Question
The assignment I need help with is from a managerial accounting course (undergraduate). It is 15 questions total, with the first 10 being multiple choice
The assignment I need help with is from a managerial accounting course (undergraduate). It is 15 questions total, with the first 10 being multiple choice and the remaining 5 requiring the calculations and all of the work to be shown. Please take a look at the questions and make sure you can answer them 100% correctly and do the calculations before you accept the work, this assignment is very important for my grade and needs to be 100% correct.
Thank you!
I am pasting the questions below and attaching them as an openoffice document as well:
Question 1(5 points)Of the following manufacturing operations, which is best suited to the utilization of a job order system?
Question 1 options:
Helicopter manufacturing. |
Soft drink bottling operation. |
Crude oil refining. |
Plastic molding operation. |
Costs that do not change when the activity base fluctuates are known as:
Question 2 options:
Variable costs |
Discretionary costs |
Fixed costs |
Mixed costs |
The basic difference between a static budget and a flexible budget is that:
Question 3 options:
A flexible budget considers only variable costs, but a static budget considers all costs. |
Flexible budgets allow management latitude in meeting goals, whereas a static budget is based on a fixed standard. |
A static budget is for an entire production facility, but a flexible budget is applicable only to a single department. |
A static budget is based on one specific level of production and a flexible budget can be prepared for any production level within a relevant range. |
Question 4(5 points)
Blackhat Chimney Builders constructed 80 units during 19X1. The total sales value for these 80 units was $460,000. Variable costs associated with each unit was $4,000 and the company's fixed costs for 19X1 amounted to $50,000. How much was the per-unit contribution margin?
Question 4 options:
$750 |
$1,125 |
$1,750 |
$5,125 |
If a unit manager made a decision to purchase raw materials that were of superior quality and cost $1 more than was anticipated, and this decision resulted in less spoilage than normal, the effect on the quantity and price variances, respectively, would be:
Question 5 options:
Unfavorable, unfavorable |
Favorable, unfavorable |
Favorable, favorable |
Unfavorable, favorable |
Which of the following factors would cause the break-even point to change?
Question 6 options:
Increased sales volume. |
Fixed costs increased due to addition of physical plant. |
Total variable costs increased as a function of higher production. |
Total production decreased. |
Which cost accumulation procedure is best suited to the continuous mass production of similar units?
Question 7 options:
Job order |
Process |
Standard |
Actual |
An equivalent unit of material is equal to:
Question 8 options:
The amount of material necessary to complete one unit of production. |
The amount of material necessary to start a unit of production into work in process. |
Half of the material necessary to complete one unit of finished goods. |
An equivalent unit of conversion cost. |
Beginning work in process was 1,200 units, 2,800 additional units were put into production, and ending work in process was 500 units. How many units were completed?
Question 9 options:
500 |
3,000 |
3,300 |
3,500 |
There are a number of benefits associated with budgeting. Which of the following is not frequently cited as a benefit of the budget process?
Question 10 options:
Budgets can help identify production bottlenecks. |
Budgets are useful tools in performance evaluation. |
Budgets help provide an early warning for periods during which cash may be in short supply. |
Budgets eliminate the opportunity for slack or padding within an organization. |
Deep Channel Ferry Company is evaluating whether to purchase a more fuel-efficient boat or continue to use the boat they currently own. Both boats are identical except for the engine. The fuel-efficient boat costs $620,000, has an estimated service life of five years, has no salvage value, and will have variable operating costs of $100,000 per year. The boat currently owned had an original cost of $320,000, has an existing book value of $160,000, has an estimated remaining service life of five years, has no salvage value at the end of its service life, has a current disposal value (now) of $120,000, and has variable operating costs of $200,000 per year. Ignoring present value and tax considerations, what should Deep Channel do - Buy the fuel-efficient boat, keep the existing boat, or be indifferent between the fuel-efficient boat and the existing boat. Be sure to include your rationale and numerical calculations in your response.
Question 11:
Question 12(10 points)
The Environmental Filter Company is planning to sell air filter systems for $2,500 per unit. Variable costs are $1,500 per unit and total fixed costs are $1,000,000. What is the dollar value of sales necessary to break even?
Question 13(10 points)
Moore Company reported sales of $150,000 (20,000 units). Fixed costs amounted to $20,000 and income for the period was $90,000. Determine the per-unit variable cost.
Question 14(10 points)
Pure Comfort manufactures and sells mattresses with adjustable air chambers. Pure Comfort has been producing and selling approximately 500,000 units per year. Each units sells for $600, and there are no variable selling, general, or administrative costs. The company has been approached by a foreign supplier who wishes to provide the air compressor component for $90 per unit. Total annual manufacturing costs, including air compressors, is as follows:
Direct materials | $ 50,000,000 |
Direct labor | 80,000,000 |
Variable factory overhead | 16,000,000 |
Fixed factory overhead | 35,000,000 |
If Pure Comfort outsources the air compressor, it is expected that direct materials will be reduced by 20%, direct labor by 30%, and variable factory overhead by 25%. There will be no reduction in fixed factory overhead.
Should Pure Comfort outsource the air compressor?
Question 15(10 points)
Sunshine Company had, at the beginning of 20X1, a work in process of 10,000 units. During 20X1, 57,500 additional units were started into production. Ending work in process on December 31, 20X1, was 7,500 units. The beginning work in process was 100% complete as to direct materials and 75% complete as to conversion costs. The ending work in process was 100% complete as to direct materials and 50% complete as to conversion costs. Total direct material put into process cost $57,500. Total conversion cost put into process cost $84,375. Beginning work in process cost $21,250; $10,000 for materials and $11,250 for conversion. All materials are added at the start of the production process, and conversion costs are incurred uniformly throughout manufacturing. Sunshine Company uses a weighted-average process cost system.
What was the costper equivalent unit (rounded to the nearest cent) for conversion cost in20X1?
Question 1 (5 points) Of the following manufacturing operations, which is best suited to the utilization of a job order system? Question 1 options: Helicopter manufacturing. Soft drink bottling operation. Crude oil refining. Plastic molding operation. Question 2 (5 points) Costs that do not change when the activity base fluctuates are known as: Question 2 options: Variable costs Discretionary costs Fixed costs Mixed costs Question 3 (5 points) The basic difference between a static budget and a flexible budget is that: Question 3 options: A flexible budget considers only variable costs, but a static budget considers all costs. Flexible budgets allow management latitude in meeting goals, whereas a static budget is based on a fixed standard. A static budget is for an entire production facility, but a flexible budget is applicable only to a single department. A static budget is based on one specific level of production and a flexible budget can be prepared for any production level within a relevant range. Question 4 (5 points) Blackhat Chimney Builders constructed 80 units during 19X1. The total sales value for these 80 units was $460,000. Variable costs associated with each unit was $4,000 and the company's fixed costs for 19X1 amounted to $50,000. How much was the per-unit contribution margin? Question 4 options: $750 $1,125 $1,750 $5,125 Question 5 (5 points) If a unit manager made a decision to purchase raw materials that were of superior quality and cost $1 more than was anticipated, and this decision resulted in less spoilage than normal, the effect on the quantity and price variances, respectively, would be: Question 5 options: Unfavorable, unfavorable Favorable, unfavorable Favorable, favorable Unfavorable, favorable Question 6 (5 points) Which of the following factors would cause the break-even point to change? Question 6 options: Increased sales volume. Fixed costs increased due to addition of physical plant. Total variable costs increased as a function of higher production. Total production decreased. Question 7 (5 points) Which cost accumulation procedure is best suited to the continuous mass production of similar units? Question 7 options: Job order Process Standard Actual Question 8 (5 points) An equivalent unit of material is equal to: Question 8 options: The amount of material necessary to complete one unit of production. The amount of material necessary to start a unit of production into work in process. Half of the material necessary to complete one unit of finished goods. An equivalent unit of conversion cost. Question 9 (5 points) Beginning work in process was 1,200 units, 2,800 additional units were put into production, and ending work in process was 500 units. How many units were completed? Question 9 options: 500 3,000 3,300 3,500 Question 10 (5 points) There are a number of benefits associated with budgeting. Which of the following is not frequently cited as a benefit of the budget process? Question 10 options: Budgets can help identify production bottlenecks. Budgets are useful tools in performance evaluation. Budgets help provide an early warning for periods during which cash may be in short supply. Budgets eliminate the opportunity for slack or padding within an organization. Question 11 (10 points) Deep Channel Ferry Company is evaluating whether to purchase a more fuel-efficient boat or continue to use the boat they currently own. Both boats are identical except for the engine. The fuel-efficient boat costs $620,000, has an estimated service life of five years, has no salvage value, and will have variable operating costs of $100,000 per year. The boat currently owned had an original cost of $320,000, has an existing book value of $160,000, has an estimated remaining service life of five years, has no salvage value at the end of its service life, has a current disposal value (now) of $120,000, and has variable operating costs of $200,000 per year. Ignoring present value and tax considerations, what should Deep Channel do - Buy the fuel-efficient boat, keep the existing boat, or be indifferent between the fuel-efficient boat and the existing boat. Be sure to include your rationale and numerical calculations in your response. Question 11: Question 12 (10 points) The Environmental Filter Company is planning to sell air filter systems for $2,500 per unit. Variable costs are $1,500 per unit and total fixed costs are $1,000,000. What is the dollar value of sales necessary to break even? Question 13 (10 points) Moore Company reported sales of $150,000 (20,000 units). Fixed costs amounted to $20,000 and income for the period was $90,000. Determine the per-unit variable cost. Question 14 (10 points) Pure Comfort manufactures and sells mattresses with adjustable air chambers. Pure Comfort has been producing and selling approximately 500,000 units per year. Each units sells for $600, and there are no variable selling, general, or administrative costs. The company has been approached by a foreign supplier who wishes to provide the air compressor component for $90 per unit. Total annual manufacturing costs, including air compressors, is as follows: Direct materials $ 50,000,000 Direct labor 80,000,000 Variable factory overhead 16,000,000 Fixed factory overhead 35,000,000 If Pure Comfort outsources the air compressor, it is expected that direct materials will be reduced by 20%, direct labor by 30%, and variable factory overhead by 25%. There will be no reduction in fixed factory overhead. Should Pure Comfort outsource the air compressor? Question 15 (10 points) Sunshine Company had, at the beginning of 20X1, a work in process of 10,000 units. During 20X1, 57,500 additional units were started into production. Ending work in process on December 31, 20X1, was 7,500 units. The beginning work in process was 100% complete as to direct materials and 75% complete as to conversion costs. The ending work in process was 100% complete as to direct materials and 50% complete as to conversion costs. Total direct material put into process cost $57,500. Total conversion cost put into process cost $84,375. Beginning work in process cost $21,250; $10,000 for materials and $11,250 for conversion. All materials are added at the start of the production process, and conversion costs are incurred uniformly throughout manufacturing. Sunshine Company uses a weighted-average process cost system. What was the cost per equivalent unit (rounded to the nearest cent) for conversion cost in 20X1Step by Step Solution
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