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71) Assuming the relative-sales-value method of allocating joint costs, the amount of joint costs allocated to product A would be A) $19,600. B) $37,692. C) $29,120. D) $16,640. 72) Assuming the relative-sales-value method of allocating joint costs, the amount of joint costs allocated to product R would be A) $49,000.00. B) $39,760.00. C) $69,014.40. D) $22,720.00. 73) Assuming the relative-sales-value.
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Dorpinghaus Corp. manufactures two models of its telephones, a standard and a deluxe model.  Three activities have been identified as cost drivers and the related costs pooled together to arrive at the following information:    Product Number of Setups Number of Components Number of Orders Standard 48 32 1,760 Deluxe 64 56 3,000 Costs per pool $120,000 $304,000 $56,000 81) If activity-based costing is used, then the product setup cost.
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1) Measuring cost behaviour involves understanding and quantifying how activities of an organization affect levels of costs. 2) Cost behaviour can be graphed with a straight line when a cost changes proportionately with changes in a cost driver. 3) The rental of a car, which includes a fixed daily rate plus an.
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16) Linear-cost behaviour A) is linear over the entire range of production. B) cannot be graphed as a straight line. C) exists when a cost changes proportionately with changes in a cost driver. D) can be used to graph a step cost. 17) An example of a volume-driven cost in a book publishing enterprise is A).
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91) Explain the difference between a step cost and a mixed cost. 92) Explain management influences on cost behaviour. 93) Explain the difference between committed fixed costs and discretionary fixed costs and give an example of each. 94) The Arnott Company incurred the following maintenance costs during the past six months: MonthMachine HoursMaintenance Cost January120,000$456,000 February100,000420,000 March140,000492,000 April160,000528,000 May130,000474,000 June90,000402,000 a..
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21) The part of the accounting system that measures costs for the purposes of management decision making and financial reporting is referred to as A) period costing. B) cost accounting. C) system accounting. D) product costing. 22) Which of the following statements is NOT true? A) A cost may be defined as a sacrifice or giving.
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51) If the step-down method is used to allocate costs, and the Personnel Department renders the greatest service, then the total cost of the Finishing Department after allocation would be A) $25,000. B) $39,572. C) $39,892. D) $39,357. County Company has two service departments, Maintenance and Personnel, as well as two production departments, Mixing and.
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11) The contribution approach is a method of internal reporting that emphasizes the distinction between variable and fixed costs for the purpose of better decision making. 12) In the contribution approach, all factory overhead is considered to be product costs that are expensed as incurred. 13) Variable costing is also referred to.
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134) The Minler Company began the year 2006 with no inventories of work in process or finished goods.  The company produces a single product, and cost data for the product are given below. Variable costs: Direct material$10 per unit Direct labour15 per unit Manufacturing overhead6 per unit Selling expenses4 per unit Fixed costs: Manufacturing overhead$50,000 per month Selling.
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122) Henry Company has three support departments and two producing departments.  Information for each department for 2006 is as follows: Support DepartmentsProducing Departments PlantPlantPlant AdministrationMaintenanceCafeteriaMachiningAssembly Budgeted overhead costs$120,000$100,000$50,000$200,000$400,000 Direct labour hours6,00010,0004,00020,00030,000 Square feet occupied2,0003,0005,00035,00065,000 Number of employees5631525 Plant administration costs are allocated based on direct labour hours, plant maintenance costs are allocated based on square footage occupied, and plant cafeteria costs are allocated.
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106) Any activity for which a separate measurement of costs is desired. 107) A sacrifice or giving up of resources for a particular purpose. 108) Costs that can be identified specifically and exclusively with a given cost objective in an economically feasible way. 109) All costs other than direct material or direct labour.
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135) Radlin Inc. has just completed its first year of operations.  The unit costs on a normal costing basis are as follows: __________________________________________________________________ Manufacturing costs: Direct materials (3 lbs. @ $2)$   6.00/unit Direct labour (2 hrs. @ $8)16.00/unit Variable overhead (2 hrs. @ $1.75)3.50/unit Fixed overhead? Total$? Selling and administrative costs: Variable$4.00/unit Fixed$100,000 __________________________________________________________________ During the year, the company had the following.
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128) The following information was taken from the records of the Greiner Company for the year ended December 31, 20X3. There were no beginning or ending inventories. Sales$270,000 Selling expenses: Fixed10,800 Variable27,400 Direct labour39,000 Factory overhead: Fixed29,600 Variable25,800 Administrative expenses: Fixed44,600 Variable72,200 Direct materials34,400 Prepare an income statement for the year ended December 31, 20X3 for the Greiner Company using both the absorption.
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130) Ginsberg Limited has provided the following information for the year ended April 30, 20X1. Units sold4,200 units Units produced5,600 units Direct labour$49,800 Direct materials used$77,500 Fixed manufacturing overhead$26,320 Variable manufacturing overhead$35,100 Selling and administrative expenses (all fixed)$32,400 Beginning inventoriesnone Contribution margin$35,600 Direct-materials inventory, 6/30$  9,960 WIP, 6/30none Required: a.What is the ending finished-goods inventory cost under variable costing? b.What is the ending finished-goods.
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126) Elder, Inc. has supplied the following information: Amortization-factory$  29,900 Direct labour82,400 Direct material purchases96,300 Factory insurance8,600 Factory maintenance23,500 Factory utilities16,800 General & administrative expenses71,200 Indirect labour18,400 Indirect materials7,200 Sales475,000 Selling expenses67,600 Beginning direct materials inventory12,300 Beginning work-in-process inventory25,900 Beginning finished-goods inventory62,700 Ending direct materials inventory14,500 Ending work-in-process inventory33,300 Ending finished-goods inventory55,500 Required: a.Compute the cost of goods manufactured. b.Compute the cost of goods sold. c.Compute the net income. 127) The following.
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133) Hopson Manufacturing uses an actual cost system for product costing.  The company's income statement for 2006 is presented below: HOPSON MANUFACTURING COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2006 Sales (10,000 units @ $20)$200,000 Cost of Goods Sold: Finished Goods Inventory, January 1 $- 0 - Cost of Goods Manufactured      (12,000 units @ $15)180,000 Goods.
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95) Conquest Industries made the following observations of supply costs at different production volume levels: MonthSupply CostProduction (Units) January$    960420 February1,060580 March1,180760 April980480 May940380 June900400 July1,120620 August1,260840 September1,200800 October1,360900 November1,160720 December1,040540 a. Using the method of least squares, develop an estimate of total fixed costs and variable cost per unit.  (Round your estimate of variable cost per unit to two decimal points.) b. Develop a.
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DeJager Company reported the following information about the production and sales of its only product: Direct materials used $32,000 Direct labour $20,000 Variable factory overhead $12,000 Fixed factory overhead $16,000 Variable selling and administrative expenses $  4,000 Fixed selling and administrative expenses $  6,000 Beginning inventories none Ending inventories: Direct materials -0- WIP -0- Finished goods 600 units Sales ($45 per unit) $63,000 71) The cost of goods sold under variable costing would be A).
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21) A group of individual costs that is allocated to cost objectives using a single cost driver is known as a A) cost allocation base. B) cost pool. C) joint cost. D) by-product. 22) Costs are allocated for all the following purposes EXCEPT to A) predict the economic effects of planning and control decisions. B) obtain desired.
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91) What is the cost per driver unit for the correspondence activity? A) $40.00 B) $0.07 C) $3.75 D) $12.50 92) How much of the account inquiry cost will be assigned to Department A? A) $40,000 B) $200,000 C) $80,000 D) None of the above 93) How much of the account billing cost will be assigned to Department B? A) $14,000 B).
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11) One of the main objectives of cost allocation is to motivate managers. 12) One of the main objectives of cost allocation is to value inventory. 13) Actual costs should always be used when allocating service department costs. 14) Service department costs should be allocated directly to units of product. 15) If the allocation.
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79) Understanding and quantifying how activities of an organization affect levels of costs. 80) Activity that can be graphed with a straight line when a cost changes proportionately with changes in a cost driver. 81) Costs that change abruptly at intervals of activity because the resources and their costs come in indivisible.
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61) Another term for cost application is A) cost pool. B) cost driver. C) cost objective. D) cost attribution. 62) Each of the following is a step in the general approach to allocating costs to final products or services EXCEPT A) select one or more cost drivers in each production department. B) allocate production-related costs to the.
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31) The amount of variable maintenance costs allocated to the Cutting Department should be A) $80,000. B) $96,000. C) $64,000. D) $83,333. 32) The amount of variable maintenance costs allocated to the Assembling Department should be A) $56,000. B) $64,000. C) $50,000. D) $48,000. 33) To allocate central costs, a company could use all of the following cost drivers EXCEPT.
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97) In order to better predict setup costs, the plant manager has asked the computer centre to use the least squares method to generate a printout for use in estimating setup costs. The following computer printout was generated and given to the plant manager. Intercept150.00 Slope10.00 Correlation Coefficient.98 Activity Variable:Number of Setups The plant manager brought.
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1) The goal of a cost accounting system is to measure the cost of developing, producing, selling and distributing particular products or services. 2) The direct method of allocating service department costs partially recognizes services that service departments provide to each other. 3) The reciprocal method of allocating service department costs fully.
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41) An example of a product cost is A) advertising expense. B) amortization on office equipment. C) indirect materials. D) store supplies expense. 42) Which of the following is NOT a period cost? A) Wages of clerical staff B) Advertising expense C) Factory supplies used D) Amortization on salesperson's car 43) Which of the following is NOT a product cost? A).
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123) Henry Company has three support departments and two producing departments.  Information for each department for 2006 is as follows: Support DepartmentsProducing Departments PlantPlantPlant AdministrationMaintenanceCafeteriaMachiningAssembly Budgeted overhead costs$120,000$100,000$50,000$200,000$400,000 Direct labour hours6,00010,0004,00020,00030,000 Square feet occupied2,0003,0005,00035,00065,000 Number of employees5631525 Plant administration costs are allocated based on direct labour hours.  Allocate the support depart ment costs using the sequential (step) method starting with the support department.
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The Schmidt Company used regression analysis to predict the annual cost of indirect materials.  The results were as follows: Indirect Materials Cost  Explained by Units Produced Constant         $4,378 Standard error of Y estimate              $  912 R-squared         0.9183 No. of observations     12 Degrees of freedom   10 X coefficient(s)     2.35 Standard error of coefficient(s)   0.437525 66) The total fixed.
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91) The operating income (loss) under absorption costing would be A) $ 33,200. B) $ 16,400. C) $( 6,000). D) $(20,000). A company has the following information: Beginning inventories none Raw materials used $  50,000 Sales ($130 per unit) $156,000 Direct labour $  84,000 Variable factory overhead $  34,000 Fixed factory overhead unknown Variable selling and administrative $    6,000 Fixed selling and administrative $  10,000 Gross profit $  60,000 Contribution margin unknown Ending inventories Raw materials $  14,000 WIP none Finished.
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51) Which of the following methods is required for external financial reporting? A) Contribution approach B) Variable costing C) Direct costing D) Absorption approach 52) When using the absorption approach to costing, A) all variable costs are inventoriable. B) all indirect manufacturing costs are inventoriable. C) all fixed costs are treated as period costs. D) all direct manufacturing costs.
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61) Which format does the CICA Handbook advocate for reporting income? A) Direct costing B) Variable costing C) Indirect costing D) Full costing 62) All manufacturing costs are assigned to the product under which method of product costing? A) Direct costing B) Variable costing C) Absorption costing D) Fixed costing DeJager Company reported the following information about the production and.
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124) There are three Easy Stay Inns, one in each of the following cities:  Britton, Casey, and Sloop. The central office provides computer services to each of the three motels.  Information pertaining to the computer centre and the three motels follows. Computer CentreBrittonCaseySloop Budgeted fixed costs$150,000-    -    -  Budgeted variable rate      per hour$         25-   .
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132) Bowzer Industries began operations on January 1, 2006.  The company sells a single product for $10 per unit. During 2006, 60,000 units were produced and 50,000 units were sold. There was no work in process inventory at December 31, 2006. Bowzer uses an actual cost system for product costing and.
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81) The net income under variable costing would be A) $32,000. B) $44,000. C) $50,000. D) $66,000. 82) Under variable costing, which manufacturing cost is expensed as a period cost? A) Fixed manufacturing overhead. B) Direct materials. C) Variable manufacturing overhead. D) Direct labour. 83) In variable costing, costs are separated into the major categories of A) manufacturing and non-manufacturing. B) manufacturing.
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46) Engineering cost analysis A) measures cost behaviour according to what cost should be. B) measures cost behaviour according to what costs have been. C) involves very little cost to perform. D) is accurate and timely. 47) ________ measures cost behaviour according to what costs should be, NOT by what costs have been. A) Engineering analysis B).
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41) A method for allocating service department costs that ignores other service departments when any given service department's costs are allocated to the revenue-producing departments is called the A) direct method. B) indirect method. C) step-down method. D) step-up method. 42) In the step-down method, the last service department in the sequence is the one.
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123) Indicate whether each of the following costs is an Inventoriable cost (I) or a Period cost (P): ________1.advertising expense ________2.amortization of machinery ________3.amortization on office equipment ________4.amortization of store equipment ________5.direct labour ________6.direct materials ________7.factory supervisor's salary ________8.factory supplies ________9.factory utilities ________10.indirect labour ________11.indirect materials ________12.machinery repairs and maintenance ________13.office salaries ________14.office supplies ________15.sales commissions 124) Indicate whether each of the following costs is an.
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101) If Department C uses machine hours to allocate overhead to units of product, the overhead rate per machine hour for Department C would be A) $35.67. B) $29.00. C) $32.66. D) $39.67. 102) If Department D uses direct labour hours to allocate overhead to units of product, the overhead rate per direct labour hour.
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95) The Orton Company produces two types of food processors.  Information about the two products for 2006 is as follows: RegularDeluxe Selling price per unit$75 $100 Variable costs per unit5050 Contribution margin per unit$2550 The company expects fixed costs to be $150,000 in 2006.  The firm expects 80% of its sales (in units) to be.
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31) An example of direct labour would be A) janitor's wages. B) factory foreman's wages. C) machine operator's wages. D) plant guard's wages. 32) Factory overhead includes A) direct materials and direct labour. B) prime costs. C) indirect and direct labour. D) indirect labour and indirect materials. 33) Which of the following is NOT a factory overhead cost? A) Wages of.
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1) Cost accounting is that part of the accounting system that measures costs for the purposes of management decision making and financial reporting. 2) Cost accounting system typically includes two processes, cost accumulation and cost determination. 3) Direct costs can be identified specifically and exclusively with a given cost objective in an.
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121) The Majors Company has gathered the following information for the year ended December 31, 20X3. Sales$520,000 Direct materials used129,000 Direct labour76,000 Factory overhead: Fixed62,000 Variable33,000 Selling expenses: Fixed21,000 Variable44,000 General and administrative expenses: Fixed43,000 Variable23,000 There were no beginning or ending inventories. Required: Calculate the following: a.Prime cost b.Conversion cost c.Total product cost d.Total period cost .
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