Ac505 Managerial Accounting Final Exam

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| AC505 MANAGERIAL ACCOUNTINGFINAL EXAMWeek 8: Week 8: Final Exam - Final Exam|  | | |  Help| |  |  |

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1. (TCO A) Wages paid to the factory manager are considered an example of: (Points: 5)         Direct Labor - yes,    Period Cost - yes          Direct Labor - yes,     Period Cost - No          Direct Labor - no ,    Period Cost - yes          Direct Labor - no ,    Period Cost - no 

2. (TCO A) Property taxes on a manufacturing plant are an element of: (Points: 5)         Conversion cost - yes, period cost - no 
        Conversion cost - yes, period cost - yes 
        Conversion cost - no, period cost - yes 
        Conversion cost - no, period cost - no 

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 $99,900 would be:(Points: 5)         5,970 units 
        6,000 units 
        6,240 units 
        6,500 units 

4. (TCO B) Garth Company sells a single product. If the selling price per unit and the variable expense per unit both increase by 12% and fixed expenses do not change, then: (Points: 5)         Contribution Margin Per Unit - Increases, Contribution Margin Ratio - Increases, Break-Even in Units - Decreases          Contribution Margin Per Unit - No Change, Contribution Margin Ratio - No Change, Break-Even in Units - No Change          Contribution Margin Per Unit - No Change, Contribution Margin Ratio-Increases, Break-Even in Units - No Change          Contribution Margin Per Unit - Increases, Contribution Margin Ratio - No Change, Break-Even in Units - Decreases 

5. (TCO E) The following data were provided by Trusty Corp., which produces a single product:  | Year 1| Year 2| Year 3| Units produced| 6,000| 7,000| 8,000|
Units Sold| 6,000| 6,000| 6,000|
The selling price per unit, variable costs per unit, and total fixed costs are the same for each year.  If variable costing is in use, one would expect:(Points: 5)         net operating income to be erratic over the three-year period.          net operating income to be the same for each year.          the break-even point to be lower in Year 2 than in Year 3.          net operating income to be higher in Year 2 than in Year 1. 

6. (TCO F) Sagon 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 $66,000. Which of the following statements is true?  (Points: 5)         Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $76,000          Actual manufacturing overhead incurred during the month was $66,000          Manufacturing overhead applied to Work in Process for the month was $76,000          Manufacturing overhead for the month was underapplied by $10,000 

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)         internal rate of return. 
        discount rate used in the NPV calculation. 
        firm's simple rate of return. ...
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