ACCT 505 Managerial Accounting Final Exam

ACCT 505 Managerial
Accounting Final Exam

1.(TCO A) Wages paid to the
factory maintenance supervisor are considered an example of: (Points : 5)
2.(TCO A) Rent on a
manufacturing plant is an element of: (Points : 5)
3.(TCO B) Evergreen Corp.
has provided the following data:
Sales per period 1,000 units
Selling price $40 per unit
Variable manufacturing cost $12 per unit
Selling expenses $5,100 plus 5% of selling price
Administrative expenses $3,000 plus 20% of selling price
The number of units needed to achieve a target net operating income of $63,900
would be: (Points : 5)
4.
(TCO
B) Garth Company sells a single product. If the selling price per unit and the
variable expense per unit both increase by 10% and fixed expenses do not
change, then: (Points : 5)

5. (TCO E) Rebel Company manufactures a
single product and has the following cost structure: Variable costs per unit:
Production…………………………………………. $5
Selling and administrative……………………… $3
Fixed costs in total:
Production…………………………………………. $32,000
Selling and administrative……………………… $16,000
Last year there were no beginning inventories, 8,000 units were produced, and
7,800 units were sold.
Under
variable costing, the unit product cost would be: (Points : 5)

6.
(TCO
F) Vagon Corporation has provided data concerning the company’s Manufacturing
Overhead account for the month of September. Prior to the closing of the
overapplied or underapplied balance to Cost of Goods Sold, the total of the
debits to the Manufacturing Overhead account was $76,000 and the total of the
credits to the account was $86,000. Which of the following statements is true?
(Points : 5)

7.
(TCO
G) The net present value (NPV) method of investment project analysis assumes
that the project’s cash flows are reinvested at the: (Points : 5)

8.
(TCO
G) Logan Company is considering two projects, A and B. The following
information has been gathered on these projects:
Project A Project B
Initial investment
needed………………………………….$40,000 $60,000
Present value of future cash
flows………………………………………60,000 85,000
Useful
life………………………………………….4 years 4 years
Based on this information, which of the following statements is (are) true?
I. Project A has the highest ranking according
to the profitability index criterion.
II. Project B has the highest ranking according to the net present value
criterion. (Points : 5)

9.
(TCO
B) Variable expenses for Alpha Company are 40% of sales. What are sales at the
break-even point, assuming that fixed expenses total $150,000 per year: (Points
: 5)

10.
(TCO
F) Elliott Company uses a predetermined overhead rate based on machine-hours to
apply manufacturing overhead to jobs. The company manufactures tools to
customer specifications. The following data pertain to Job 1501:
Direct
materials used: $4,200
Direct
labor hours worked: 300
Direct
labor rate per hour: $8.00
Machine
hours used: 200
Predetermined
overhead rate per machine hour: $15.00
What
is the total manufacturing cost recorded on Job 1501? (Points : 5)

11.
(2.1)(TCO
C) The following overhead data are for a department of a large company.

12.
(2.2)(TCO
D) Mr. Earl Pearl, Accountant for Margie Knall, Inc. has prepared the following
product-line income data:……….

11. (2.3)(TCO E) Duif
Company’s absorption costing income statement for the last year of operations
is presented below:……….

12. (2.4) (TCO A) The
following data (in thousands of dollars) have been taken from the accounting
records of Karmana Corporation for the just completed year…….

13.
(3.1)(TCO
F) Maverick Corporation uses the weighted-average method in its process costing
system. Data concerning the first processing department for the most recent
month are listed below: Work in process, beginning:……….
14.
(3.2)(TCO
F) Cavalerio Corporation uses the weighted-average method in its process
costing system. This month, the beginning inventory in the first processing
department consisted of 700 units. The costs and percentage completion of these
units in beginning inventory were:
15. (3.3)(TCO
G) (Ignore income taxes in this problem.) Five years ago, the City of Paranoya
spent $30,000 to purchase a computerized radar system called W.A.S.T.E.
(Watching Aliens Sent To Earth). Recently, a sales rep from W.A.S.T.E. Radar
Company told the city manager about a new and improved radar system that can be
purchased for $50,000. The rep also told the manager that the company would
give the city $10,000 in trade on the old system. The new system will last 10
years. The old system will also last that long but only if a $4,000 upgrade is
done in 5 years. The manager assembled the following information to use in the
decision regarding which system is more desirable: