1. Tatman Corporation uses an activity-based costing system with the following three activity cost pools:
The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs:
The distribution of resource consumption across activity cost pools is given below:
The activity rate for the Fabrication activity cost pool is closest to: (Points : 2)
|
$3.30 per machine-hour $13.20 per machine-hour $10.30 per machine-hour $8.80 per machine-hour
|
Question 2. 2. Mayeux 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:
Distribution of resource consumption:
How much cost, in total, would be allocated in the first-stage allocation to the Setting Up activity cost pool? (Points : 2)
|
$360,000 $336,000 $288,000 $348,000
|
Question 3. 3. Feldpausch Corporation has provided the following data from its activity-based costing system:
The company makes 470 units of product W26B a year, requiring a total of 660 machine-hours, 50 orders, and 40 inspection-hours per year. The product’s direct materials cost is $40.30 per unit and its direct labor cost is $42.22 per unit. The product sells for $118.00 per unit. According to the activity-based costing system, the product margin for product W26B is: (Points : 2)
|
$6,444.70 per unit $4,679.20 per unit $3,384.70 per unit $16,675.60 per unit
|
Question 4. 4. On October 1, The Gala Manufacturing Company has 300 units of Product XYZ on hand. The company plans to sell 1,200 units of Product XYZ during October, and plans to have 500 units on hand October 31. How many units of Product XYZ must be produced during October? (Points : 2)
|
1,400 1,500 1,000 2,000
|
Question 5. 5. Pitkins Company collects 20% of a month’s sales in the month of sale, 70% in the month following sale, and 6% in the second month following sale. The remainder is uncollectible. Budgeted sales for the next four months are:
Cash collections in April are budgeted to be: (Points : 2)
|
$321,000 $313,000 $320,000 $292,000
|
Question 6. 6. Betz Company’s sales budget shows the following projections for next year:
Inventory at the beginning of the year was 18,000 units. The finished goods inventory at the end of each quarter is to equal 30% of the next quarter’s budgeted unit sales. How many units should be produced during the first quarter? (Points : 2)
|
24,000 48,000 66,000 72,000
|
Question 7. 7. Pooler Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.15 direct labor-hours. The direct labor rate is $7.00 per direct labor-hour. The production budget calls for producing 6,500 units in April and 6,200 units in May. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 1,000 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months? (Points : 2)
|
$13,825.00 $13,335.00 $14,000.00 $13,510.00
|
Question 8. 8. Francis Manufacturing Company is currently preparing its cash budget for next month and has gathered the following information:
The beginning cash balance will be $6,000 and the company requires a minimum cash balance at the end of the month of $5,000. How much will Francis Manufacturing need to borrow to meet its cash needs for the month? (Points : 2)
|
$9,100 $14,100 $20,100 None of these.
|
Question 9. 9. The following information relates to Minorca Manufacturing Corporation for next quarter:
How many units should Minorca plan on producing for the month of February? (Points : 2)
|
360,000 units 388,000 units 392,000 units 420,000 units
|
Question 10. 10. The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 4,400 direct labor-hours will be required in January. The variable overhead rate is $1.30 per direct labor-hour. The company’s budgeted fixed manufacturing overhead is $60,280 per month, which includes depreciation of $17,160. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: (Points : 2)
|
$5,720 $43,120 $48,840 $66,000
|
Question 11. 11. Schuepfer Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 1,300 units are planned to be sold in March. The variable selling and administrative expense is $4.20 per unit. The budgeted fixed selling and administrative expense is $19,240 per month, which includes depreciation of $3,380 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be: (Points : 2)
|
$15,860 $5,460 $24,700 $21,320
|
Question 12. 12. Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:
Data concerning two products appear below:
How much overhead cost would be assigned to Product K91B using the activity-based costing system? (Points : 2)
|
$9,097.41 $81,146.53 $4,961.04 $135.47
|
|