Reference no: EM13325721

1. The total cost transferred from the first processing department to the next processing department during the month is closest to
A. $436,400.
B. $420,414.
C. $452,300.
D. $512,700.

2. Freeman Company uses a predetermined overhead rate based on direct-labor hours to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated manufacturing overhead would be $150,000 and direct-labor hours would be 10,000. The actual figures for the year were $186,000 for manufacturing overhead and 12,000 direct-labor hours. The cost records for the year will
show

A. overapplied overhead of $30,000.
B. underapplied overhead of $30,000.
C. underapplied overhead of $6,000.
D. overapplied overhead of $6,000.

3. The cost of goods manufactured (finished) for the year (in thousands of dollars) was
A. $530.
B. $500.
C. $520.
D. $460.

4. What are the equivalent units for conversion costs for the month in the first processing department?
A. 8,200
B. 360
C. 8,560
D. 10,000

5. Lee Company's cost of goods sold for June was
A. $14,640.
B. $15,520.
C. $9,730.
D. $10,170.

6. Which of the following is not one of the five steps in the lean-thinking model discussed in the text?
A. Organize work arrangements around the flow of the business process.
B. Create a pull system that responds to customer orders.
C. Identify the business process that delivers value.
D. Automate the business process.

7. The cost per equivalent unit for conversion costs for the first department for the month is closest to
A. $40.77.
B. $37.68.
C. $33.24.
D. $38.83.

8. Becky works on the assembly line of a manufacturing company where she installs a component part for one of the company's products. She's paid $16 per hour for regular time, and time and a half for all work in excess of 40 hours per week. Becky's employer offers fringe benefits that cost the company $3 for each hour of employee time (both regular and overtime). During a given week, Becky works 42 hours but is idle for 3 hours due to material shortages. The company treats all fringe benefits relating to direct labor as added direct labor cost and the remainder as part of manufacturing overhead. The allocation of Becky's wages and fringe benefits for the week between direct labor cost and manufacturing overhead would be which of the following?

A. Direct Labor: $672 / Manufacturing Overhead: $142
B. Direct Labor: $624 / Manufacturing Overhead: $190
C. Direct Labor: $741 / Manufacturing Overhead: $73
D. Direct Labor: $688 / Manufacturing Overhead: $126

9. Assume there's no beginning work-in-process inventory and that the ending work-in-process inventory is 100% complete with respect to materials costs. The number of equivalent units with respect to materials costs under the weighted-average method is

A. the same as the number of units put into production.

B. less than the number of units completed.

C. the same as the number of units completed.

D. less than the number of units put into production.

10. Cost of goods manufactured will usually include

A. only direct labor and direct materials costs.
B. some period costs as well as some product costs.
C. only costs incurred during the current period.
D. some costs incurred during the prior period as well as costs incurred during the current period.

11. The cost per equivalent unit for materials for the month in the first processing department is closest to
A. $11.39.
B. $12.44.
C. $11.99.
D. $11.82.

12. Which situation always results in underapplied overhead?

A. Actual overhead is greater than applied overhead.
B. Estimated overhead is greater than actual overhead.
C. Actual overhead is less than applied overhead.
D. Estimated overhead is less than actual overhead.

13. What is the total amount of the costs listed above that are not direct costs of the Brentwood Store?

A. $36,000
B. $43,000
C. $78,000
D. $162,000

14. Assume there's no beginning work-in-process inventory and the ending work-in-process inventory is 70% complete with respect to conversion costs. Under the weighted-average method, the number of equivalent units of production with respect to conversion costs would be
A. the same as the units completed.
B. less than the units started during the period.
C. less than the units completed.
D. the same as the units started during the period.

15. The cost of goods sold for the year (in thousands of dollars) was
A. $670.
B. $500.
C. $540.
D. $650.

16. Lee Company's work-in-process inventory balance on June 30 was
A. $3,940.
B. $9,450.
C. $4,100.
D. $3,300.

17. Which person would occupy a line position in a department store?

I. Sales manager
II. Manager, furniture department
III. Manager, advertising department
IV. Manager, personnel department
A. Only I, II, III
B. Only I and II
C. I, II, III, IV
D. Only I

18. The work-in-process inventory at the end of August after allocation of any underapplied or overapplied overhead for the month is closest to

A. $17,267.
B. $18,593.
C. $18,780.
D. $17,080.

19. The management of Baggerly Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine hours, and the estimated amount of the allocation base for the upcoming year is 81,000 machine hours. In addition, capacity is 95,000 machine hours, and the actual level of activity for the year is 84,900 machine hours.

All of the manufacturing overhead is fixed and is $6,617,700 per year. For simplicity, it's assumed that this is the estimated manufacturing overhead for the year as well as the manufacturing overhead at capacity. It's further assumed that this is also the actual amount of manufacturing overhead for the year.

If the company bases its predetermined overhead rate on capacity, by how much was manufacturing overhead underapplied or overapplied?

A. $318,630 underapplied
B. $703,566 overapplied
C. $703,566 underapplied
D. $318,630 overapplied

20. What is the total amount of the costs listed above that are direct costs of the Shoe Department?

A. $79,000
B. $35,000
C. $43,000
D. $40,000