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Study Resources (Accounting)

128) Using account analysis, what type of cost is the monthly cost of a storage locker used for holding old records? A) Fixed B) Mixed C) Variable D) Step 129) Using account analysis, what type of cost is a community activity pass that costs $80 plus $15.00 per event? A) Fixed B) Step C) Mixed D) Variable 130) Manufacturing overhead.
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248) Net income reported under absorption costing will exceed net income reported under variable costing for a given period if A) production equals sales for that period. B) sales exceed production for that period. C) production exceeds sales for that period. D) variable overhead exceeds fixed overhead for that period. 249) The income statement is.
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238) The contribution margin is equal to A) sales minus cost of goods sold. B) sales minus operating expenses. C) sales minus fixed expenses. D) sales minus variable expenses. 239) The contribution margin income statement presents ________ above the contribution margin line. A) only variable expenses relating to selling and administrative activities B) only fixed expenses.
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268) Jean's Fitness Club provides monthly memberships as well as personal training sessions. The personal trainers earn 50% of the revenue for all personal training sessions. The Fitness Club also sells nutrition products. Jean's general ledger accounts indicate the following for the year. The front desk staff wages expense remains.
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106) Answer the following questions: a.What is a cost equation? b.If a company has fixed costs of $1,000 and variable costs of $4 per unit, what is their cost equation? c.What would a company use a cost equation for? 107) The controller for Andy's Bicycles has gathered the following cost and activity level information: Average.
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31) For most businesses, annual straight line depreciation expense on the company's building is what type of cost? A) Variable B) Mixed C) Fixed D) Step 32) Total fixed costs for Taylor Incorporated are $240,000. Total costs, including both fixed and variable, are $500,000 if 125,000 units are produced. The variable cost per unit is A).
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206) Paula Corporation is trying to predict its manufacturing overhead costs for the upcoming year; they are debating the use of the high-low method versus the use of regression analysis. They have gathered information about their manufacturing overhead costs in each of the past six months. A table containing their.
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228) If inventory has grown, operating income will be higher under absorption costing than it is under variable costing. 229) If inventory has declined, operating income will be higher under absorption costing than it is under variable costing. 230) If inventory has not increased or decreased, but has stayed the.
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204) What are three methods used to estimate cost behavior? What are the advantages and disadvantages of each method? 205) Scranton Printer Company would like to estimate its total manufacturing costs using regression analysis but is unsure whether machine hours or units produced would be a better predictor of total manufacturing.
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150) Tasty Treats is a snow cone stand near the local park. To plan for the future, Tasty Treats wants to determine its cost behavior patterns. It has the following information available about its operating costs and the number of snow cones served. Month Number of snow cones Total operating costs January 6,400 $5,980 February 7,000 $6,400 March 6,200 $5,840 April 6,900 $6,330 May 7,600 $6,820 June 7,250 $6,575 The variable cost.
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108) The high-low method is theoretically better than regression analysis because the high-low method uses more data points than regression analysis. 109) When performing account analysis, managers decide how to classify each account as a variable, fixed or mixed cost. 110) Rent on a factory building would likely be classified as a.
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202) When the units are sold, Cost of Goods Sold is credited. 203) Fun Stuff Manufacturing produces ping pong balls using a three-step sequential process that includes molding, coloring and finishing. When the balls and associated costs are transferred from the coloring process to the finishing process, which account is credited? A).
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164) A shampoo manufacturer offers the following information: WIP inventory, January 1 0 units Units started 25,600 units Units completed and transferred out 19,200 units WIP inventory, December 31 6,400 units Direct materials $276,480 Direct labor $585,000 Manufacturing overhead $328,920 The units in ending WIP inventory were 60% complete for materials and 40% complete for conversion costs. On December 31, what.
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208) A contribution margin income statement allows managers to see which costs will change with changes in volume and which costs will remain fixed. 209) For retailers and service companies without inventory, operating income is different if a traditional income statement or a contribution margin income statement is prepared. 210) Sales revenue.
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242) Brambles Corporation has two sequential processing departments: Assembly then Shaping. The Shaping Department reports the following information. Conversion costs are applied evenly throughout the process. Beginning WIP inventory 8,000 unit Transferred-in costs in beginning WIP inventory $110,200 Direct materials cost in beginning WIP inventory $24,500 Conversion costs in beginning WIP inventory $22,750 Units transferred-in 57,000 units Transferred-in costs $546,300 Units completed 52,000 Costs.
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171) Regression analysis is found by using only the two data points of the highest and lowest volume. 172) The intercept-coefficient in regression analysis yields the fixed cost portion of the total costs. 173) The X Variable 1 Coefficient in regression analysis yields the variable cost per unit of activity. 174) An R-square.
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287) Discuss and compare absorption costing income statements with variable costing income statements. In your discussion, address the following questions: a.What is the main difference between the two methods? b.Under what circumstances will the operating income under each method be the same? c.What situation will cause the absorption costing income to.
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212) A transfer of $30,000 from the assembly department to the packaging department would require the entry of a A) debit to finished goods inventory. B) debit to WIP inventory-assembly. C) credit to WIP inventory-assembly. D) credit to raw materials inventory. 213) What would be included in the entry to record actual manufacturing overhead costs.
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232) The document many process costing companies use to summarize the entire five-step process on one schedule is called the A) conversion report. B) income costing statement. C) bill of materials. D) production cost report. 233) In a process costing system, the number of WIP inventories A) equals the number of production departments. B) equals the number.
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154) The Jones Corporation uses a process system. During the current period, 2,500 units were started and 1,100 units were completed and transferred out. Ending units were 60% complete for materials and 50% complete for conversion costs. Direct materials costs added were $35,405 and conversion costs added were $32,870. There.
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254) At Billy Distillery, direct materials are added at the beginning of the process and conversion costs are added throughout the process. Data for the finishing department follows: WIP, April 1 22,000 units Transferred-in costs in WIP, April 1 $95,200 Direct materials (100%) in WIP, April 1 $24,200 Conversion costs (65%) in WIP, April 1 $20,100 Units transferred-in 38,000 Transferred-in costs.
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278) Neon Company manufactures widgets. The following data is related to sales and production of the widgets for last year. Selling price per unit $ 130.00 Variable manufacturing costs per unit $ 62.00 Variable selling and administrative expenses per unit $ 5.00 Fixed manufacturing overhead (in total) $ 30,000 Fixed selling and administrative expenses.
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181) Direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: WIP beginning (50% for conversion) 28,400 units Units started 124,000 units Units completed and transferred out 107,000 units WIP ending (50% for conversion) 45,400 units Beginning WIP direct materials $53,200 Beginning WIP conversion costs $19,600 Costs of materials added $442,100 Costs of conversion added $304,650 Required: a.What.
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182) In process costing, there is only one Work in Process Inventory account for all of the individual processing departments. 183) When units are transferred from Processing Department #1 to Processing Department #2, a debit is made to WIP-Processing Department #2 to reflect the transferred-in costs. 184) When units are transferred from.
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218) When a merchandiser prepares a contribution margin income statement, Cost of Goods Sold is always a variable cost. 219) When a company produces more units than it sells, absorption costing operating income will be higher than variable costing operating income. 220) If the number of units produced equals the number of.
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191) On a regression analysis output generated with Excel, the slope of a mixed cost line is represented by the ________. A) x variable 1 coefficient B) intercept coefficient C) R-square D) residual 192) When predicting costs at other volumes using a cost equation derived from either the high-low method or regression analysis, managers should.
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169) McCartney Services has a customer website to take orders, answer customer questions, and address customer complaints. The costs associated with this customer website over the past six months are listed below: Month Customer website costs Number of website hits January $8,960 11,600 February $8,762 11,270 March $9,032 11,720 April $8,942 11,570 May $8,420 10,700 June .
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134) Describe the scattergraph method. Discuss the advantages and disadvantages of using the scattergraph method. 135) When using the high-low method, the slope of the mixed cost line is fixed cost per unit. 136) When using the high-low method, fixed costs and variable costs appear in the same cost equation. 137) The high-low.
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170) The following is information about the units produced and the total manufacturing costs for Rose's Rug Company for the past six months. Month Number of units produced Total manufacturing costs January 28,700 $61,400 February 31,000 $66,000 March 25,500 $55,000 April 26,000 $56,000 May 30,000 $64,000 June 29,000 $62,000 Rose's Rug Company uses the high-low method to estimate its costs. Answer the following questions: a.What is the.
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41) Selected financial data for Spark Enterprises follows for a production level of 120,000 units: Total fixed costs $ 300,000 Total costs (fixed and variable) $ 450,000 a.Calculate the variable cost per unit. b.If Flash Corporation makes 75,000 units, calculate the fixed cost per unit. c.If Flash Corporation makes 160,000 units, calculate the total variable costs. d.If.
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174) The mixing department has 44,000 equivalent units of direct materials and 25,000 equivalent units of conversion costs. The direct materials cost $33,000, and the conversion costs are $10,000. Assuming no beginning inventory, the total cost per equivalent unit is A) $0.98. B) $0.40. C) $1.15. D) $0.75. 175) The mixing department has 18,000 units.
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