Variable manufacturing overhead is applied to products on the basis of standard direct labor-hours. If the direct labor efficiency variance is unfavorable, the variable overhead efficiency variance will be:? A) favorable.?B) unfavorable.?C) either favorable or unfavorable.?D) zero.

Acctg 202 14e Exam 4 comprehensive review Each question is equally weighted. There are 100 points possible. Put your name on your test paper and on your half page size Scantron sheet. Turn in both your exam paper and your Scantron sheet. Mark your answers on the Scantron sheet and on the exam paper. Only the Scantron answers will be graded unless it becomes unavailable. Time allowed: 1 Hour 50 Minutes. Unless you obtain specific permission from the examiner, only non-programmable non-cell phone calculators, pencils, erasers, and both sides of one 8.5 by 11 inch page of notes are permitted. You may write on the test paper. On my honor as a Pittsburg State University student, I affirm that I have neither given nor received unauthorized assistance on this work. Name (Print neatly.) _______________________________ Date _________________________ 1. Which of the following would be considered a product cost for external financial reporting purposes? 2. The salary of a .................of a manufacturing company would be classified as which of the following? (Fixed, variable, product, period, etc. ) 3. Which of the following statements regarding fixed costs is incorrect? 4. Which of the following types of costs is often important in decision making, but is omitted from conventional accounting records? 5. In September direct labor was 60% of conversion cost. If the manufacturing overhead for the month was $66,000 and the direct materials cost was $50,000, the direct labor cost was: (Not actual numbers) 6. When a job has been completed, the goods are transferred from the production department to the finished goods warehouse and the journal entry would include a credit to ............... True False Acctg 202 exam 4, 14e, Page 1 7. Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves? 8. The journal entry to record the incurrence of .... labor costs is: 9. The balance in the Work in Process account equals: 10. Martinez Aerospace Company uses a job-order costing system. The direct materials for Job #045391 were purchased in July and put into production in August. The job was not completed by the end of August. At the end of August, in what account would the direct material cost assigned to Job #045391 be located? 11. The break-even point in unit sales is found by ..............: 12. A company with a degree of operating leverage of 5 would expect net operating income to increase by 200% if sales increased from $100,000 to $200,000. True False (Not actual numbers) 13. The following information relates to Clyde Corporation which produced and sold 50,000 units last month. ( data not shown here , but includes information about sales, manufacturing costs and selling and administrative costs.) There were no beginning or ending inventories. Production and sales next month are expected to be 40,000 units. The company's unit contribution margin next month should be: 14. Sensabaugh Inc., a company that produces and sells a single product, has provided its contribution format income statement for January. ( data not shown here) If the company sells 1,600 units, its total contribution margin should be closest to: 15. South Company sells a single product for $10 per unit. If variable expenses are 40% of sales and fixed expenses total $9,600, the break-even point will be: Acctg 202 exam 4, 14e, Page 2 (not actual numbers) 16. ..................... activities are activities of the general organization that support specific products. True False 17. Even departmental overhead rates will not correctly assign overhead costs in situations where a company has a range of products that ............................... True False 18. The production budget is typically prepared prior to the .......... budget. True False 19. .... forecasts are drawn up after the cash budget has been completed because only then are the funds available for marketing known. True False 20. A sales budget is a detailed schedule showing the expected sales for the budget period; typically, it is .... ........ True False Salge Inc. bases its manufacturing overhead budget on budgeted direct labor- hours. The variable overhead rate is $5.10 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $74,730 per month, which includes depreciation of $20,670. All other fixed manufacturing overhead costs represent current cash flows. The direct labor budget indicates that 6,000 direct labor-hours will be required in September. (not actual numbers) 21. The September cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: 22. A flexible budget can be used to determine ............... True False 23. If activity is higher than expected, total variable costs should be ........ than expected. If activity is lower than expected, total variable costs should be ......... than expected. True False 24. Kara Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $210 per month plus $64 per job plus $27 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in July to be 18 jobs and 127 meals, but the actual activity was 14 jobs and 120 meals. The actual cost for catering supplies in July was $3,620. The activity variance for catering supplies in July would be closest to: (not actual numbers) 25. If the labor efficiency variance is unfavorable, then .... 26. Variable manufacturing overhead is applied to products on the basis of standard direct laborhours. If the direct labor efficiency variance is unfavorable, the variable overhead ............ Acctg 202 exam 4, 14e, Page 3 variance will be: The Litton Company has established standards as follows: Direct material: 3 pounds per unit @ $5 per pound Direct labor: 2 hours per unit @ $10 per hour Variable manufacturing overhead: 2 hours per unit @ $5 per hour = $10 per unit Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased. (Data not shown here, but includes information on units produced, direct material used and purchased, direct labor cost, and variable manufacturing costs) The company applies variable manufacturing overhead to products on the basis of standard direct labor-hours. 27. The labor efficiency variance is: 28. Residual income equals ....................... True False 29. A balanced scorecard should contain ............................... True False 30. If expenses exceed revenues in a department, then it would be considered a ............ center. True False Acctg 202 exam 4, 14e, Page 4