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21) Companies typically wait for accurate information regarding actual manufacturing overhead costs before pricing a job. 22) The budgeted indirect cost rate is the budgeted indirect costs divided by budgeted quantity of the cost allocation base. 23) Direct costs are traced the same way for actual costing and normal costing. 24).
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11) What is the journal entry used to write off the difference between allocated and actual overhead using the proration approach? A) Manufacturing Overhead Allocated              200,000     Work-in-Process Control              10,000     Finished Goods Control              20,000 Manufacturing Overhead Control              230,000 B) Manufacturing Overhead Allocated              225,000 Work-in-Process Control              1,250 Finished Goods Control              2,500 Cost of Goods Sold              21,250 Manufacturing Overhead.
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7) If indirect-cost rates are calculated monthly, distortions might occur because of: A) rental costs paid monthly B) property tax payments made in July and December C) routine monthly preventive-maintenance costs that benefit future months D) Both B and C are correct. 8) Stewart Company's actual manufacturing overhead is $2,800,000. .
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44) Jordan Company has two departments, X and Y. Overhead is applied based on direct labor cost in Department X and machine-hours in Department Y. The following additional information is available: Budgeted AmountsDepartment XDepartment Y Direct labor cost              $180,000              $165,000 Factory overhead              $225,000              $180,000 Machine-hours              51,000              mh              40,000mh Actual data for Job #10Department XDepartment Y Direct.
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4) An example of a denominator reason for calculating annual indirect-cost rates includes: A) higher heating bills in the winter B) semi-annual insurance payments in March and September C) higher levels of output demanded during the fall months D) All of these answers are correct. 5) When calculating indirect cost.
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15) In multiproduct situations when sales mix shifts toward the product with the lowest contribution margin, the breakeven quantity will decrease. 16) In multiproduct situations when sales mix shifts toward the product with the highest contribution margin, operating income will be higher. 17) To calculate the breakeven point in a.
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17) In 2011, Grant Company has sales of $800,000, variable costs of $200,000, and fixed costs of $300,000. In 2012, the company expects annual property taxes to decrease by $15,000.   Required: a.Calculate operating income and the breakeven point for 2011. b.Calculate the breakeven point for 2012. 18) Furniture, Inc., sells lamps for $30..
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5) Traditional cost systems distort product costs because: A) they do not know how to identify the appropriate units B) competitive pricing is ignored C) they emphasize financial accounting requirements D) they apply average support costs to each unit of product 6) Which of the following statements about activity-based costing.
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Answer the following questions using the information below: Gibson Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Winfield.
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1) The budgeted indirect-cost rate is calculated: A) at the beginning of the year B) during the year C) at the end of each quarter D) at the end of the year 2) The difference between actual costing and normal costing is: A) normal costing uses actual quantities of direct-costs B) actual costing uses actual quantities of.
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1) In a normal costing system, the Manufacturing Overhead Control account: A) is increased by allocated manufacturing overhead B) is credited with amounts transferred to Work-in-Process C) is decreased by allocated manufacturing overhead D) is debited with actual overhead costs 2) The Materials Control account is increased when: A) direct.
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21) Sprint Manufacturing Company produces two products, X and Y. The following information is presented for both products: XY Selling price per unit$30$20 Variable cost per unit205 Total fixed costs are $292,500. Required: a.Calculate the contribution margin for each product. b.Calculate breakeven point in units of both X and Y if the sales mix is 3 units.
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28) Sedgwick County Hospital uses an indirect job-costing system for all patients. In June, the budgeted nursing care charges for each department and budgeted allocation bases of nursing days are as follows:                  June                               Critical CareSpecial CareGeneral Care Budgeted nursing costs              $2,480,000              $1,644,000              $1,280,400 Budgeted nursing days              5,000              4,000              8,000 Patient Ms. Graves.
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12) Modern Electronics manufactures surround sound systems and applies manufacturing costs to production at a budgeted indirect-cost rate of $22 per direct-labor hour. The following data are obtained from the accounting records for August 20X9: a.What actual amount of manufacturing overhead cost was incurred during August 20X9? b.What amount of manufacturing overhead.
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48) The Dougherty Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4,000 machine-hours in Department 100 and 8,000 direct manufacturing labor-hours in Department 200. The budgeted manufacturing overheads for the month were $57,500 and $62,500, respectively. For Job A, the actual costs incurred.
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21) For every $25,000 of ticket packages sold, operating income will increase by: A) $6,250 B) $12,500 C) $18,750 D) an indeterminable amount Answer the following questions using the information below: Northenscold Company sells several products. Information of average revenue and costs is as follows: Selling price per unit$20.00 Variable costs per unit: Direct.
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23) Bob's Textile Company sells shirts for men and boys. The average selling price and variable cost for each product are as follows: Men'sBoys' Selling Price$28.80Selling Price$24.00 Variable Cost$20.40Variable Cost$16.80 Fixed costs are $38,400. Required: a.What is the breakeven point in units for each type of shirt, assuming the sales mix is 2:1 in favor of.
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Answer the following questions using the information below: The following information is for the Jeffries Corporation: Product A: Revenue$16.00 Variable Cost$12.00 Product B: Revenue$24.00 Variable Cost$16.00 Total fixed costs$75,000 5) What is the breakeven point, assuming the sales mix consists of three units of Product A and one unit of Product B? A) 10,000 units of A.
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31) The ending balance of finished goods inventory is: A) $58,000 B) $36,000 C) $94,000 D) $292,000 Answer the following questions using the information below: Apple Valley Corporation uses a job cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are: Department ADepartment B Direct materials             .
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Answer the following questions using the information below: Nancy's Niche sells a single product. 8,000 units were sold resulting in $80,000 of sales revenue, $20,000 of variable costs, and $10,000 of fixed costs. 31) The breakeven point in total sales dollars is: A) $40,000 B) $13,334 C) $100,000 D) None of these.
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44) Berhannan's Cellular sells phones for $100. The unit variable cost per phone is $50 plus a selling commission of 10%. Fixed manufacturing costs total $1,250 per month, while fixed selling and administrative costs total $2,500. Required: a.What is the contribution margin per phone? b.What is the breakeven point in phones? c.How many phones.
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21) Estimated total product costs for this special order equal: A) $96,000 B) $50,000 C) $80,000 D) None of these answers is correct. 22) The bid price for this special order is: A) $50,000 B) $60,000 C) $80,000 D) $96,000 Answer the following questions using the information below: Philadelphia Company manufactures.
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1) The spreading of underallocated or overallocated overhead among ending work-in-process, finished goods, and cost of goods sold is called: A) the adjusted allocation rate approach B) the proration approach C) the write-off of cost of goods sold approach D) None of these answers are correct. 2) The method that.
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11) For externally reported inventory costs, the Work-in-Process Control account is increased (debited) by: A) marketing costs B) allocated plant utility costs C) the purchase costs of direct and indirect materials D) customer-service costs 12) What is the appropriate journal entry if $100,000 of materials were purchased on account for.
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17) Managers and accountants collect most of the cost information that goes into their systems through: A) an information databank B) computer programs C) source documents D) time surveys 18) Using job costing, the 2010 actual indirect-cost rate is: A) $4.00 per machine-hour B) $4.80 per machine-hour C) $5.00 per.
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22) Pumpkin Plastic Products Company manufactures pipes and applies manufacturing costs to production at a budgeted indirect-cost rate of $9 per direct labor-hour. The following data are obtained from the accounting records for June 2010: Direct materials              $300,000 Direct labor (16,000 hours @ $11/hour)              $ 44,000 Indirect labor              $ 20,000 Plant facility rent              $.
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25) The following information was gathered for Jasmine Company for the year ended December 31, 2010 BudgetedActual Direct labor-hours75,000dlh80,000dlh Factory overhead$600,000$625,000 Assume that direct labor-hours are the cost-allocation base. Required: a.Compute the budgeted factory overhead rate. b.Compute the factory overhead applied. c.Compute the amount of over/underapplied overhead. 26) Isabelle, Inc., uses a budgeted factory overhead rate to apply.
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7) Assume there is an increase in advertising expenditures and all other CVP parameters remain constant. This change will: A) reduce operating income B) reduce contribution margin C) increase variable costs D) increase selling price 8) Bassman Company operates on a contribution margin of 30% and currently has fixed costs.
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25) Atlanta Radio Supply sells only two products, Product X and Product Y. Product X Product Y Total Selling price $25 $45 Variable cost per unit $20 $35 Total fixed costs $350,000 Atlanta Radio Supply sells three units of Product X for each two units it sells of Product Y. Atlanta Radio Supply has a tax rate of 25%. Required: a.What is the.
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6) Sensitivity analysis is a "what-if" technique that managers use to examine how a result will change if the originally predicted data are NOT achieved or if an underlying assumption changes. 7) Margin of safety measures the difference between budgeted revenues and breakeven revenues. 8) If a company's breakeven revenue.
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14) James Corporation gathered the following information: Variable costs$550,000 Income tax rate40% Contribution-margin ratio30% Required: a.Compute total fixed costs assuming a breakeven volume in dollars of $2,000,000. b.Compute sales volume in dollars to produce an after-tax net income of $150,000. 15) What effect, and why, would an increase in the tax rate have on a company's.
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21) Query Company sells pillows for $25.00 each. The manufacturing cost, all variable, is $10 per pillow. The company is planning on renting an exhibition booth for both display and selling purposes at the annual crafts and art convention. The convention coordinator allows three options for each participating company. They.
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1) ________ costing is used by a business to price homogeneous products. A) Actual B) Job C) Process D) Traditional 2) Process costing: A) allocates all product costs, including materials and labor B) results in different costs for different units produced C) is commonly used by general contractors who construct custom-built.
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27) Maddow Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Patterson High School Science Olympiad Jacket job. CompanyPatterson.
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