ACCT 346 Week 4 Midterm - 3

ACCT 346 Week 4 Midterm - 3

Author: Minh Reed


1. (TCO 1) Managerial accounting stresses accounting concepts and procedures that are relevant to preparing reports for (Points : 4)
2. (TCO 1) Which of the following costs does not change when the level of business activity changes? (Points : 4)
3. (TCO 1) A retailer purchased some trendy clothes that have gone out of style and must be marked down to 40% of the original selling price in order to be sold. Which of the following is a sunk cost in this situation? (Points : 4)
4. (TCO 1) Shula’s 347 Grill has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,700; depreciation, $800; and other fixed costs, $600. Each steak dinner sells for $14.00 each. Which is the budgeted fixed cost per unit? (Points : 4)
5. (TCO 1) Which of the following costs is not part of manufacturing overhead? (Points : 4)
6. (TCO 1) Product costs (Points : 4)
7. (TCO 1) If the balance in the Finished Goods Inventory account increased by $30,000 during the period and the cost of goods manufactured was $220,000, how much is cost of goods sold? (Points : 4)
8. (TCO 2) BCS Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for August follows.
9. (TCO 2) During 2011, Magus Company applied overhead using a job-order costing system at a rate of $12 per direct labor hours. Estimated direct labor hours for the year were 150,000, and estimated overhead for the year was $1,800,000. Actual direct labor hours for 2011 were 140,000, and actual overhead was $1,700,000.
What is the amount of under- or overapplied overhead for the year? (Points : 4)
10. (TCO 3) Which of the following describes the differences between job-order and process costing? (Points : 4)
11. (TCO 3) Caliente Company uses process costing. At the beginning of the month, there were 3,000 units in process, 70% complete with respect to material and 60% complete with respect to conversion costs. 20,000 units were started during the month and 20,000 units were completed. The units in ending Work In Process Inventory were 90% complete with respect to material and 30% complete with respect to conversion costs. How many equivalent units will be used in calculating the cost per unit for materials? (Points : 4)
12. (TCO 3) Ranger Glass Company manufactures glass for French doors. At the start of May, 2,000 units were in process. During May, 11,000 units were completed and 3,000 units were in process at the end of May. These in-process units were 90% complete with respect to material and 50% complete with respect to conversion costs. Other information is as follows.

Work in process, May 1:
Direct material $36,000
Conversion costs $45,000

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