ACC 349 Week 5 Final Exam. Latest Complete Solution.1
Luca Company overapplied manufacturing overhead during 2006. Which one of the following is part
... [Show More] of
the year end entry to dispose of the overapplied amount assuming the amount is material?
An increase to finished goods
A decrease to applied overhead
An increase to cost of goods sold
A decrease to work in process inventory
2
An activity that has a direct cause-effect relationship with the resources consumed is a(n)
overhead rate
cost driver
product activity
cost pool
3
Max Company uses 10,000 units of Part A in producing its products. A supplier offers to make Part A for
$7. Max Company has relevant costs of $8 a unit to manufacture Part A. If there is excess capacity, the
opportunity cost of buying Part A from the supplier is
$80,000
$10,000
$70,000
$0
4
The difference between a budget and a standard is that
a budget expresses a total amount while a standard expresses a unit amount
standards are excluded from the cost accounting system, whereas budgets are generally
incorporated into the cost accounting system
a budget expresses what costs were, while a standard expresses what costs should be
a budget expresses management's plans, while a standard reflects what actually happened
5
Which of the following is NOT typical of traditional costing systems?
Use of direct labor hours or direct labor cost to assign overhead
Use of multiple cost drivers to allocate overhead
Use of a single predetermined overhead rate
Assumption of correlation between direct labor and incurrence of overhead cost
6
Which of the following would be accounted for using a job order cost system?
The production of town homes
The pasteurization of milk
The production of cans of spinach
The production of textbooks
7
A company developed the following per-unit standards for its product: 2 pounds of direct materials at $6
per pound. Last month, 2,000 pounds of direct materials were purchased for $11,400. The direct
materials price variance for last month was
$11,400 favorable
$300 favorable
$600 unfavorable
$600 favorable
8
Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of
setting up machines, $800,000; machining, $1,800,000; and inspecting, $600,000. Information on the two
products is:
Mini A Maxi B
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Overhead applied to Mini A using traditional costing using direct labor hours is [Show Less]