# ACCT 434 Midterm Exam

Satisfactory Essays
7904 Words
Grammar
Plagiarism
Writing
Score
ACCT 434 Midterm Exam
(TCO 1) For each of the following drivers identify an appropriate activity.
a. # of machines
b. # of setups
c. # of inspections
d. # of orders
e. # of runs
f. # of bins or aisles
g. # of engineers
(TCO 2) Favata Company has the following information:
Month Budgeted Sales
June \$60,000
July 51,000
August 40,000
September 70,000
October 72,000
In addition, the cost of goods sold rate is 70% and the desired inventory level is 30% of next month’s cost of sales.
Prepare a purchases budget for July through September.
(TCO 1) Merriamn Company provides the following ABC costing information:
(TCO 2) A master budget
(TCO 2) Dalyrymple Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is \$80,000. The budgeted number of nozzles to be inserted is 40,000. What is the budgeted indirect cost allocation rate for this activity?
(TCO 3) Which cost estimation method analyzes accounts in the subsidiary ledger as variable, fixed, or mixed using qualitative methods?
(TCO 4) In evaluating different alternatives, it is useful to concentrate on
(TCO 5) The theory of constraints is used for cost analysis when
(TCO 5) Schmidt Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows:
Direct materials \$45,000
Direct labor 65,000
Total costs \$210,000
Of the fixed factory overhead costs, \$30,000 is avoidable.
Phil Company has offered to sell 10,000 units of the same part to Schmidt Corporation for \$18 per unit. Assuming there is no other use for the facilities, Schmidt should
(TCO 3) Patrick Ross, the president of Ross’s Wild Game Company, has asked for information about the cost behavior of manufacturing overhead costs. Specifically,

## You May Also Find These Documents Helpful

• Satisfactory Essays

Each month’s ending inventory should equal 20% of the following month’s budgeted cost of goods sold.…

• 434 Words
• 4 Pages
Satisfactory Essays
• Good Essays

This paperwork ACC 561 Week 4 IndividualWileyPlus Exercise BE18 1, BE18 7, BE18 11 includes answers to these exercises:…

• 322 Words
• 3 Pages
Good Essays
• Satisfactory Essays

1. 1. The GASB states to identify all financial reporting by the government. The financial report will show all the information about the funds. To report a new fund is fine because there is too much information to put it in the financial statement of the government wide statements. Using an enterprise fund would allow revenue and expenses to show separately, than putting all revenue and expenses with the government activities.…

• 321 Words
• 2 Pages
Satisfactory Essays
• Satisfactory Essays

ACCT505 Part B Capital Budgeting problem Clark Paints, Inc. Data: Cost of new equipment \$200,000 Expected life of equipment in years 5 Disposal value in 5 years \$40,000 Life production - number of cans 5,500,000 Annual production or purchase needs 1,100,000 Initial training costs 0 Number of workers needed 3 Annual hours to be worked per employee 2,000 Earnings per hour for employees \$12.00 Annual health benefits per employee \$2,500 Other annual benefits per employee-% of wages 18% Cost of raw materials per can \$0.25 Other variable production costs per can \$0.05 Costs to purchase cans - per can \$0.45 Required rate of return 12% Tax rate 35% Make Purchase Cost to produce Annual cost of direct material: Need of 1,100,000 cans per year \$275,000 Annual cost of direct labor for new employees: Wages 72,000 Health benefits 7,500…

• 598 Words
• 3 Pages
Satisfactory Essays
• Satisfactory Essays

You must show logically correct work, including calculator inputs and outputs for all problems to receive credit. Show signs on calculator inputs. Differentiate calculator outputs from inputs.…

• 2763 Words
• 12 Pages
Satisfactory Essays
• Good Essays

Prepare a single-step income statement for Allen for 2012. Allen has 100,000 shares of stock outstanding.…

• 1095 Words
• 5 Pages
Good Essays
• Satisfactory Essays

Maria holds an instrument that states "I wish you would pay". Maria's instrument is negotiable.…

• 1728 Words
• 12 Pages
Satisfactory Essays
• Good Essays

Manufacturing Overhead. These product costs are attached to each unit until the units are sold, at…

• 2272 Words
• 16 Pages
Good Essays
• Satisfactory Essays

6. Determine whether Nathan’s care provider is a dependent and explain why or why not?…

• 537 Words
• 3 Pages
Satisfactory Essays
• Satisfactory Essays

Todhunter Publications established the following standard price and costs for a hardcover picture book that the company produces.…

• 322 Words
• 2 Pages
Satisfactory Essays
• Good Essays

3) The concept of materiality is defined by the Financial Accounting Standards Board (FASB) in terms of the judgment of the…

• 2807 Words
• 14 Pages
Good Essays
• Satisfactory Essays

(TCO A) When the activity level is expected to increase within the relevant range, what effects would be anticipated with respect to each of the following?…

• 681 Words
• 3 Pages
Satisfactory Essays
• Satisfactory Essays

Merton is considering the introduction of a new truck, to be called Model 103. Each model 103 truck would give a contribution of \$1800. The total engine assembly capacity would be sufficient to produce 5000 model 103s per month, and the total metal stamping would be sufficient to produce 4000 Model 103s. The new truck would be assembled in the Model 101 assembly department, each model 103 truck requiring only half as much time as a Model 101 truck. Keep a printout of the answer and sensitivity report with header for three trucks case. You need not submit this excel file by email for three trucks case. However,…

• 523 Words
• 2 Pages
Satisfactory Essays