California Lutheran University

State Farm Exam 1 COMPLETE GUIDE 2023 SCORED 100%

1. Batch-level activities are performed each time a batch of goods is processed. The cost of a batch-level activity is proportional to the number of units in the batch. FALSE 2. Activity-based costing involves a two-stage allocation process in which overhead costs are first assigned to departments and then allocated to products using activity measures. FALSE 3. In the second-stage allocation in activity-based costing, overhead costs are allocated from activity cost pools to products. TRU...

109 . At what purchase price for the wheels would Talbot be indifferent between making or buying the wheels? A. $1.70 per wheel B. $1.60 per wheel C. $1.55 per wheel D. $1.15 per wheel The company would be indifferent at a price of $1.60 per wheel ($160,000 ÷ 100,000 wheels). AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 3 Hard Learning Objective: 12-03 Prepare a make or buy analysis. Rama Corporation is presently making part J56...

105. The wages and salaries in the planning budget for May would be closest to: A. $18,34 4 B. $18,60 6 C. $18,72 0 D. $18,93 6 Cost = Fixed cost + (Variable cost per unit × q) = $3,600 + ($5.40 × 2,800) = $18,720 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 09-01 Prepare a flexible budget. 106. The administrative expenses in the planning budget for May would be closest to: A. $7,02 6 B. $6,92 7 C. ...

42. Lynne Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $480 per month plus $91 per job plus $14 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in June to be 10 jobs and 79 meals, but the actual activity was 14 jobs and 77 meals. The actual cost for catering supplies in June was ...

206 . Ivancevic Inc., which produces a single product, has provided the following data for its most recent month of operation: The company had no beginning or ending inventories. Required: Compute the unit product cost under variable costing. Show your work! 207 . Sproull Inc., which produces a single product, has provided the following data for its most recent month of operation: The company had no beginning or ending inventories. Required: a. Compute the unit product cost under ab...

74. Sanes Corporation produces and sells a single product. Data concerning that product appear below: The unit sales to attain the company's monthly target profit of $19,000 is closest to: A. 3,42 6 B. 5,83 3 C. 3,80 6 D. 2,15 8 75. A product sells for $10 per unit and has variable expenses of $6 per unit. Fixed expenses total $45,000 per month. How many units of the product must be sold each month to yield a monthly profit of $15,000? A. 6,000 units B. 3,750 units C. 15,000 ...

105. The wages and salaries in the planning budget for May would be closest to: A. $18,34 4 B. $18,60 6 C. $18,72 0 D. $18,93 6 Cost = Fixed cost + (Variable cost per unit × q) = $3,600 + ($5.40 × 2,800) = $18,720 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 09-01 Prepare a flexible budget. 106. The administrative expenses in the planning budget for May would be closest to: A. $7,02 6 B. $6,92 7 C. ...

42. Lynne Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $480 per month plus $91 per job plus $14 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in June to be 10 jobs and 79 meals, but the actual activity was 14 jobs and 77 meals. The actual cost for catering supplies in June was ...

19. The first-stage allocation in activity-based costing is the process by which overhead costs are assigned to activity cost pools. TRUE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: 07-02 Assign costs to cost pools using a first-stage allocation. 20. Activity-based costing involves a two-stage allocation in which overhead costs are first assigned to departments and then to jobs. TRUE AACSB: Refle...