DeVry ACCT 346 Final Exam 1

Click on the link below for the solution:

https://devryfinalexams.com/products/acct-346-final-exam/
(TCO 1) The principle managers follow when they only investigate significant departures from the plan is commonly
known as
Student Answer:

small amounts dont matter

only materials and labor deserve attention
management by exception
exceptional costs yield exception results

2.

Question :

(TCO 1) Which of the following isnotlikely to be a fixed cost?

Student Answer:

Direct materials
Rent
Depreciation
Salary of the human resources director

3.

Question :

(TCO 2) Which of the following is not a manufacturing cost?

Student Answer:

Manufacturing overhead
Direct materials
Direct labor
Administrative expenses

4.

5.

6.

Question :

(TCO 2) An allocation base is

Student Answer:

a common characteristic that jobs share, which is used to spread the overhead costs
among the various jobs.
the minimum amount of overhead assigned to a job.
used to determine how many labor hours were needed to complete a job.
used to authorize the release of materials from the storeroom to the production area.

Question :

(TCO 3) Equivalent units are calculated by

Student Answer:

taking the units needed to complete the beginning inventory, adding unitsstarted and
taking the equivalent units in ending inventory
taking the units completed plus the equivalent units in ending inventory.
taking the total units to account for and subtracting equivalent units in ending
inventory
taking units started plus units transferred out.

Question :

(TCO 3) In the assembly department, all the direct materials are added at the
beginning of the processing. Beginning Work in Process inventory consists of 2,000
units with a direct materials cost of $31,860. During the period, 15,000 units are
started and direct materials costing $250,000 are charged to the department. If there
are 1,000 units in ending inventory, what is the cost per equivalent unit?

Student Answer:

$15.93
$15.63
$14.83

$16.58

7.

Question :

(TCO 4) Regression analysis

Student Answer:

uses all the available data points to estimate a cost equation

can be performed by many spreadsheet programs
provides an equation that can be used to estimate total costs at different levels
all of the above

8.

Question :

(TCO 4) The number of units that must be sold to exactly cover its fixed and
variable costs is the

Student Answer:

contribution margin
break-even point
relevant range
margin of safety

9.

Question :

(TCO 5) Which of the following is treated as a product cost in variable costing?

Student Answer:

Sales commissions
Administrative salaries
Fixed manufacturing overhead
Direct labor

10.

Question :

(TCO 5) If the number of units sold is less than the number of units produced

Stude
nt
Answ
er:

full costing and variable costing

will yield the same net income.
full costing will assign some fixed manufacturing overhead to the units in the
ending inventory.
net income will be higher under
variable costing than under full
costing.
inventory levels will decrease.

11.

Question :

Stude
nt
Answ
er:

(TCO 6) A contract which specifies that the suppler will be paid for the cost of
production as well as some fixed amount or percentage of cost is called a(n)
approved overrun.

cost-plus contract.
allocation plan.
indirect cost budget.

12.

Question :

(TCO 6) Which of the following is not generally true when a company compares
ABC and traditional costing?

13.

Question :

(TCO 7) Fixed costs that will be eliminated if a particular course of action is

undertaken are called

(TCO 7) Common costs

2.

Question :

(TCO 8) Target costing

Comments:

3.

Question :

(TCO 8) Which of the following are relevant in deciding whether to accept or reject
a special order?

4.

Question :

(TCO 9) Present value techniques

5.

Question :

(TCO 9) The internal rate of return

6.

Question :

(TCO 10) A method of budget preparation that requires all budgeted amounts to be
justified by the department, even if the amounts were supported in prior periods, is
called

7.

Question :

(TCO 10) Which budget is prepared first?

8.

Question :

(TCO 10) The standard cost is

9.

Question :

(TCO 10) In general, an unfavorable material variance arises from

10.

Question :

(TCO 10) The type of center that has responsibility for generating revenue as well as
controlling costs is a(n)

11.

Question :

(TCO 10) Responsibility accounting holds managers responsible for

12.

Question :

(TCO 10) Which ratio measures the rate earned on total capital provided by the
owners?

(TCO 1) Distinguish managerial accounting from financial accounting. Include a brief discussion of the differences in the
types of information provided to users as well as the differences of the users of the accounting information.

2.

Question :

(TCO 6)Booth Financial Services, LLChas tworevenue producing departments,

Financial Planningand Business Consulting. The accounting department is trying to
determine the best method to allocate $1,000,000of common costs (secretarial staff,
reception personnel, etc), either by salary or number of employees. Information on
the revenue departments are as follows:
Department
Employees
Salaries
Financial Planning
150 employees
$10,000,000
Business Consulting

50 employees

$5,000,000

(a) Allocate the $1,000,000 common costs to the two revenue departments using
both methods.
(b) Why are allocations called arbitrary?

3.

Question :

(TCO 10) Charlie Corp sells it products on both credit and cash basis.Monthly sales
are sold 20% for cash, 80% for credit.Credit sales are collected 40% in the month of
sale and 60% the following month. Sales for the first quarter are as follows:January
$100,000February $150,000
March $125,000
Compute cash collections for February.

4.

Question :

(TCO 2) Acme Fireworks uses a traditional overhead allocation based on direct labor
hours.For thecurrent year overhead isestimated at $1,000,000 and direct labor
hours are budgeted at 200,000 hours.Actual hours worked were 195,000 and actual
overhead was $978,000.(a) Compute the predetermined manufacturing overhead
rate.(b) Compute the applied manufacturing overhead.
(c) Compute the amount of over/under applied manufacturing overhead.

(TCO 9) An investment of $185,575 is expected to generate returns of $65,000 per year for eachof the next four
years.What is the investments internal rate of return?

2.

Question :

(TCO 4) Legal Docs Inc is a legal services firm that files incorporation papers for
small businesses.They charge $1,000 per application. This years income statement
shows the following:Sales $1,295,000Variable Expenses $1,023,000
Contribution margin $272,000
Fixed costs $250,000
Profit $22,000
Required:
(a) Compute the break-even point in units.
(b) Compute the contribution margin ratio.
(c) Compute the current margin of safety.
(d) How many applications must the company sell to make a profit of $350,000?

3.

Question :

(TCO 5) The following data has been taken from Air-Tite company in its first year
of business.Units produced 100,000Units sold 80,000
Units in ending inventory 20,000
Fixed manufacturing overhead $400,000

(a) Compute the amount of fixed manufacturing overhead that would be expensed in
the current year iffull absorptioncosting is used.
(b) Compute the amount of fixed manufacturing overhead that would be expensed in
the current year if variable costing is used.
(c) Compute the amount of fixed manufacturing overhead that would be included in
ending inventory under full absorption costing.

DeVry ACCT 346 Final Exam 1

Click on the link below for the solution:

https://devryfinalexams.com/products/acct-346-final-exam/