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Managerial Accting U

Managerial Accounting WGU UFC1

QuestionAnswer
Which feature of managerial accounting improves a company’s ability to plan and control operations? It generates detailed information on product cost.
Which statement describes period costs? They flow directly to the current income statement as expenses.
A company has the following costs associated with a job: Direct materials: $400 Direct labor: $450 Work in process: $950 Revenue from job: $1,450 What is the amount of overhead applied to this job? $100
Management wants to assess how many units must be sold to earn a profit. The most useful analysis will separate costs into which categories? Fixed and variable
A mnfcting company budgeted for $1,240,000 in manufacturing overhead and expected 400,000 direct labor hours. Actual overhead was $1,200,000, and actual direct labor hours were 390,000. Was manufacturing overhead over- or underapplied and by how much? Overapplied by $9,000
Cost of goods mnfctrd equals $87,000 for the year. Finishd goods inventory is $10,000 at the beginning of the yr & $4,000 at the end of the yr. Beginning & ending WIP are $4,000 and $5,000, respectively. How much is cost of goods sold for the year? $93,000
a company’s prdctn activities forOct: Est Amts Acl Amts Cost of direct labor$18,500 $19,000 Cost of mfctrng overhead$22,000 $24,000 Direct labor hours900 920 Using direct labor hours as the allocationbase, what is the prdtrmnd overhead rate? $24.44 per direct labor hour
The following amounts were reported by a company before adjusting its overapplied manufacturing overhead of $48,000: Cost of goods sold $730,000 Applied overhead $368,000 Actual overhead $320,000 What is the company’s cost of goods sold? $682,000
mnfcg op of a co had bal for the yr: Bg Bal Eg Bal Raw materials$84k $91k WIP $45k $59k Finished goods $28k 23k The co tsfrd $918k of cmpltd goods out of WIP during the yr. The overhd is undrapld by $3000. What is the adjd cost of gds sold for the yr? $926,000
Eqvt units4mtrls 10k Mtrl csts for units in beg inv $20k Mtrl csts for units started dur the per $80k Cnvrsn csts 4 units in beg inv $30k Cnvrn csts 4units strtd dur the per $80k Wht is cst per eqvlnt unit4mtrls if weighted ave cost mthd is used $10
What is the emphasis of activity-based costing systems? Individual activities
Which common activity cost pool is driven by number of units produced? Units assembled
ABCsystm cmpsd 3prcs: tooling, processing, and resources. firm ttls 4m its costSystmDriver qnty25 stups20k direct labor hrs40k sq. ft. Costs/pool$500k$2mil$800k Prdct D us 3 setups, 3kdrct labor hrs &8,000 sqreft.total ovrhd cst tht shd B assignd 2Prdct D $520,000
What are the relevant costs in the managerial decision-making process? Opportunity costs
Which cost behavior pattern is depicted in the graph above? see question 15 Variable costs
What would be the total contribution margin reported on this retailer’s contribution format income statement? $300,000
merch co rprtd the following rslts 4yr #units sold 1k Selling price /unit$400 Variable manufacturing csts/unit$120 Variable selling cost per unit$90 Total fxd selling csts$10kVari admin cst /unit $50Fixed admin costs$30k What is the contribution margin? $140,000
A company sells a product for $18 per unit. The variable cost is $6 per unit. The company has fixed costs of $42,000. How many units must it sell in order to break even? 3,500
A co reports the following annual info for a product Sales price$48 per unit Variable costs$15 per unit Fixed costs$150k Units produced and sold30k unitsIf the sales price is increased to $50/unit & nothing else changes, how mch will net income increase? $60,000
A company reports the following annual information for its single product: Sales price $48 per unit Variable costs $15 per unit Fixed costs $150k Units produced and sold 30k If fixed costs decreased to $120k, what is the breakeven point in units? 3,637 units
Why does direct labor cost affect the make-or-buy decision? It is a variable cost.
Last yr, a co spent $25 per unit to make widgets. This year, however, the cost has increased to $40 per unit. The co has recently learned it can buy widgets for $38 per unit. Which differential cost should be considered for this make-or-buy decision? $2 per unit
A company manufactures bird feeders, which they normally sell for $30 each. The company compiles the following information relating to the production of the bird feeders: What is the minimum price per unit that the company should charge for this order? $18
csts$6 of vrbl csts toprduce 1 flg, wch nrmaly sels fr$20. cst ofrs 2prchs30k flgs@$10ech. co wld incr spcal shpg csts of $1 /flag if acptd. co has sufcnt unusd cap 2prdce 30k flags. co is curntly prftbl. If spcial ordr acptd, wht wil B incrse in nt incm $90,000
A company is deciding whether equipment currently in use should be replaced by new equipment. Which information is relevant to this decision? The cost of the new equipment
Should the company eliminate or keep the segment? (Q26) Keep the segment since eliminating it will result in a $4,575 reduction in net income compared to the existing business
co has the cap to produce 20k units of product/yr. It is crntly only prdcing 13k units/yr, with sellprice of $70/unit. A cust placd a spcial ordr for 6,500 units@$62/unit. incremental cst of acptg the spcial ordr is $382k. Shd co acept the spcial ordr? Yes, because the incremental contribution margin would be $21,000
A company has inventory that cost $50,000. Its scrap value is $65,000. The inventory could be sold for $150,000 if manufactured further at an additional cost of $80,000. What should this company do? Manufacture further and sell it for $150,000
co produces a product that crntly costs $8 in variable costs &$2 fixed costs. It sells product for $14. If processed further, the co will spnd an addl $6 variable costs &$2 in fixed costs. Ech unit wod then be sold for $24.Why wod co choose to prces fthr? Incremental profit will be $2/unit
How can a reliable budgeting system be identified? It provides for effective planning and control.
A cohas the flwing budgeted sales: Ju$200kAug$300kSep$250k20% of sales R4 cash, &80% Ron crdit. 25% of the credit sales are collected in the month of sale, and 75% are collected the next month. What are the total expected cash receipts during September? $280,000
The budget committee of a manufacturer has just completed its sales budget. Which budget should be prepared next? Production budget
Which budget is the basis for all other budgets created in the budgeting process? Sales budget
The following is a list of budgets in the master budget: Balance sheet,Cash Direct material Direct labor Ending inventory Income statement Manufacturing overhead Production,Sales,General & administrative expense,Which type of budget includes depre Manufacturing overhead budget
Which budget is designed to evaluate changes in revenue and costs? Flexible budget
A budget committee for a merchandising firm has just completed its sales budget. The committee knows its budgeted beginning and ending inventory. Which additional item from the sales budget is needed to prepare the merchandise purchases budget? Expected sales
Which budget uses the results calculated in the direct labor budget? Cash budget
Why is the sales budget important? It drives multiple calculations in other budgets.
Where on a flexible budget would a user look for depreciation expenses? Fixed costs
A company’s budgeted costs for 60,000 units are as follows: Fixed manufacturing costs $30,000 Variable manufacturing costs $15.00 per unit The company produced 50,000 units. How much is the budgeted total manufacturing cost? $780,000
A company’s planned activity level is 200,000 direct labor hours. At this level of activity, the company budgeted the following manufacturing overhead costs: Variable Indirect materials: $174,000 Indirect labor: $180,000 Factory supplies: $4 $312,000
A static budget, based upon production of 10,000 units, showed an estimated direct labor budget of $30,000 and depreciation budget of $20,000. Direct labor costs are fully variable. The actual direct labor and depreciation costs were $28,000 and $19,000 f $44,000
Paradigm Toys (Q43)What is an explanation for the change in direct labor costs? The company used workers with less experience.
Paradigm Toys (Q44)What is an explanation for the change in direct materials costs? The company used lower quality direct materials.
Jaunty Coffee Company (Q45)What is an explanation for the company’s direct labor variance? The company’s workers were more productive.
A company planned to use 1 yard of plastic per unit budgeted at $81 a yard. However, the plastic actually cost $80 per yard. The company made 4,200 units. Total yards used for production were 3,960. What is the material quantity variance? $19,440 favorable
A company provides the following data for material costs: Standard cost per unit 3 pounds at $2 per unit Actual cost per unit 2.5 pounds at $3 per unit During the month, 5,000 pounds of raw materials were purchased. What is the direct materi $5,000 unfavorable
A company notices that it has significant unutilized capacity and a rapidly rising fixed overhead volume variance. Which action should management take? Consolidate production facilities
A company manufactures snowboards. The company has an unfavorable direct materials price variance that is rising considerably faster than its competitors. Which action should management take? Source new suppliers
Which inventory technique emphasizes lower inventory balances? Just-in-time manufacturing
A company is concerned about the working conditions in their suppliers’ factories in the developing world. Which current trend in managerial accounting would support the consideration of working conditions of employees? Triple bottom line
A large social media firm is considering how to use “big data” collected about its users. Which current trend in managerial accounting will inform how this firm makes decisions about this? Accounting ethics standards
A large international energy company has determined that it can achieve significantly lower costs by reducing expenditures on safety and emissions control. Which trend in managerial accounting will help inform this company’s decision? Corporate social responsibility
A small hair salon is evaluating its performance using the balanced scorecard method. Which metric will appropriately measure the performance of the company from the customer perspective? Percentage of appointments that are kept
An automobile manufacturer evaluates its performance using the balanced scorecard approach. Which metric appropriately measures company performance from the internal process perspective? Number of warranty repairs
A business using the balanced scorecard technique has chosen to increase their emphasis on learning and growth. Where should they invest their funding? Creating management training programs
Created by: rebej07