ACC 561 FINAL EXAM 4
The investigation of materials price variance usually begins in the:
first production department.
purchasing department.
controller's office.
accounts payable department.
Scorpion Production Company planned to use 1 yard of plastic per unit budgeted at $81 a yard.
However, the plastic actually cost $80 per yard. The company actually made 3,900 units, although it had
planned to make only 3,300 units. Total yards used for production were 3,960. How much is the total
materials variance?
$3,960 F
$900 U
$4,860 U
$48,600 U
Which of the following statements concerning users of accounting information is incorrect?
Management is considered an internal user.
Taxing authorities are considered external users.
Present creditors are considered external users.
Regulatory authorities are considered internal users.
Ben Gordon, Inc. manufactures 2 products, wheels and seats. The company has estimated its overhead
in the assembling department to be $660,000. The company produces 300,000 wheels and 600,000
seats each year. Each wheel uses 2 parts, and each seat uses 3 parts. How much of the assembly
overhead should be allocated to wheels?
$220,000
,
$264,000
$165,000
$282,856
question5
Top management notices a variation from budget and an investigation of the difference reveals that the
department manager could not be expected to have controlled the variation. Which of the following
statements is applicable?
Department managers should be credited for favorable variances even if they are beyond their
control.
Department managers should be held accountable for all variances from budgets for their
departments.
Department managers should only be held accountable for controllable variances for their
departments.
Department managers' performances should not be evaluated based on actual results to
budgeted results.
Based on the following data, what is the amount of working capital?
Accounts payable………………………………………………………..$64,000
Accounts receivable……………………………………………………..114,000
Cash………………………………………………………………………. 70,000
Intangible assets…………………………………………………………100,000
Inventory…………………………………………………………………. 138,000
Long-term investments…………………………………………………..160,000
Long-term liabilities……………………………… ……………………...200,000
Short-term investments…………………………………………………...80,000
Notes payable (short-term)………………………………………………..56,000
Property, plant, and equipment………………………………………..1,340,000
Prepaid insurance……………………………………………………….......2,000
$284,000
$370,000
$326,000
The investigation of materials price variance usually begins in the:
first production department.
purchasing department.
controller's office.
accounts payable department.
Scorpion Production Company planned to use 1 yard of plastic per unit budgeted at $81 a yard.
However, the plastic actually cost $80 per yard. The company actually made 3,900 units, although it had
planned to make only 3,300 units. Total yards used for production were 3,960. How much is the total
materials variance?
$3,960 F
$900 U
$4,860 U
$48,600 U
Which of the following statements concerning users of accounting information is incorrect?
Management is considered an internal user.
Taxing authorities are considered external users.
Present creditors are considered external users.
Regulatory authorities are considered internal users.
Ben Gordon, Inc. manufactures 2 products, wheels and seats. The company has estimated its overhead
in the assembling department to be $660,000. The company produces 300,000 wheels and 600,000
seats each year. Each wheel uses 2 parts, and each seat uses 3 parts. How much of the assembly
overhead should be allocated to wheels?
$220,000
,
$264,000
$165,000
$282,856
question5
Top management notices a variation from budget and an investigation of the difference reveals that the
department manager could not be expected to have controlled the variation. Which of the following
statements is applicable?
Department managers should be credited for favorable variances even if they are beyond their
control.
Department managers should be held accountable for all variances from budgets for their
departments.
Department managers should only be held accountable for controllable variances for their
departments.
Department managers' performances should not be evaluated based on actual results to
budgeted results.
Based on the following data, what is the amount of working capital?
Accounts payable………………………………………………………..$64,000
Accounts receivable……………………………………………………..114,000
Cash………………………………………………………………………. 70,000
Intangible assets…………………………………………………………100,000
Inventory…………………………………………………………………. 138,000
Long-term investments…………………………………………………..160,000
Long-term liabilities……………………………… ……………………...200,000
Short-term investments…………………………………………………...80,000
Notes payable (short-term)………………………………………………..56,000
Property, plant, and equipment………………………………………..1,340,000
Prepaid insurance……………………………………………………….......2,000
$284,000
$370,000
$326,000
