Assignment
1.
The following costs were incurred in September:
|
Direct materials
|
$46,600
|
|
Direct labor
|
$29,900
|
|
Manufacturing overhead
|
$24,700
|
|
Selling expenses
|
$20,100
|
|
Administrative expenses
|
$40,800
|
Conversion costs during the month totaled:
$54,600
$76,500
$71,300
$162,100
2.
A soft drink bottler incurred the following factory utility cost: $3,636 for 650 cases bottled and $3,724 for 900 cases bottled. Factory utility cost is a mixed cost containing both fixed and variable components. The variable factory utility cost per case bottled is closest to:
$5.59
$0.35
$4.14
$4.04
3.
The following cost data pertain to the operations of Swestka Department Stores, Inc., for the month of July.
|
Corporate headquarters building lease
|
$85,400
|
|
Cosmetics Department sales commissions--Northridge Store
|
$5,000
|
|
Corporate legal office salaries
|
$65,000
|
|
Store manager's salary-Northridge Store
|
$19,600
|
|
Heating-Northridge Store
|
$11,500
|
|
Cosmetics Department cost of sales--Northridge Store
|
$32,700
|
|
Central warehouse lease cost
|
$8,200
|
|
Store security-Northridge Store
|
$17,600
|
|
Cosmetics Department manager's salary--Northridge Store
|
$4,680
|
The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores.
What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?
$84,360
$42,380
$32,700
$37,700
4.
Erkkila Inc. reports that at an activity level of 6,500 machine-hours in a month, its total variable inspection cost is $426,080 and its total fixed inspection cost is $183,872.
What would be the average fixed inspection cost per unit at an activity level of 6,800 machine-hours in a month? Assume that this level of activity is within the relevant range.
$27.04
$93.84
$28.29
$37.26
5.
Nikkel Corporation, a merchandising company, reported the following results for July:
|
Sales
|
$418,000
|
|
Cost of goods sold (all variable)
|
$175,500
|
|
Total variable selling expense
|
$23,700
|
|
Total fixed selling expense
|
$21,800
|
|
Total variable administrative expense
|
$16,200
|
|
Total fixed administrative expense
|
$34,300
|
The contribution margin for July is:
$146,500
$361,900
$242,500
$202,600
6.
Job 593 was recently completed. The following data have been recorded on its job cost sheet:
|
Direct materials
|
$2,454
|
|
|
Direct labor-hours
|
71
|
labor-hours
|
|
Direct labor wage rate
|
$ 15
|
per labor-hour
|
|
Machine-hours
|
137
|
machine-hours
|
The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $16 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 593 would be:
$3,035
$5,711
$6,551
$3,519
7.
The Assembly Department started the month with 18,500 units in its beginning work in process inventory. An additional 286,500 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 37,250 units in the ending work in process inventory of the Assembly Department.
How many units were transferred to the next processing department during the month?
342,250
305,250
267,750
305,000
8.
Lasseter Corporation has provided its contribution format income statement for August. The company produces and sells a single product.
|
Sales (4,400 units)
|
162,800
|
|
Variable expenses
|
79,200
|
|
Contribution margin
|
83,600
|
|
Fixed expenses
|
44,800
|
|
Net operating income
|
38,800
|
If the company sells 4,500 units, its total contribution margin should be closest to:
$39,682
$83,600
$85,500
$87,300
9.
Olds Inc., which produces a single product, has provided the following data for its most recent month of operations:
|
Number of units produced
|
6,400
|
|
Variable costs per unit:
|
|
|
Direct materials
|
$60
|
|
Direct labor
|
$54
|
|
Variable manufacturing overhead
|
$4
|
|
Variable selling and administrative expense
|
$17
|
|
Fixed costs:
|
|
|
Fixed manufacturing overhead
|
$236,800
|
|
Fixed selling and administrative expense
|
$492,800
|
There were no beginning or ending inventories. The absorption costing unit product cost was:
$114 per unit
$155 per unit
$118 per unit
$249 per unit
10.
Zurasky Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below:
|
|
Alternative A
|
Alternative B
|
|
Materials costs
|
$31,000
|
$70,000
|
|
Processing costs
|
$37,000
|
$37,000
|
|
Equipment rental
|
$11,600
|
$28,800
|
|
Occupancy costs
|
$19,800
|
$28,200
|
What is the differential cost of Alternative B over Alternative A, including all of the relevant costs?
$64,600
$164,000
$99,400
$100,800
11.
Bossie Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system:
|
Costs:
|
|
|
Wages and salaries
|
$331,000
|
|
Depreciation
|
275,000
|
|
Utilities
|
227,000
|
|
Total
|
$833,000
|
Distribution of resource consumption:
|
|
Activity Cost Pools
|
|
|
|
Assembly
|
Setting up
|
Other
|
Total
|
|
Wages and salaries
|
50%
|
25%
|
25%
|
100%
|
|
Depreciation
|
40%
|
10%
|
50%
|
100%
|
|
Utilities
|
25%
|
55%
|
20%
|
100%
|
How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool?
$319,583
$332,250
$208,000
$416,500
12.
Budgets are used to plan and to control operations.
True
False
13.
Cadavieco Detailing's cost formula for its materials and supplies is $1,920 per month plus $11 per vehicle. For the month of November, the company planned for activity of 87 vehicles, but the actual level of activity was 52 vehicles. The actual materials and supplies for the month was $2,130.
The materials and supplies in the planning budget for November would be closest to:
$2,877
$2,130
$2,492
$4,468
14.
Aide Industries is a division of a major corporation. Data concerning the most recent year appears below:
|
Sales
|
$17,830,000
|
|
Net operating income
|
$838,010
|
|
Average operating assets
|
$4,570,000
|
The division's return on investment (ROI) is closest to: (Round your answer to 2 decimal places.)
4.70%
18.34%
14.49%
1.70%
15.
Blue Corporation's standards call for 4,900 direct labor-hours to produce 1,400 units of product. During May 1,300 units were produced and the company worked 1,300 direct labor-hours. The standard hours allowed for May production would be:
4,900 hours
1,300 hours
4,550 hours
3,600 hours
16.
The following standards for variable manufacturing overhead have been established for a company that makes only one product:
|
Standard hours per unit of output
|
6.2
|
hours
|
|
Standard variable overhead rate
|
$12.60
|
per hour
|
The following data pertain to operations for the last month:
|
Actual hours
|
2,625
|
hours
|
|
Actual total variable manufacturing overhead cost
|
$33,715
|
|
|
Actual output
|
200
|
units
|
What is the variable overhead efficiency variance for the month?
$18,091 U
$17,451 U
$640 F
$15,624 F
17.
Wyly Inc. produces and sells a single product. The selling price of the product is $205.00 per unit and its variable cost is $67.65 per unit. The fixed expense is $391,347 per month.
The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)
$1,185,900
$794,553
$584,100
$391,347
18.
Part O43 is used in one of Scheetz Corporation's products. The company's Accounting Department reports the following costs of producing the 16,500 units of the part that are needed every year.
|
Direct materials
|
$3.70
|
|
Direct labor
|
$4.40
|
|
Variable overhead
|
$7.40
|
|
Supervisor's salary
|
$8.10
|
|
Depreciation of special equipment
|
$8.70
|
|
Allocated general overhead
|
$5.70
|
An outside supplier has offered to make the part and sell it to the company for $30.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $22,500 of these allocated general overhead costs would be avoided.
Required:
a. Prepare a report that shows the effect on the company's total net operating income of buying part O43 from the supplier rather than continuing to make it inside the company. (Input the amount as a positive value. Omit the "tiny_mce_markerquot; sign in your response.)
Net operating income would be
by $ .
b. Which alternative should the company choose?
Buy
Make
19.
Activity rates from Quattrone Corporation's activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products:
|
Activity Cost Pools
|
Activity Rate
|
|
Processing customer orders
|
$100.73
|
per customer order
|
|
Assembling products
|
$3.42
|
per assembly hour
|
|
Setting up batches
|
$53.47
|
per batch
|
Last year, Product F76D involved 3 customer orders, 452 assembly hours, and 24 batches. How much overhead cost would be assigned to Product F76D using the activity-based costing system?
$3,131.31
$1,283.28
$68,040.15
$1,278.00
20.
The Gasson Company uses the weighted-average method in its process costing system. The company's ending work in process inventory consists of 16,000 units, The ending work in process inventory is 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the costs per equivalent unit for the period $4.50 for the materials and $1.70 for labor and overhead, whatis the balance of the ending work in process inventory account would be: (Do not round Cost per equivalent unit)
$91,040
$71,500
$82,540
$99,200.