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Study Resources (Accounting)

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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40) Using the sales value at splitoff method, the joint costs allocated to Jarlon would be A) $289,520. B) $115,808. C) $405,328. D) $110,480. E) $154,672. 41) Using the sales value at splitoff method, the joint costs allocated to Kharton would be A) $289,520. B) $115,808. C) $110,480. D) $154,672. E) $405,328. 42) Using the physical measures method, the joint costs allocated.
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31) Cost of moulding plastic for use in making different toys on an assembly line. Diff: 1    Type: MA Skill:  Understand Objective:  LO 15-1 32) Cost of processing water into different sized bottles for human consumption. Diff: 1    Type: MA Skill:  Understand Objective:  LO 15-1 33) Cost of processing pulp into paper. Diff: 1    Type: MA Skill:  Understand Objective:  LO 15-1 Answers:.
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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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Use the information below to answer the following question(s): Orange Paper Company processes wood pulp into two products. During February the joint costs of processing were $156,000. Production and sales value information for the month were as follows: Sales Value at Product    Kilograms Produced   splitoff Point   Separable Costs Paper180,000$30,000$232,000 Cardboard132,00020,000277,000 Paper sells for $2.85 a kilogram and cardboard.
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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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11) Which of the following is NOT a strategy for costing inventory when joint-cost circumstances are involved? A) Allocate costs according to the market selling price. B) Allocate costs based on constant gross margin. C) Allocate costs according to a predetermined physical measure. D) Use the estimated net realizable value. E) Allocate costs according to.
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38) Purple Paper Company processes wood pulp into two products. During July the joint costs of processing were $50,000. Production and sales value information for the month were as follows: Sales Value at Product    Kilograms Produced   splitoff Point   Separable Costs Paper125,000$63,000$221,000 Cardboard96,00046,000262,000 Paper sells for $2.71 a kilogram and cardboard sells for $3.10 a kilogram. There were no.
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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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Use the information below to answer the following question(s). Raynor Manufacturing purchases trees from Tree Nursery and processes them up to the splitoff point, where two products (paper and pencil casings) are obtained. The products are then sold to an independent company that markets and distributes them to retail outlets. The.
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40) AllCanada Wire Products processes copper into wire. It makes 12 gauge and 14 gauge wire. During April the joint costs of processing the aluminium were $365,000. There were no beginning or ending inventories for the month. Production and sales value information for the month were as follows: Product      Feet        Separable Costs      Selling Price 14.
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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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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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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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  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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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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  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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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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43) Calamata Corporation processes a single material into three separate products A, B, and C. During September, the joint costs of processing were $300,000. Production and sales value information for the month were as follows: Product Units Produced Final Sales Value per Unit Separable Costs              A 10,000 $25 $125,000              B 15,000 30   250,000              C 12,500 24   125,000 Required: Determine 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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15.3   Evaluate two different market-cost methods to identify which is most appropriate. 1) The method of allocating joint product costs is an important guide for other management decisions. 2) The estimated net realizable value method allocates joint costs on the basis of the expected final sales value in the ordinary course of.
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54) Peachland Fruit Ltd. harvests blueberries. After harvest, the company sells some berries fresh, freezes others, and processes some into juice. During the summer the joint costs of processing the berry products were $620,000. Any separable costs for each product are negligible and are not traced. There were no beginning.
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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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15.5   Identify the strategic implications of a decision to implement one joint cost allocation method. 1) Different joint cost allocation methods will result in different product margin percentages for the individual products. 2) If managers make processing or selling decisions using incremental revenue/incremental cost approach, which of the following statements is TRUE? A).
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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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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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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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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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Answer the following question(s) using the information below: The Morton Company processes unprocessed goat milk up to the splitoff point where two products, condensed goat milk and skim goat milk result. The following information was collected for the month of October: Direct Materials processed: 65,000 litres (shrinkage was 10%) Production: condensed goat milk 26,100 litres skim.
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51) Sweet Sugar Company processes sugar beets into three products. During April the joint costs of processing were $240,000. Production and sales value information for the month were as follows: Sales Value at UnitsSplitoff Separable Product         Produced   Sales Value    Costs   Sugar12,000$80,000$24,000 Sugar syrup8,000$70,000$64,000 Fructose syrup4,000$50,000$32,000 Required: Determine the amount of joint cost allocated to each product if the sales value.
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15.4   Understand the irrelevance of joint costs in the sell or process further decision. 1) The amount of the joint costs is an important factor when considering to sell a product at the splitoff point or process it further. 2) All separable costs in joint cost allocations are always incremental costs. 3) When.
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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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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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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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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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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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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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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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20) What is the approximate portion of the joint costs that should be allocated to products X and Y, respectively, using a physical volume measure? A) $461,858 and $513,142 B) $487,500 and $487,500 C) $513,142 and $461,858 D) $529,285 and $445,715 E) $530,000 and $470,000 21) What is Product X's approximate production cost per unit using.
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15.6   Account for byproducts using two different methods. 1) Byproducts are recognized in the general ledger either at the time of production or at the time of sale. 2) Processes that yield joint products always yield byproducts as well. 3) Byproduct revenues appear in the income statement as a cost increase to the.
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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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30) Advantages of the sales value at splitoff method include all of the following EXCEPT A) it does not presuppose an exact number of subsequent steps for further processing. B) it uses a meaningful denominator. C) there is no anticipation of subsequent management decisions. D) it is simple. E) the allocation of joint costs could.
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15.2   Analyze the physical measure and sales value at splitoff methods to allocate joint costs. 1) The cause-and-effect criterion is not present when joint costing is used. 2) It is easier to cost inventory if the joint products are sold before the splitoff point without further processing. 3) The sales value at.
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36) Red Paper Company processes wood pulp into two products. During March the joint costs of processing were $144,000. Production and sales value information for the month were as follows: Sales Value at Product    Kilograms Produced   splitoff Point    Separable Costs Paper130,000$80,000$224,000 Cardboard108,000 70,000 264,000 Paper sells for $2.75 a kilogram and cardboard sells for $3.50 a kilogram. There.
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