devry acct349 quiz week 1 2 and 3

1. Question
: (TCO 10) Which of the
following statements is true about overhead cost variance analysis using
activity-based costing?
Overhead cost variances are calculated for
output-unit level costs only.
Overhead cost variances are calculated for
variable manufacturing overhead costs only.
A 4-variance analysis can be conducted.

Activity-based costing uses input measures
for all activities, resulting in the inability to do flexible budgets needed
for variance analysis.

Question 2. Question
: (TCO 10) Sebastian Company,
which manufactures electrical switches, uses a standard cost system and carries
all inventories at standard. The standard manufacturing overhead costs per
switch are based on direct labor hours and are shown below:
Variable overhead (5 hours at $12 per direct manufacturing
labor hour) $ 60
Fixed overhead (5 hours at $15 per direct manufacturing
labor hour,
based on capacity of 200,000 direct manufacturing labor
hours per month) 75
Total overhead per switch $
135

The following information is available for the month of
December:
• 46,000
switches were produced, although 40,000 switches were scheduled to be produced.
• 225,000
direct manufacturing labor hours were worked at a total cost of $5,625,000.
• Variable
manufacturing overhead costs were $2,750,000.
• Fixed
manufacturing overhead costs were $3,050,000.
The total variable manufacturing overhead variance was

$10,000 F

$10,000 U

$110,000 U

$110,000 F

Question 3. Question
: (TCO 10) Sebastian Company,
which manufactures electrical switches, uses a standard cost system and carries
all inventories at standard. The standard manufacturing overhead costs per
switch are based on direct labor hours and are shown below:
Variable overhead (5 hours at $12 per direct manufacturing
labor hour) $ 60
Fixed overhead (5 hours at $15 per direct manufacturing
labor hour,
based on capacity of 200,000 direct manufacturing labor
hours per month) 75
Total overhead per switch $
135

The following information is available for the month of
December:
• 46,000
switches were produced, although 40,000 switches were scheduled to be produced.
• 225,000
direct manufacturing labor hours were worked at a total cost of $5,625,000.
• Variable
manufacturing overhead costs were $2,750,000.
• Fixed
manufacturing overhead costs were $3,050,000.
The fixed manufacturing overhead spending variance for
December was

$450,000 F

$400,000 F

$50,000 U

$775,000 F

Question 4. Question
: (TCO 10) The following
information is for Pappillon Corporation’s variable manufacturing overhead
costs last month: favorable flexible-budget variance of $3,000, unfavorable
efficiency variance of $2,500. The spending variance is

$500 favorable.

$5,500 unfavorable.

$5,500 favorable.

None of the above

Question 5. Question
: (TCO 10) Budgeted overhead
costs rates can be expressed as an amount per unit of output or per unit of
input.
True
False

Question 1. Question
: (TCO 6) Homogeneity is used to

develop cost pools in which the costs have
the same or similar cost-allocation base.
develop cost pools of similar amounts for
allocation purposes.

develop cost pools based on similarity of
origination costs to be allocated.
develop costs pools only for activity-based
costing.

Question 2. Question
: (TCO 6) Information about
price discounting can be useful in analyzing revenues of customers if

sales people are properly trained in sales
forecasting.

records in the information system are kept of
reductions in selling price below list price.
a strictly enforced company policy is in
place regarding volume-based price discounts.
sales people are on an incentive plan that is
based on revenues.

Question 3. Question
: (TCO 5) Natural Nutrients
Bakery of Southfield produces three flavors of cat morsels that have budgeted
and actual sales data for a bag of a dozen of its cat morsels as follows for
December 20XX.
Budgeted Data Actual Data
Tuna ChikBits ChezNips Tuna ChikBits ChezNips
Bags 7,200 4,800 4,000 10,800 3,600 7,200
CM per bag $2.50 $4.00 $5.00 $2.00 $3.00 $7.50
Cont. Margin $18,000 $19,200 $20,000 $21,600 $10,800 $54,000
Total Contribution Margin $57,200
$86,400

According to company forecasts, it was budgeting to earn a
25% market share in total units (bags) of specialty prepared cat treats sold in
December 20XX in Southfield. Reliable industry sources indicate that the total
number of bags of cat treats sold for December 20XX in Southfield was 72,000.

The sales-quantity variance for December 20XX for Natural
Nutrients Bakery is

$3,600 F.

$20,200 F.

$20,020 F.

$29,200 F.

Points Received: 6 of 6
Comments:

Question 4. Question
: (TCO 6) Natural Nutrients
Bakery of Southfield produces three flavors of cat morsels that have budgeted
and actual sales data for a bag of a dozen of its cat morsels as follows for
December 20XX.
Budgeted Data Actual Data
Tuna ChikBits ChezNips Tuna ChikBits ChezNips
Bags 7,200 4,800 4,000 10,800 3,600 7,200
CM per bag $2.50 $4.00 $5.00 $2.00 $3.00 $7.50
Cont. Margin $18,000 $19,200 $20,000 $21,600 $10,800 $54,000
Total Contribution Margin $57,200
$86,400

According to company forecasts, it was budgeting to earn a
25% market share in total units (bags) of specialty prepared cat treats sold in
December 20XX in Southfield. Reliable industry sources indicate that the total
number of bags of cat treats sold for December 200X in Southfield was 72,000.

The market-share variance for December 20XX for Natural
Nutrients Bakery is

$20,020 F.

$12,870 F.

$11,600 F.

$11,440 F.

Question 5. Question
: (TCO 6) Fulbrite Fashions
sells a line of women’s dresses. Fulbrite’s performance report for November is
shown below. The company uses a flexible budget to analyze its performance and
to measure the effect on operating income of the various factors affecting the
difference between budgeted and actual operating income.
Actual Budget
Dresses sold 5,000 6,000
Sales $235,000 $300,000
Variable costs (145,000) (180,000)
Contribution margin $
90,000 $120,000
Fixed costs (84,000) (80,000)
Operating income $ 6,000 $
40,000
The effect of the sales quantity variance on Fulbrite’s
contribution margin for November is

$30,000 unfavorable.

$18,000 unfavorable.

$20,000 unfavorable.

$15,000 unfavorable.

Question 1. Question
: (TCO 1) A mixed cost function
has a constant component of $20,000. If the total cost is $60,000 and the
independent variable has the value 200, what is the slope coefficient?

Student Answer: $200

$400

$600

$40,000

Points Received: 6 of 6
Comments:

Question 2. Question
: (TCO 1) Companies that take
advantage of quantity discounts in purchasing their materials have

decreasing cost functions.

linear cost functions.

nonlinear cost functions.

stationary cost functions.

Comments:

Question 3. Question
: (TCO 3) The best opportunity
for cost reduction is

: during the manufacturing phase of the value
chain.

during the product/process design phase of
the value chain.

during the marketing phase of the value
chain.

during the distribution phase of the value
chain.

Question 4. Question
: (TCO 3) Each month, Haddock
Company has $275,000 total manufacturing costs (20% fixed) and $125,000
distribution and marketing costs (36% fixed). Haddock’s monthly sales are
$500,000. The markup percentage on variable costs to arrive at the existing
(target) selling price is

20%.

40%.

80%.

66.666%.

$200,000/$300,000 = 66 2/3%

Question 5. Question
: (TCO 3) Which of these do
antitrust laws on pricing not cover?

: Collusive pricing

Dumping

Peak-load pricing

Predatory pricing

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