Week 2 Quiz

. (TCO 2) Bubbas Crawfish functioninging ac lodge uses a traditional smash-up apportionment based on draw delve hours. For the current year operate(a) expense is estimated at $2,250,000 and direct fag out hours are budgeted at 415,000 hours. unquestionable operating cost was $2,200,000 and actual direct apprehend hours make believeed were 422,000. (a) Calculate the pre regulated overhead swan. Rate, based on budgeted factory overhead speak to and budgeted drill, that is established before a point begins. 2,250,000/415,000Budgeted activity units utilise in the denominator of the formula, more than often called the denominator level, are heedful in direct fatigue-hours, machine-hours, direct labor movement cost, or performance units. Read more http//www. practises. com/topic/predetermined-overhead- sum upixzz2NxCv9pKK (b) Calculate the overhead applied. utilize overhead = predetermined overhead come out x actual direct labor (c) Determin Prorate the overhe ad variance to the trance themes 765 750 = variance of 15K Rate This Answer e the amount of overhead that is over/ low applied. 2. TCO 2) Thibodeaux Limousine Corporation is trying to determine a predetermined manufacturing overhead. Estimated overhead for the future year is $776,000. Budgeted machine hours are 105,000 hours, and budgeted labor hours are 17,500 hours at a rate of $10. 00 per hour. Compute the predetermined overhead rate based on (a) Direct labor dollars Labor rate variance = (Actual hours worked ? Actual rate) ? (Actual hours worked ? Standard rate) Read more at http// method of accounting4management. com/direct_labor_rate_variance. htmpqUTOT7ClOOtMr4F. 99 (b) Direct labor hours (c) mold hours 3. TCO 1) List and briefly describe tetrad of the five differences mingled with managerial accounting and financial accounting 4. (TCO 2)The chase knowledge is acquirable for Sappys running(a) Shears for the m angiotensin-converting enzymetary year decision Decemb er 31, 20XX. counter symmetry brace in accurate Goods $ 17,000 finishing correspondence in finished Goods 15,200 Beginning balance in take in function 2,500Ending balance in cook in Process 1,836 Selling expenses 123,000 common and administrative expenses 89,000Direct satisfying cost 54,500 Direct labor cost 66,000 Manufacturing overhead 21,400 Sales 385,000 Prepare a schedule of cost of goods manufacture. . (TCO 2) Match each(prenominal) of the following six terms with the idiomatic expression that most nigh describes it. Each answer beneath may be used only once.Read also screen Week 42. ______ 1. activity-based costing ______ 2. cost of goods available for sale ______ 3. block be ______ 4. attend to costing brass ______ 5. just-in-time system ______ 6. work in process A) follows depute to the goods produced also known as manufacturing be (B) Materials cost that are not traced instantaneously to products produced (C) System that seeks to minimize Raw Materi als memorandum and Work in Process history (D) apostrophize of items that are entire and transferred from Work in Process blood to Finished Goods Inventory (E) be that are determine with accounting periods rather than with goods produced (F) Actual overhead is greater than overhead that has been applied to products (G) manner of assigning overhead costs that uses four-fold allocation bases (H) System that uses job-order sheets to collect costs for each individual job (I) Cost of all squares and parts that are flat traced to the items produced (J) Beginning balance in the Finished Goods Inventory plus cost of goods manufactured (K) Overhead applied to products is greater than the actual overhead costs incurred (L) Used by companies that produce large quantities of identical items (M) Cost of all manufacturing activities other than direct material and direct labor (N) Inventory account that contains the cost of goods that are only partly unblemished 6. (TCO 2) Far Out Cer amics akes springer macaroni tile and applies job-order costing. The following in doion relates to the fiscal year ending December 31,20XX. Beginning balance in Raw Materials Inventory $ 12,500 Purchases of raw material 189,000 Ending balance in Raw Materials Inventory 14,300Beginning balance in Work in Process 24,500 Ending balance in Work in Process 23,100Direct labor cost 89,700 Manufacturing overhead applied 66,200 Actual manufacturing overhead 64,100Beginning balance in Finished Goods 28,900 Ending balance in Finished Goods 24,300Sales 432,000Selling expenses 120,000 General and administrative expenses 86,000 How much is cost of goods exchange? 7. TCO 2) Match each of the six following terms with the phrase that most closely describes it. Each answer may be used only once. _____ 1. Direct costs _____ 2. Fixed costs _____ 3. Incremental costs _____ 4. Economic Resource Planning system _____ 5. Noncontrollable costs _____ 6. Opportunity costs (A) be that increase or decrease i n total in response to increases or decreases in the level of subscriber line activity (B) be that are directly attributable to a product, activity, or department (C) Costs that a manager dissolve find (D) The difference in costs between decision alternatives (E) Costs incurred in the noncurrent that are not relevant to play decisions (F) Costs that cannot be influenced by a manager G) Financial plans prepared by management accountants (H) Value of the benefits foregone when one decision alternative is selected over another(prenominal) (I) Costs that cannot be directly traced to a product, activity, or department or are not worth tracing (J) Costs that do not change in total with changes in the level of business activity (K) These systems prepare a maitre dhotel production systems and all the support across the company. (L) Allows companies and suppliers to share information to improve competency in getting inputs. (M) Allows customer selective information analysis and sup port, often in online format for customers. 8. (TCO 3) The Marinade Department began the period with 150,000 units.During the period the department received another 180,000 units from the previous department and at the end of the period 112,000 units remained which were 17%complete. How much are equivalent weight units in The Marinade Departments work in process chronicle at the end of the period? (TCO 3) The Franc Zeppo adventure manufactures a product that goes through dickens processing departments. Information relating to the activity in the first department during April is given below Work in process, April 1 50,000 units (80% immaculate for materials and 60%completed for conversion. Work in process, April 30 45,000 units (70% completed for materials and 60%completed for conversion. 4. The department started 380,000 units into production during the month and transferred 385,000 completed units to the next department.Compute and calculate the equivalent units of production f or the first department for April, assuming the company uses the weighted- average out method of accounting for units and costs. 1. Question (TCO D) A company that has a profit can increase its return on enthronisation by Student Answer increase sales taxation and operating expenses by the uniform dollar amount. increasing average operating assets and operating expenses by the same dollar amount. increasing sales revenue and operating expenses by the same percentage. change magnitude average operating assets and sales by the same percentage. instructor rendering Chapter 12 2. Question (TCO D) minded(p) the following data, what would ROI be?Sales $50,000 Net operating income $5,000 voice margin $20,000 fair(a) operating assets $25,000 Stockholders uprightness $15,000 Student Answer 10% 20% 16. 7% 80% Instructor Explanation See Chapter 12. ROI = Net operating income / fair operating assets = $5,000 / $25,000 = 20. 0% 3. Question (TCO D) Given the following data What is t he return on the investment (ROI)? Sales $50. 000 Net operating income $5,000 Contribution margin $20,000 Average operating assets $25,000 Stockholders equity $15,000 Student Answer 10% 20% 16. 7% 80% Instructor Explanation ROI = Net operating income / Average operating assets = $5,000 / $25,000 = 20. 0%