ACC 349 - Week 5 Final Exam. Questions with Answers. Complete Solutions Guide.

ACC 349 - Week 5 Final Exam. Questions with Answers. Complete Solutions Guide. 1 Luca Company overapplied manufacturing overhead during 2006. Which one of the following is part of the year end entry to dispose of the overapplied amount assuming the amount is material?  An increase to finished goods  A decrease to applied overhead  An increase to cost of goods sold  A decrease to work in process inventory 2 An activity that has a direct cause-effect relationship with the resources consumed is a(n)  overhead rate  cost driver  product activity  cost pool 3 Max Company uses 10,000 units of Part A in producing its products. A supplier offers to make Part A for $7. Max Company has relevant costs of $8 a unit to manufacture Part A. If there is excess capacity, the opportunity cost of buying Part A from the supplier is  $80,000  $10,000  $70,000  $0 4 The difference between a budget and a standard is that  a budget expresses a total amount while a standard expresses a unit amount  standards are excluded from the cost accounting system, whereas budgets are generally incorporated into the