Use of generally accepted accounting principles

Assignment Help Cost Accounting

Reference no: EM13683128

1. Identify the wrong statement

a. Management accounting relies heavily on the use of generally accepted accounting principles

b. Management accounting is future orientation

c. The . oports of management accounting are detailed than reports of financial accounting

d. None of the above

2. The accumulation and recording of data is _________ function

a. The score keeping

b. Attention - directing

C. Problem solving

d. None of the above

3. The planning function emphasizes:

a. Deciding how to achieve desired

b. Comparing results with budgets

c. The use of feedback

d. Evaluation of performance

4. The management control function include:

a. Use of variances from budget

b. Carrying out planning decisions

c. Both of the above

d. None of the above

5. "Management by exception" pertains mainly to:

a. Use of deviation of actual results from budget amount

b. Selection and promotion of mangers

c. Selection of objectives and methods

d. None of the above

6. The principal task of the payroll clerk for an airline is

a. Attention directing c. Decision -making

b. Problem solving d. None of the above

7. The "Watchdog" role of the controller includes the task of:

a. Problem solving c. Scorekeeping

b. Attention directing d. None of the above

8. Give for Mesquite Co Sales $600,000 fixed costs $399,000 and variable costs $180,000. compute the breakeven point:

a. $570,000 C. $1,330,000

b. $597,000 d. $None of the above

9. XYZ trading purchased 6,850 kilos of material at a total cost of Br 21,920. The material price variance was Br 1,370 favorable. The standard price per kilo was

a. Br. 3.10 c. Br 2.80

b. Br 0.80 d. Br 3.40 e. None

10. In January 22,600 labor hours were worked at a standard cost of Br 8.00 per hour the labor efficiency variance was Br 11,200 favorable, how many standard hours were produced?

a. 24, 000 hours c. 20,800 hours

b. 22,600 hours d. 21,600 hours e. None

11. A flexible budget is defined as:

a. A budget of variable production costs only

b. A budget that shows the costs and revenues at different levels of activity

c. A budget that is prepared using a computer spreadsheet model

d. A budget that is updated with actual cost and revenues as they occur during the budget period

e. B and D

12. if the direct labor rate variance is Br 200 unfavorable, and the direct labor efficiency variance is Br 1,000 favorable, than

a. The average rate paid to employees was greater than expected

b. Employees did not work efficiently to accomplish the job

c. Direct labor incurred on this job was Br 800 less than originally planned

d. All of the above are true

13. Papyrus Ltd manufactures one product with a standard direct labor cost of Br 12 per unit (i.e. 2 hours per unit and a rate of Br 6 per hour). During June 500, units were produced using 1,050 hours at Br 6.10 per hour. The unfavorable direct efficiency variance is

a. Br 100F c. Br 300U

b. Br 105U d. Br 305F e. None

14.A company produces and sells two products at unit contribution margins of $4 for A and $10 for B. fixed costs are $21,000. if the planned sales mix is five units of a for each unit of B, the breakeven point would be:

a. 1,250 units of A and 250 units of B

b. 3,500 units of A and 700 units of B

c. Cannot be determined from the data given

d. None of the above

15.The standards for direct materials in making a certain product are 20 pounds at Br 0.75 per pound. During the past period, 56,000 units of product were made and the material quantity variance was Br 30,000 U. the number of pounds of direct material used during the period amounted to.

a. 1,080,000 c. 1,200,000

b. 1,160,000 d. 784,000 e. None

Part It: WORKOUT

Jonathan furniture manufactures and sells two products, x and y. In Julyu 1998 Jonathan furniture budget department gathered the following data in order to prepare budgets for 1999:

1999 projected sates

Product Units Price

X 60,000 $165

Y 40,000 $250

1999 inventories in units

Products Expected Target

January 1, 1999 Dec 31, 1999

X 20,000 25,000

Y 8,000 9,000

A.G

To produce 1 unit of X and XY the following direct materials are used:

Amount used per unit

Direct material	unit
A	Pounds	4	5
B	Pounds	2	3
C	1 each	0	1

Projected data for 1999 with respect to direct materials are as follows

Direct	Anticipated	Expected	Target
Materials	Purchase	Inventories	inventories
	Price	Jan 1, 1999	Dec 31,1999
A	$12	32,000 pounds	36,000 pounds
B	5	29000 pounds	32,000 pounds
C	3	6000 units'	7000 units

Projected direct manufacturing labor requirements and rates for 1999 are as follows:

Product Hours per unit Rate per hour

X 2 $12

3 $16
Manufacturing overhead is allocated at the rate of $20 per direct manufacturing labor - hour.

Required

Basedon the preceding projections and budget requirements for X and Y prepare the following budgets for 1999

1. Revenue budget (in dollars)

2. Production - budget (in units)

3. Direct materials purchases budget (in quantities)

4. Direct materials purchase budget (in dollars)

5. Direct materials purchases budget (in dollars)

Reference no: EM13683128

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