(TCO 1) The goal of managerial accounting is to provide information that managers need for which of the below?

ACCT 346 Managerial Accounting  Week 4 Midterm with Answers
  1. (TCO 1) The goal of managerial accounting is to provide information that managers need for which of the below?
  2. (TCO 1) Josie’s Grill budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: materials, $4,080; hourly labor (variable), $6,976; rent (fixed), $1,700; depreciation, $800; and other fixed costs, $600. Each steak dinner sells for $14.00 each. How much is the budgeted variable cost per unit?
  3. (TCO 1) Which of the following is NOT a period cost?
  4. (TCO 1) On December 31, 2015, GLE Inc. has a balance in the Work-in-Process Inventory account of $62,000. On January 1, 2015, the balance was $55,000. Current manufacturing costs for the year are $292,000, and cost of goods sold is $284,000. How much is cost of goods manufactured?
  5. (TCO 2) Paul Company applies manufacturing overhead based on direct labor cost. Information concerning manufacturing overhead and labor for August follows.

                                                    Estimated                     Actual
    Overhead cost                         $174,000                        $171,000
    Direct labor hours                           5,800                             5,900
    Direct labor cost                        $90,155                          $87,000

    How much is the predetermined overhead rate?
  6. (TCO 2) During 2015, Michael Company applied overhead using a job-order costing system at a rate of $12 per direct labor hours. Estimated direct labor hours for the year were 150,000, and estimated overhead for the year was $1,800,000. Actual direct labor hours for 20x1 were 140,000, and actual overhead was $1,700,000.
    What is the amount of under- or over-applied overhead for the year?
  7. (TCO 2) Manufacturers follow four steps to implement a manufacturing overhead allocation system. Which step is notperformed before the year begins?
  8. (TCO 1) Which of the following types of costs are conversion costs?
  9. (TCO 6) In an activity-based costing system, cost reduction is accomplished by identifying and eliminating:
  10. (TCO 3) Kerner Manufacturing uses a process cost system to manufacture laptop computers. The following information summarizes operations relating to laptop computer model #KJK20 during the quarter ending March 31:
                                                                                            Units                   Direct Labor
    Work-in-process inventory, January 1                             100                    $50,000
    Started during the quarter                                              500
    Completed during the quarter                                         400
    Work-in-process inventory, March 31                              200
    Costs added during the quarter                                                               $720,000
    Beginning work-in-process inventory was 50% complete for direct labor costs. Ending work-in-process inventory was 75% complete for direct labor costs. What is the equivalent unit of production using the weighted-average unit cost inventory valuation method?
  11. (TCO 2) Sweet Co. uses budgeted overhead rates to apply overhead to individual jobs. They use a system based on direct labor hours. Last year, the company made the following estimates for this year. 
    Direct labor costs                 $48,000,000
    Factory overhead costs         $6,400,000
    Direct Labor Hours                     80,000
    Machine Hours                          110,000
    (a) What is the budgeted overhead rate for the company?
    (b) If Job #34567 had the following:
    Material costs were $500,000; 
    Direct labor costs were $450,000; 
    Direct labor hours were 25,000; and 
    Machine hours were 36,000, 
    then what is the total cost of Job #34567?
  12. (TCO 3) Adnan Company uses process costing. At the beginning of the month, there were 8,000 units in process, 90% complete with respect to material and 80% complete with respect to conversion costs. 40,000 units were started during the month and 40,000 units were completed. The units in ending Work-In-Process Inventory were 70% complete with respect to material and 10% complete with respect to conversion costs. How many equivalent units will be used in calculating the cost per unit for materials?
  13. (TCO 6) Handy Display Company manufactures display cases to be sold to retail stores. The cases come in three sizes: large, medium, and small. Currently, Handy Display Company uses a single plant-wide overhead rate to allocate its $3,357,800 of annual manufacturing overhead. Of this amount, $820,000 is associated with the Large Case line, $1,276,800 is associated with the Medium Case line, and $1,261,000 is associated with the Small Case line. Handy Display Company is currently running a total of 33,000 machine hours: 10,000 in the Large Case line, 13,300 in the Medium Case line, and 9,700 in the Small Case line. Handy Display Company uses machine hours as the cost driver for manufacturing overhead costs.  
    Requirement: Calculate the departmental overhead rate for each of the three departments listed.
  14. (TCO 2) Fred Co. incurred costs of $900,000 for direct materials (raw) purchased. Direct labor was $10,000 and factory overhead was $10,000 for March.

    Inventories were as follows:
    raw materials beginning $1,000; raw materials ending $2,000

    work-in-process beginning $190,000; work-in-process ending $170,000

    finished goods beginning $10,000; finished goods ending $10,500

    What is the cost of goods manufactured? Please show your work.