for direct materials? a) TL 1,000 b) TL 2,000 c) TL 3,000 d) TL 4,000 e) TL 5,000 4. What is the variance between the actual and the standard costs for direct labor? a) TL 1,000 b) TL 2,000 c) TL 3,000 The following case is related to questions 5 - 8: d) TL 4,000 e) TL 5,000 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 a) direct, variable b) direct, fixed classification for the yeast? 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? Direct material Direct labor Indirect manufacturing costs 15. What is the total cost of Product A? a) TL 40 Product A TL 30 TL 20 Product B TL 15 TL 10 TL 10 TL 25 b) TL 50 c) TL 60 d) TL 70 e) TL 80 16. What is the total cost of Product B? a) TL 40 b) TL 50 c) TL 60 d) TL 70 e) TL 80 b) TL 5 c) TL 6 17. If 10 units of Product A are produced, what is the unit cost of Product A? a) TL 4 d) TL 7 e) TL 8 18. If 5 units of Product B are produced, what is the unit cost of Product B? e) TL 10 a) TL 4 b) TL 5 19. What is a budget? c) TL 6 a) a plan for the future income and expenditures d) TL 8 b) a plan for the past income and expenditures c) a plan for the future assets d) a plan for the past liabilities e) a plan for the future salaries 20. The budget of a company helps to control the following costs: d) wages e) all of the mentioned costs a) maintenance costs b) advertising costs c) material costs Indicate whether the statements 21 - 23 are true or false: 21. The values of a budget are estimations which are the outcomes of statistical analysis and logical conclusions on historic data and events. 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. Student name and surname: Student number: BUS 503 Advanced Accounting Question Numbers Answers 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Take-Home Exam -2 a) true b) false a) true b) false 22. Unattainable budgetary standards should be encouraged. 23. Departmental budgets need a high level of coordination among the employees of the same and of other departments. a) true b) false The following case is related to questions 24-25: Projected sales units of XYZ Corporation are as follows: Product C I. Three Months II. Three Months III. Three Months IV. Three Months 15 10 Target sales price for Product C: 5 TL/unit 5 20 24. What is the projected total amount of units which will be sold in the year? a) 5 units b) 10 units c) 20 units d) 50 units 25. What is the projected total sales income of the year? a) TL 50 b) TL 100 c) TL 150 e) 80 units d) TL 200 e) TL 250