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11) The market-share variance is caused solely by the actual market share being different than the budgeted market share. 12) A favorable market-size variance results with a decrease in market size. 13) A difficulty with the market-share and market-size variances is that accurate measures of market share and market size.
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48) Creative Colors Paint Company placed 315,000 litres of direct materials into the mixing process. All direct materials are placed in mixing at the beginning of the process and conversion costs occur evenly during the process. Creative Colors uses weighted-average costing. The initial forecast for the end of the month.
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11) Top management and general administration costs would MOST likely be classified as a A) customer output unit-level cost. B) customer batch-level cost. C) customer-sustaining cost. D) corporate-sustaining cost. E) distribution-channel cost. 12) The cost of visiting customers would MOST likely be classified as a A) customer output unit-level cost. B).
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Answer the following questions using the information below: The Rest-a-Lot chair company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 75,000 chairs. During the month, the firm completed 80,000 chairs, and transferred them to the Finishing Department. The firm ended the month with 10,000 chairs in.
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31) The sales-quantity variance arises because A) the mix of individual products actually sold differs from the budgeted mix. B) the total quantity of units actually sold differs from the static budget. C) the total quantity of units expected to be sold differs from the static budget. D) the mix of budgeted products sold.
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43) Why would businesses want to sell bundled products? What benefits, if any, are there for the consumer? 44) Describe and discuss the two methods of allocating the revenues of a bundled package to the individual products in that package. Describe any special problems associated with the method. 45) Under the stand-alone.
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41) What is the company's market-size variance? A) $4,800 favourable B) $3,200 favourable C) $2,400 favourable D) $2,400 unfavourable E) $3,200 unfavourable Answer the following question(s) using the information below: Zorro Company manufactures remote control devices for garage doors. The following information was collected during June: Actual market size (units)10,000 Actual market share32% Actual average selling price$10.00 Budgeted market size (units)11,000 Budgeted.
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14) Compare and contrast process costing and job order costing. 15) The president of the Gulf Coast Refining Corporation wants to know why his golfing partner, who is the chief financial officer of a large construction company, calculates his costs by the job, but his own corporation calculates costs by large.
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55) Bob's Appliances manufactures industrial dryers and washers. During February the following data are available: DryersWashers Actual units sold10,00040,000 Budgeted sales 8,82033,180 Actual selling price $700$900 Budgeted selling price $710$930 Budgeted market share 25%24% Actual market share 20%25% Budget cont. margin /unit $275$375 Required: Determine the following: a.Sales-mix and sales-quantity variances b.Market-share and market-size variances (for calculation purposes round.
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13) Handy-Man Services is a repair-service company specializing in small household jobs. Each client pays a fixed monthly service fee based on the number of rooms in the house. Records are kept on the time and material costs used for each repair. The following profitability data apply to five customers: Customer.
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10) The data for a paint manufacturing company for February are as follows: LitresList                        Customer-specific SoldPriceCosts Customer 150,000$9.00$20,000 Customer 255,000$9.00$20,000 Customer 320,000$9.00$9,000 Customer 415,000$9.00$4,000 Customer 540,000$9.00$19,000 Price discount policy: $0.25 discount per gallon in excess of 20,000 gallons (up to 40,000) $0.35 discount per gallon in excess of 40,000 gallons Required: Prepare a report showing the customer-specific contribution. Present one.
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21) What is the STP total static-budget variance for revenues? A) $50 favourable B) $250 favourable C) $50 unfavourable D) $250 unfavourable E) $800 unfavourable 22) What is the STP total flexible-budget variance for revenues? A) $50 favourable B) $50 unfavourable C) $900 favourable D) $800 favourable E) $250 unfavourable 23) What is the STP total sales-volume variance (contribution margin) for May? A).
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11) The stand-alone revenue allocation method is a weighted-average method. 12) The incremental revenue-allocation method uses product specific information pertaining to products in the bundle to determine the weights used to allocate the bundled revenues to those individual products. 13) The first-ranked product is termed the incremental product in the incremental.
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42) The following production-cost worksheet has been prepared for the month of December for Ag Chemical. Production-Cost Worksheet Weighted-Average Method of Process Costing Ag Chemical December, 2016 CostsTotalsDirect Materials  Conversion Work in process, beginning$36,000$12,000$24,000 Costs added during period114,00040,00074,000 Total costs to account for$150,000$52,000$98,000 Divided by equivalent units20,00014,000 Equivalent unit costs $9.60$2.60$7.00 Assignment of costs: Costs transferred out (12,000 × $9.60)$115,200 Work.
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16.3   Calculate and interpret four levels of contribution margin variance analyses. 1) The static-budget variance for revenues is the difference between the actual revenues and the budgeted revenues from the static budget. 2) The sales-mix variance is the difference between two amounts: (1) the budgeted amount based on actual quantities sold of.
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17.4   Analyze weighted-average, FIFO, and standard-costing methods of inventory valuation of cost of goods manufactured and transferred out. 1) The first-in, first-out process-costing method computes unit costs by confining equivalent units to work only done during the current period. 2) Process-costing systems using standard costs usually accumulate actual costs separately from the.
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21) How many actual units remain in ending work-in-process, assuming a FIFO cost flow assumption? A) 200,000 units B) 150,000 units C) 100,000 units D) 50,000 units E) 25,000 units 22) Calculate equivalent units for conversion costs using the FIFO method. A) 401,500 units B) 350,000 units C) 300,000 units D) 292,500 units E) 170,000 units 23) Calculate equivalent units for direct.
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17) Trundle Ltd. produces two main products, J and K; and, a byproduct, L. There were no beginning inventories. During April, it incurred $275,000 of joint costs, which are allocated to main products using the physical output method. Additional information follows: UnitsUnitsUnit Sales ProductProducedSoldPrice J              12,000              9,600              $22 K              18,000              15,300              38 L              6,000              5,200             .
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46) Jordana Woolens is a manufacturer of wool cloth. The information for March is as follows: Beginning work in process 10,000 units Units started 20,000 units Units completed 25,000 units Beginning work-in-process direct materials $ 6,000 Beginning work-in-process conversion $ 2,600 Direct materials added during month $30,000 Direct manufacturing labour during month $12,000 Factory overhead $ 5,000 Beginning work in process was half converted as to.
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17.3   Apply the weighted-average method of process costing to calculate the cost of goods manufactured and transferred out when there is both beginning and ending work-in-process inventory. 1) The final result of the process costing procedure is to compute the dollar amount of the credit to a work-in-process account and the.
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16.5   Analyze relevant profitability data and decide whether to drop or add customers or branches. 1) A policy of dropping any customer that is currently unprofitable will eliminate, in the short run, all of the costs assigned to it. 2) Analyzing whether to add or drop a customer is an application of.
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31) Using the incremental method, what amount of revenue will be allocated to Math Fun in the package that contains all three products? A) $24.12 B) $30.00 C) $22.80 D) $25.33 Answer the following question(s) using the information below: The Appliance Store sells a refrigerator and a freezer as a single package for.
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57) The Omega Corporation manufactures two types of vacuum cleaners: the ZENITH for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year are as follows: Static Budget          ZENITH    House-Helper        Total Number sold15,00060,00075,000 Contribution margin$3,750,000$12,000,000$15,750,000 Actual Results         ZENITH    House-Helper        Total Number sold16,50038,50055,000 Contribution margin$6,200,000$10,200,000$16,400,000 Required: Compute the sales-mix variance and the sales-quantity variance by type of vacuum.
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37) Max's DVD Store encounters revenue allocation decisions with its bundled product sales. Here, two or more of the DVDs are sold as a single package. Managers at Max's are keenly interested in individual product profitability figures. Information pertaining to its three bundled products and the stand-alone selling prices of.
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44) Calendar Time Company prints calendars. All direct materials are included at the inception of the printing process. There were 20,000 units in beginning inventory with a direct material cost of $1,000 in March. Direct materials totalled $26,000 for the month. work-in-process records revealed that 160,000 calendars were started in.
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41) Vita-Heath Company manufactures three different types of vitamins: vitamin C, vitamin B, and vitamin D. The company uses four operations to manufacture the vitamins: mixing, tabletting, encapsulating, and bottling. Vitamins C and B are produced in tablet form (in the tabletting department) and vitamin D is produced in capsule.
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14) Cedar Rapids Chemical placed 220,000 liters of direct materials into the mixing process. At the end of the month, 10,000 liters were still in process, 30% converted as to labour and factory overhead. All direct materials are placed in mixing at the beginning of the process and conversion costs.
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22) Clarke Industries collects information on two customers for the past year: LangleySoldar SupplyInc. Revenues$1,492,000$640,000 Cost of goods sold$1,164,000$486,000 Number of in-stock orders144 Number of out-of-stock orders1224 Clarke estimates the following activity-based costs: Cost of processing and delivering an in-stock order$1,200 Cost of processing and delivering an out-of-stock order$3,500 An in-stock order is an order for which all the.
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11) Which of the following assertions is TRUE concerning conversion costs? A) Direct labour costs are always included in conversion costs. B) The conversion period (for conversion costs calculation) can only include one operation. C) When conversion costs are estimated to be over 80% complete, then the cost-benefit constraint requires us to use.
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20) Helen Company processes 30,000 litres of direct materials to produce two products, Zander and Ifso. Zander, a byproduct, sells for $5 per litre, and Ifso, the main product, sells for $70 per litre. The following information is for July: Production Sales Beginning Inventory Ending Inventory Zander 5,500 4,950 0 550 Ifso 11,000 10,600 250 650 The manufacturing costs totalled $145,000; beginning inventory $3,000. Required: 1.Prepare a July income.
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11) The first-in, first-out method computes unit costs by A) dividing total units by units completed this period. B) confining equivalent units to the work completed during the current period only. C) the standard-costing method. D) separately identifying the conversion costs of beginning and ending inventories. E) adding opening inventory units to work-in-process units and.
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42) What is the difference between a weighted-average method of process costing and a first-in, first-out method of process costing? 43) Universal Industries operates a division in Brazil, a country with very high inflation rates. Traditionally, the company has used the same costing techniques in all countries so as to.
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20) Lynnwood Ltd. is reviewing two of its customers using ABC analysis. It has identified the following customer related activities and their rates: Activity Cost Driver Rate Sales # of visits $450 Order processing # of orders $125 Product handling # of units $12 Special shipping # of shipments $500 The company has the following information regarding Enbright Ltd. and Jackson Inc.: Activity Enbright Ltd. Jackson Inc. # of visits 9 6 #.
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40) Software For You encounters revenue allocation decisions with its bundled product sales. Two or more units of the software are sold as a single package. Managers at Software For You are keenly interested in individual product profitability figures. Information pertaining to its three bundled products and the stand-alone selling.
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16.4   Generate a customer profitability profile. 1) Customer-profitability analysis examines how individual customers, or groupings of customers, differ in their profitability. 2) Customer-specific costs are costs that are traceable or allocated to individual customers. 3) Customer retention likelihood is a qualitative customer value assessment. 4) Managers find customer-profitability analysis useful because it frequently highlights.
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17.5   Apply process-costing methods to report transferred-in costs. 1) Transferred-in costs are an allocated indirect cost in process costing. 2) Transferred in costs are costs which have been incurred in a preceding department. 3) An operation-costing system is a hybrid costing system, applied to batches of similar products. 4) Operation-costing captures the non-financial impact.
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39) Jackson Ltd. uses an automated process in its manufacturing operations. On September 1, the company had 15,000 units in beginning work in process which were 60% complete with respect to conversion. During the month of September, it started 100,000 into production. On September 30, there were 20,000 units in.
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60) Aromatic Coffee Inc.. sells two types of coffee, Colombian and Blue Mountain. The monthly budget for U.S. coffee sales is based on a combination of last year's performance, a forecast of industry sales, and the company's expected share of the U.S. market. The following information is provided for March: ActualBudget ColombianBlue.
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21) What amount of conversion costs are assigned to ending work-in-process for June at Father Time Clock Shop? A) $160,986.38 B) $137,993.63 C) $141,111.00 D) $188,148.00 E) $111,110.63 22) Process-costing systems separate costs into cost categories according to which factor(s)? A) physical units B) indirect labour C) fixed and variable costs D) standard costs E) direct materials, conversion costs, and in.
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11) The Zygon Corporation was recently formed to produce a semiconductor chip that forms an essential part of the personal computer manufactured by a major corporation. The direct materials are added at the start of the production process while conversion costs are added uniformly throughout the production process. June is.
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31) What is the total amount credited to the Townsend Company Work-in-Process account during the month of April? A) $1,875,000.00 B) $2,370,000.00 C) $1,999,687.50 D) $2,295,937.50 E) $450,000.00 32) What is the Townsend Company direct materials cost per equivalent unit during April? A) $1,250.00 B) $1,241.94 C) $575.00 D) $581.25 E) $900.00 $230,000 + $700,000 = $930,000 $930,000/1,600 units.
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35) Pet Products Company uses an automated process to manufacture its pet replica products. For June, the company had the following activities: Beginning work in process inventory 4,500 items, 1/4 complete Units placed in production 15,000 units Units completed 17,500 units Ending work in process inventory 2,000 items, 3/4 complete Cost of beginning work in process $5,250 Direct material costs,.
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17.2   Contrast the journal entries for a process-costing system when there is and when there is not ending work-in-process inventory using the weighted-average method of inventory valuation. 1) Production costs are divided into three classifications: administrative costs, direct materials, and conversion costs in process costing. 2) Process-costing journal entries and job-costing journal.
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Use the information below to answer the following question(s). John's Video Game Outlet encounters revenue-allocation decisions with its bundled product sales. Here, two or more of the video games are sold as a single package. Managers at John's are keenly interested in individual product-profitability figures. Information pertaining to its three bundled.
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  16.1   Select a method and allocate revenue from a product bundle to its distinct components. 1) Revenue allocation occurs where revenues can be identified with an individual product (service, customer, and so on) in an economically feasible (cost-effective) way. 2) Revenue tracing results in a more accurate assignment of revenues to products,.
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53) The Chair Company manufactures two modular types of chairs; one for the residential market, and the other for the office market. Budgeted and actual operating data for the past year are: Static BudgetActual Results Home OfficeHomeOffice Number of chairs sold 260,000140,000248,400165,600 Contribution margin$26,000,000 $11,200,000 $22,356,000$13,248,000 The industry volume for residential and office chairs.
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  17.1   Distinguish process- from job-costing allocation methods within the decision framework, and apply the weighted-average method of inventory valuation when the beginning work-in-process inventory is zero. 1) The primary difference between job costing and process costing is the extent of averaging used to compute unit costs of products or services. 2) Standard.
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