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ACCT 434 Week 6 Quiz

ACCT 434 WEEK 6 QUIZ – DEVRY

ACCT 434 WEEK 6 QUIZ – DEVRY

1. (TCO 9) To guide cost allocation decisions, the benefits-received criterion (Points : 5)

2. (TCO 9) Which cost-allocation criterion is MOST likely to subsidize poor performers at the expense of the best performers? (Points : 5)

3. (TCO 9) The MOST likely reason for NOT allocating corporate costs to divisions include that (Point : 5)

4. (TCO 9) Identifying homogeneous cost pools (Points : 5)

5.(TCO 9) The Hassan Corporation has an electric mixer division and an electric lamp division. Of a $20,000,000 bond issuance, the electric mixer division used $14,000,000 and the electric lamp division used $6,000,000 for expansion. Interest costs on the bond totaled $1,500,000 for the year. Which corporate costs should be allocated to divisions? (Points : 5)

6.(TCO 10) The capital budgeting method, which calculates the expected monetary gain or loss from a project by discounting all expected read more future cash inflows and outflows to the present using the required rate of return, is the (Points : 5)

7. (TCO 10) Assume your goal in life is to retire with $1.5 million. How much would you need to save at the end of each year if interest rates average 5% and you have a 25-year work life? (Points : 5)

8. (TCO 10) The net-present-value method focuses on (Points : 5)

9. (TCO 10) A “what-if” technique that examines how a result will change if the original predicted data are not achieved or if an underlying assumption changes is called (Points : 5)

10. (TCO 10) Upper Darby Park Department is considering a new capital investment. The following information is available on the investment. The cost of the machine will be $150,000. The annual cost savings if the new machine is acquired will be $40,000. The machine will have website a 5-year life, at which time the terminal disposal value is expected to be $20,000. Upper Darby Park Department is assuming no tax consequences. If Upper Darby Park Department has a required rate of return of 10%, which of the following is closest to the present value of the project? (Points : 5)


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ACCT346 Final Exam (New) - DeVry

ACCT 346 FINAL EXAM (NEW) – DEVRY

ACCT 346 FINAL EXAM (NEW) – DEVRY

Page 1

Question 1.1. (TCO 4) Assumptions underlying cost-volume-profit analysis include all of the following, except: (Points : 5)

Question 2.2. (TCO 6) Which of the following is true about activity-based costing? (Points : 5)

Question 3.3. (TCO 2) In a traditional job order cost system, the issue of direct materials to a production department increases: (Points : 5)

Question 4.4. (TCO 5) A cost driver is defined as: (Points : 5)

Question 5.5. (TCO 8) Wood Co. has considerable excess manufacturing capacity. A special job order’s cost sheet includes the following applied manufacturing overhead costs: Fixed costs: 25,000…….Variable costs: 36,000…………The fixed costs include a normal $4,500 allocation for in-house design costs, although no in-house design will be done. Instead, the job will require the use of external designers costing $9,250. What is the total amount to be included in the calculation to determine the minimum acceptable price for the job? (Points : 5)

Question 6. 6. (TCO 1) How does managerial and financial accounting differ in terms of the amount of detail presented and nonmonetary and monetary information? (Points : 25)

Question 7. 7. (TCO 2) Wolf Co. estimates that its employees will work 500,000 direct labor hours during the coming year. Total overhead costs are estimated to be $9,600,000 and direct labor costs are estimated to be $12,500,000. Direct Labor hours are actually 450,000…………….If Wolf Co. allocates overhead based on direct labor HOURS, what is the predetermined overhead rate? (Points : 25)

Page 2

Question 1. 1. (TCO 3) The ACCT346 Final Exam Mixing Department is the third department in the MZS Inc. factory. During January, there were 4,000 units of beginning inventory in the Mixing Department, and 90,000 units were transferred in from ACCT 346 the prior process. There were 8,000 units in ending inventory. The transferred-in cost in the beginning inventory was $170,000 and there was $600,000 in transferred-in cost during the month……….What is the cost per equivalent unit for transferred-in cost? (Points : 25)

Question 2. 2. (TCO 4) Assume that we are manufacturing a product and assume that the sales price per unit is $60 and the variable cost is $20 per unit and the fixed cost is $80,000; a) how many units would we need to sell to break even? b) How many units would we need to sell to earn a profit of $120,000? c) How many units do we need to sell to double that profit to $240,000? D) Why didn’t the number of units double from Part B to Part C? (Points : 25)

Question 3. 3. (TCO 5) Sivan Co. manufactures and sells one product. For the year, they started with no opening inventory; produced 100,000 units, but only sold 70,000 units. The selling price per each unit is $60……………….(a) Prepare the Income Statement using Absorption Costing. (b) Prepare the Income Statement using Variable Costing. (Points : 25)

Question 4. 4. (TCO 6) At Long Co. electricity cost starts with a minimum fixed cost, and after that, there is a perfectly variable expense. Using ACCT 346 Final Exam estimated machine hours:……………..What is the a) estimated variable cost per machine hour and what is the b) estimated TOTAL fixed cost? (Points : 25)

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