ACCT 202 FINAL ULL COMPREHENSIVE
EXAM SCRIPT VERIFIED QUESTIONS AND
SOLUTIONS
●● Which of the following statements is NOT correct concerning the
cash budget?
a. It is not necessary to prepare any other budgets before preparing the
cash budget.
b. The cash budget should be prepared before the budgeted income
statement.
c. The cash budget should be prepared before the budgeted balance
sheet.
d. The cash budget builds on earlier budgets and schedules as well as
additional data.
Answer: a. It is not necessary to prepare any other budgets before
preparing the cash budget.
●● Hamitor Framing's cost formula for its supplies cost is $1,640 per
month plus $9 per frame. For the month of August, the company planned
for activity of 572 frames, but the actual level was 573 frames. The
actual supplies cost for the month was $7,080. The supplies cost in the
planning budget for August would be closest to:
,a. $7,080
b. $7,068
c. $6,788
d. $6,797
Answer: c. $6,788
1,640 + (9 x 572) = $6,788
●● Using the ABC system, how much total MOH would be assigned to
product T05P?
Machining Machine Hours $180,000 9,000 MH's
Machine setups # of setups $125,000 250 setups
Product Design # of products $44,000 2 products
General Factory DLH's $260,000 10,000 DLH's
a. $156,000
b. $303,000
c. $147,000
d. $304,500
Answer: b. $303,000
, Machining 180,000/9,000 = 20 MH x 4,000 =
Machine setups 125,000/250 = 500 setups x 90
Product Setup 44,000/2 = 27,000 products x 1
General Factory 260,000/10,000 = 26 per DLH x 6 = $303,000
●● Elliot corporation makes and sells a single product. Last period the
company labor rate variance was $14,400 U. During the period, the
company worked 36,000 actual Direct Labor Hours at an actual cost of
$338,400. The standard labor rate for the product in dollars per hour is:
a. $9.40
b. $9.00
c. $8.50
d. $8.10
Answer: b. $9.00
$338,400 - 14,400 = 324,000
AH X SR = 324,000/36,000 = $9
●● A cost that would be included in product costs under both absorption
costing and variable costing is:
EXAM SCRIPT VERIFIED QUESTIONS AND
SOLUTIONS
●● Which of the following statements is NOT correct concerning the
cash budget?
a. It is not necessary to prepare any other budgets before preparing the
cash budget.
b. The cash budget should be prepared before the budgeted income
statement.
c. The cash budget should be prepared before the budgeted balance
sheet.
d. The cash budget builds on earlier budgets and schedules as well as
additional data.
Answer: a. It is not necessary to prepare any other budgets before
preparing the cash budget.
●● Hamitor Framing's cost formula for its supplies cost is $1,640 per
month plus $9 per frame. For the month of August, the company planned
for activity of 572 frames, but the actual level was 573 frames. The
actual supplies cost for the month was $7,080. The supplies cost in the
planning budget for August would be closest to:
,a. $7,080
b. $7,068
c. $6,788
d. $6,797
Answer: c. $6,788
1,640 + (9 x 572) = $6,788
●● Using the ABC system, how much total MOH would be assigned to
product T05P?
Machining Machine Hours $180,000 9,000 MH's
Machine setups # of setups $125,000 250 setups
Product Design # of products $44,000 2 products
General Factory DLH's $260,000 10,000 DLH's
a. $156,000
b. $303,000
c. $147,000
d. $304,500
Answer: b. $303,000
, Machining 180,000/9,000 = 20 MH x 4,000 =
Machine setups 125,000/250 = 500 setups x 90
Product Setup 44,000/2 = 27,000 products x 1
General Factory 260,000/10,000 = 26 per DLH x 6 = $303,000
●● Elliot corporation makes and sells a single product. Last period the
company labor rate variance was $14,400 U. During the period, the
company worked 36,000 actual Direct Labor Hours at an actual cost of
$338,400. The standard labor rate for the product in dollars per hour is:
a. $9.40
b. $9.00
c. $8.50
d. $8.10
Answer: b. $9.00
$338,400 - 14,400 = 324,000
AH X SR = 324,000/36,000 = $9
●● A cost that would be included in product costs under both absorption
costing and variable costing is:
