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ACC 241 Exam 1 & 3 Review 80 Questions with Verified Answers,100% CORRECT
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ACC 241 Exam 1 & 3 Review 80 Questions with Verified Answers
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ACC 241 Exam 1 & 3 Review 80 Questions with VerifiedAnswers
Which of the following is not an objective of Management Accounting? - CORRECT
ANSWER to prepare external reports for investors, creditors, government
agencies, and other outside users
Which of the following is an example of a manufacturing overhead expense (an
indirect product cost) in a factory? - CORRECT ANSWER Wages of factory
maintenance personnel
Indirect manufacturing costs should be included in manufacturing overhead -
CORRECT ANSWER True
Alexandra Corporation had actual manufacturing overhead costs for the most
recent year of $27,500. Manufacturing overhead is allocated using a
predetermined manufacturing overhead rate of $1.75 per direct labor hour.
Direct labor cost is $18 per hour. At the end of the year, Alexandra Corporation
found it had overallocated manufacturing overhead by $1,000. How much
manufacturing overhead was allocated in total during the year? - CORRECT
ANSWER 28,500
When work-in-process inventories increase during the period (the ending balance
is greater than the beginning balance), what can be said of the relationship
between total manufacturing costs and COGM? (Assume no change in per unit
costs.) - CORRECT ANSWER Total Manufacturing Costs are greater than COGM
Actual and normal costing are similar in their accounting for - CORRECT ANSWER
Direct material and direct labor costs
The firm produces highly diverse products
Non-unit-level costs are a high proportion of total overhead cost
,Machine setups are an example of batch-level costs. As the number of units in a
batch increases, the cost per unit will generally - CORRECT ANSWER Decrease
Which of the following is a variable cost? - CORRECT ANSWER A cost that is
$20,000 when production is 50,000, and $28,000 when production is 70,000
Assume "A" is a fixed cost and "B" is a variable cost. During the current year the
level of activity has decreased, but is still within the relevant range. We would
expect that: - CORRECT ANSWER The cost per unit of B has remained unchanged
Some management accounting experts argue that manufacturing costs are not
inherently fixed or variable, but rather a function of the manner in which they are
contracted. An example of a cost that is traditionally classified as a fixed cost but
behaves as a variable cost is: - CORRECT ANSWER Depreciation expense that is
based on the number of units
Manufacturing overhead costs for Ben Furniture Company totaled: - CORRECT
ANSWER Depreciation on factory equipment + Factory supervisor salary +
Lubricants + Insurance costs + Wages paid to factory workers + Utilities in factory
16,000 + 52,500 + 3,000 + 21,000 + 115,000 + 44,500
= $252,000
Planning, directing, and controlling are a manager's three primary responsibilities
- CORRECT ANSWER True
In a manufacturing firm, manufacturing costs and product costs are the same
T/F - CORRECT ANSWER True
If the finished goods inventory decreases between the beginning and the end of a
period, then the cost of goods manufactured for the period is larger than the cost
of goods sold
T/F - CORRECT ANSWER False
, A plantwide overhead rate is calculated by dividing the estimated total
manufacturing overhead costs for the year by the estimated total amount of the
allocation base for the year
T/F - CORRECT ANSWER True
Choosing the method of allocating costs to products (plantwide vs ABC) can have
an impact on the total manufacturing costs
T/F - CORRECT ANSWER False
Traditional overhead allocation methods that use unit-based cost drivers are
never accurate
T/F - CORRECT ANSWER False
Cost distortion occurs when products are overcosted while other products are
undercoated by the cost allocation system - CORRECT ANSWER True
As output decreases, fixed costs per unit will also decrease - CORRECT ANSWER
False
The relevant range is the range of activity for which the assumed cost
relationships are valid - CORRECT ANSWER True
Claire Corporation allocates (applies) Overhead based on direct labor hours. Here
is selected data from the Jacob Corporation:
Estimated MOH = $500,000
Actual MOH = $480,000
Estimated Direct Labor hours = 50,000
Actual DL hours = 55,000
Since actual MOH is $20,000 less than estimated MOH, then overhead must have
been over-allocated by $20,000 - CORRECT ANSWER False
Applied Overhead = $500,000
Est. MOH / 50,000 Est. DLH = $10/DLH
(PDOR)$10 PDOR * 55,000 actual DLH = $550,000 Applied
Actual MOH - Applied MOH $480,000 - $550,000 =
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