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36) Which of the following statements regarding special order decisions is false? A) A fixed-cost element of an identical amount that is common among all alternatives is essentially irrelevant. B) Fixed cost per unit is equal to total fixed costs divided by a selected volume level. C) The contribution approach offers more detailed.
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81) Adams Inc. manufactures a product that passes through two processes:  assembly and finishing. All manufacturing costs are added uniformly for both processes. Information for the assembly department for the month of November follows. Work-in-process, November 1: Direct Materials$10,000 Direct labour15,000 Overhead8,000 Number of units (20% complete)6,000 During November, 20,000 units were completed and transferred to the.
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88) Russell Company had the following balances as of December 31, 20X5. Cost of goods sold$500,000 Direct-materials inventory100,000 WIP inventory340,000 Finished goods inventory160,000 Factory department overhead control50,000 Cr. Required: a. Does the variance represent over- or underapplied overhead? b.Prepare the entry to dispose of the variance using the proration method. c.What effect, if any, did the entry in part.
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97) Mudd Corp. manufactures two styles of table lamps, Gold and Silver.  The following data is available: Gold Silver Selling price per unit$50$70 Variable cost per unit$34$46 Machine hours required1.63 Total fixed costs$60,000 Mudd can sell a maximum of 10,000 units of each style of lamp.  Machine hour capacity is 25,000 hours per year. Required: a.Which lamp has.
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Use the following information to answer the following item(s). Estimated overhead $320,000 Actual overhead costs incurred $344,400 Estimated direct labour hours 40,000 Actual direct labour hours worked 42,000 24) The budgeted factory overhead rate for applying manufacturing overhead would be A) $7.62. B) $8.00. C) $8.20. D) $8.61. 25) If the budgeted factory overhead rate is used to apply overhead, applied manufacturing overhead would.
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82) The FSR Company uses a budgeted factory overhead rate to apply manufacturing overhead to production.  The rate is based on direct labour hours.  Estimates for the year 2006 are given below: Estimated manufacturing overhead$500,000 Estimated direct labour hours50,000 During 2006 the Paine Company used 60,000 direct labour hours.  At the end of.
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94) The juncture in manufacturing where the joint products become individually identifiable. 95) Any costs beyond the split-off point. 96) The costs of manufacturing joint products prior to the split-off point. 97) The periodic cost of equipment which is spread over the future periods in which the equipment is expected to be used. 98).
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81) The predicted future costs and revenues that will differ among alternative courses of action. 82) Any method of making a choice, sometimes requiring elaborate quantitative procedures. 83) Costs that will not continue if an ongoing operation is changed or deleted. 84) Costs that continue even if an operation is halted. 85) The item.
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85) Cowbell Incorporated uses a job-order costing system and a budgeted factory overhead rate based on machine hours.  At the beginning of the year, Cowbell estimated manufacturing overhead for the year at $50,000.  Machine hours were estimated at 8,000.  The following information pertains to December of the current year: Job No..
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1) Opportunity cost is the maximum available contribution to profit foregone by using limited resources for a particular purpose. 2) An outlay cost is a cost that requires a cash disbursement. 3) All fixed costs are irrelevant and only variable costs are relevant to the decision-making process. 4) Make-or-buy decisions can apply to.
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86) Samsonite Corp. uses a budgeted factory-overhead rate to apply overhead to production. The following data are available for the year ended December 31, 20X1. Budgeted factory overhead$337,500 Actual factory overhead$358,000 Budgeted direct-labour costs$225,000 Actual direct-labour costs$216,000 Budgeted direct-labour hours25,000 Actual direct-labour hours26,650 Required: a.Determine the budgeted factory-overhead rate based on direct-labour costs. b.Determine the budgeted factory-overhead rate based.
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84) IIF Industries uses a job-order costing system and applies overhead on the basis of direct labour hours.  At the beginning of 2006, management estimated that 200,000 direct labour hours would be worked and $600,000 of overhead costs would be incurred. During the year, the company actually worked 220,000 direct labour.
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56) The effect of price changes on sales volume is A) marginal revenue. B) price elasticity. C) maximization of profits. D) imperfect competition. 57) In perfect competition, the profit-maximizing volume is the quantity at which A) marginal cost equals marginal revenue. B) marginal revenue exceeds marginal cost. C) marginal revenue exceeds price. D) price exceeds marginal cost. 58) A firm.
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66) In backflush costing, the journal entry to record the cost of goods sold during the period would include a A) debit to Finished Goods Inventory. B) debit to Conversion Costs. C) credit to Work-in-process. D) debit to Cost of Goods Sold. 67) In backflush costing, any remaining balance in the conversion costs account at.
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82) The following information pertains to the mixing department of National Paint Products for May 2006. UNITS Work-in-process, May 1 (100% complete, materials; 60% complete, labour and overhead)5,000 Started during May80,000 Work-in-process, May 31 (100% complete, materials; 35% complete, labour and overhead)9,000 Cost of work-in-process, on May 1, in the mixing department were as follows: Work-in-process, May 1: Materials$     34,000 Direct labour23,000 Overhead      .
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1) Cost-accounting systems fulfill two major purposes: (1) they allocate costs to departments for planning and control, and (2) they apply costs to units of product for product costing. 2) All product costing uses averaging to determine total costs of production. 3) Unlike job-order costing, process costing requires only one work-in-process account. 4).
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81) Bombast Industries identified the following budgeted overhead activities and drivers: Activity PoolsActivity Drivers Machining$80,000Machine hours10,000 Setups15,000Number of setups5,000 Purchasing10,000Purchase orders2,000 Data associated with Job 786 follows. Direct materials$1,000 Direct labour3,500 Machine hours300 Number of setups50 Purchase orders20 a. Calculate a unit-based overhead rate using machine hours. b. What is the total cost of Job 786 using the above rate? c. Calculate three.
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79) Josef Company makes a variety of chemicals. Its Mixing department had the following information regarding costs and output: Units: Started and completed35,000 units Started and still in process*12,500 units Costs: Direct materials$209,000 Direct labour$  21,700 Factory overhead$  86,800 *Direct materials: 100 percent complete; Conversion costs: 30 percent complete Required: Compute the cost of work completed and the cost.
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104) Swenson Company produces a part that is used in the manufacture of one of its products. The costs associated with the production of  10,000 units of this part are as follows: Direct materials$ 100,000 Direct labour170,000 Variable factory overhead300,000 Fixed factory overhead  250,000 $820,000 Of the fixed factory overhead costs, $35,000 is avoidable. Required: a.Assuming there is.
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34) The journal entry to record the factory overhead costs incurred would include a A) debit to Factory Department Overhead Control for $292,000. B) credit to Factory Department Overhead Control for $286,000. C) debit to WIP Inventory for $292,000. D) credit to WIP Inventory for $286,000. 35) The journal entry to record the application of.
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44) To apply the budgeted overhead to a job, the budgeted overhead rate is multiplied by the A) actual cost-driver data. B) budgeted cost-driver data. C) actual factory-overhead costs. D) estimated factory-overhead costs. Harnack Company had the following information: Budgeted variable factory overhead $88,000 Budgeted fixed factory overhead 62,000 Actual variable factory overhead 90,000 Actual fixed factory overhead 70,000 Budgeted cost driver activity levels: Direct-labour.
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16) The accountant's primary role in the decision-making process is to A) make the decision. B) collect relevant information. C) report irrelevant information. D) provide emotional support. 17) In decision making, the key question is: A) What are the fixed costs of each alternative? B) What are the past costs of each alternative? C) What difference will the.
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84) A relevant costing analysis that focuses on whether a component should be made internally or purchased externally. 85) A relevant costing analysis that focuses on whether a product should be processed beyond the split-off point. 86) The point where products become distinguishable after passing through a common process. 87) A relevant costing.
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56) The costs of manufacturing joint products after the split-off point are referred to as A) joint costs. B) outlay costs. C) opportunity costs. D) separable costs. 57) Which of the following is NOT an example of a joint product? A) Sponges B) Chemicals C) Lumber D) Meat packing 58) Two or more manufactured products that have relatively significant sales.
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74) A variance that results when applied overhead is greater than the actual overhead cost incurred. 75) A difference between actual overhead and applied overhead. 76) A cost accumulation method that accumulates costs by processes or departments. 77) The overhead assigned to production using a predetermined overhead rate. 78) A system that accumulates manufacturing.
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36) The total cost of units completed and transferred to Finishing is A) $2,112,000. B) $2,140,000. C) $1,848,000. D) $352,000. 37) The total cost of ending work-in-process inventory is A) $352,000. B) $292,000. C) $264,000. D) $240,000. Ankenbauer Company manufactures keyboards in a two-department process, Assembly and Finishing.  Information on the first department, Assembly, follows: Direct materials added $1,400,000 Direct labour 1,920,000 Factory.
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The Chou Company provided the following information regarding its one and only product, rollers: Direct labour $45,000 Direct materials used 30,000 Fixed factory overhead 42,000 Fixed selling and administrative expenses 8,000 Variable factory overhead 28,000 Variable selling and administrative expenses 12,000 Selling price per unit 20 Units produced and sold 10,000 26) What is the current net income? A) $200,000 B) $165,000 C) $35,000 D) $85,000 27) Assuming there is excess capacity,.
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14) Which of the following is a product cost? A) Direct material costs B) Selling costs C) Distribution costs D) Administrative costs 15) Which of the following industries is most likely to NOT use a job-order costing system? A) Construction B) Chemicals C) Aircraft D) Printing 16) Which of the following industries is most likely to NOT use a process.
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56) The total cost of the ending work-in-process is A) $403,200. B) $241,920. C) $333,792. D) $342,720. 57) Under process costing, the method of handling beginning work-in-process inventory that is almost never used in practice is A) weighted-average. B) FIFO. C) last-in, first-out. D) specific identification. Kirkpatrick Company uses a process-cost system with the FIFO method of accounting for beginning.
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95) Muench Company has three departments.  Data for the most recent year is presented below:      M        L        B   Sales$2,000$1,000$400 Variable expenses640260170 Fixed expenses: Unavoidable46026060 Avoidable580520270 Required: a.Compute the operating income of the company. b. Compute the contribution margin and operating income of each department. c.Should any department(s) be eliminated? Which one(s) and why? 96) Morrow, Inc..
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46) Once product M is produced, processing it further will cause profits to A) increase by $160,000. B) decrease by $ 80,000. C) decrease by $160,000. D) increase by $ 80,000. 47) Product L A) should be processed further to increase profits by $130,000. B) should be sold at split-off since processing further would only reduce profits.
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16) The system, which applies costs to like products that are usually mass-produced in continuous fashion through a series of production processes, is known as A) process costing. B) variable costing. C) job-order costing. D) JIT costing. 17) Which of the following is NOT an example of a product that would be manufactured in a.
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99) Drost, Inc. has budgeted sales of $150,000 with the following budgeted costs: Direct materials$31,500 Direct labour20,500 Factory overhead: Variable18,500 Fixed28,000 Selling and administrative expenses: Variable12,000 Fixed16,000 Compute the average target profit percentage for setting prices as a percentage of: a.Prime costs. b.Total costs. c.Total variable costs. d.Variable manufacturing costs. e.Total manufacturing costs. 100) Ellson Corp. has budgeted sales of $487,500 with the following budgeted.
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77) Lee Stevens makes frozen pizzas. All direct materials are introduced at the start of the process. Conversion costs are incurred evenly throughout the process. In January there was no beginning WIP inventory, but 690,000 units were started, completed and transferred to finished goods inventory. At January 31 there were.
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46) Assuming Eagan Company can increase the selling price of product B to  $21,000, all other information remaining constant, operating income  will A) decrease $ 2,000. B) decrease $ 6,000. C) increase $21,000. D) increase $ 2,000. 47) The item that restricts or constrains the production or sale of a product or service is the A).
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72) A unit-costing method that excludes prior-period work and costs in computing current-period unit work and costs. 73) A method of process manufacturing in which subunits pass through different sequential processes before being brought together in a final process. 74) A method of process manufacturing in which units flow from one process.
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The following information was gathered for Larsen Company for the year ended December 31, 20X1. Budgeted direct-labour hours 15,500 Actual direct-labour hours 16,200 Budgeted factory overhead $73,625 Actual factory overhead $74,990 54) Assume that direct-labour hours is the cost driver. What is the budgeted factory-overhead rate? A) $4.75 B) $4.63 C) $4.54 D) $4.84 55) Assume that direct-labour hours is the cost driver. What.
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46) In a production-cost report, the total costs accounted for is equal to the cost of units completed and transferred plus the cost of A) beginning work-in-process. B) the units started and finished. C) the units completed but still on hand. D) ending work-in-process. 47) In process costing, the journal entry to record direct materials.
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102) The Tippett Company manufactures two products, 12-07 and 19-01.  Contribution margin per unit is determined as follows: 12-0719-01 Revenue$25$20 Variable costs1512 Contribution margin$10$  8 Total demand for 12-07 is 5,000 units and for 19-01 is 10,000 units. Direct labour is a scarce resource.  40,000 direct labour hours are available during the year.  Product 12-07 requires.
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91) Radke, Inc. gathered the following information regarding its one and only product: Direct materials used$14,000 Direct labour24,000 Variable factory overhead28,000 Fixed factory overhead18,000 Variable selling and administrative expenses30,000 Fixed selling and administrative expenses16,000 Units produced and sold5,000 Selling price per unit$30 Required: a.Compute the unit manufacturing cost of the product under the   absorption approach. b.Compute the unit manufacturing cost of.
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1) The predicted future costs and revenues that will differ as a result of alternative courses of actions are referred to as relevant information. 2) The accountant's role in decision making involves collecting the relevant information and ultimately making the final choice. 3) A decision model is any method for making a.
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101) The Deerfield Company has annual productive capacity of 60,000 units per year.  Budgeted operating results for 2006 are as follows: Revenues (50,000 units @ $10)$500,000 Variable costs: Manufacturing (50,000 @ $3.20)$160,000 Selling (50,000 @ $0.80)    40,000  200,000 Contribution margin$300,000 Fixed costs: Manufacturing100,000 Selling and administrative    80,000  180,000 Operating income$120,000 A wholesaler from another country wants to buy 5,000 units.
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66) The total of all manufacturing costs plus the total of all selling and administrative costs is equal to A) marginal cost. B) target cost. C) full cost. D) contribution cost. 67) All of the following represent a popular markup formula for pricing EXCEPT A) as a percentage of fixed costs. B) as a percentage of variable.
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26) Cost of ending work-in-process is A) $77,640. B) $82,632. C) $85,128. D) $90,120. Edwards Company produces calendars in a one-department process.  The following information is available: Direct materials added $120,000 Direct labour $  82,800 Factory overhead $  41,400 Work-in-process, beginning inventory -0- Units started 30,000 Units completed and transferred out 24,000 Work-in-process, ending inventory 6,000 27) The total of costs to account for is A) $244,200. B) $120,000. C) $ 82,800. D) $.
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