Accounting 202 Final Exam Questions And 100% Correct Answers
When activity based costing is used for internal decision making, the cost of idle
capacity should be assigned to products. - ANSWER False, it should not be assigned.
Which one of the following statements is NOT true about the cash budget?
a. No other budgets need to be prepared prior to preparing the cash budget.
b. A budgeted income statement must be prepared before the cash budget is prepared.
c. The cash budget should be prepared after the budgeted balance sheet.
d. Supplemental data and the earlier budgets and schedules are the foundation for the
cash budget. - ANSWER a. No other budgets must be prepared before the cash budget
can be prepared.
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 budgeted 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:
a. Supervisory salaries
b. Factory rent
c. Variable Manufacturing Overhead
d. Variable Sellign Expenses - ANSWER a. Supervisory salaries (Fixed, not included in
variable costing)
b. Factory rent (Fixed, not included in variable costing)
c. Variable Manufacturing Overhead
d. Variable Sellign Expenses (Not part of calculating product costs).
The best answer is C.
An unfavorable materials quantity variance indicates that:
a. Actual usage of materials exceed the standard materials for output.
b. Standard material allowed for output exceeds the actual useage of material.
c. Actual Material price exceeds standard price.
d. Standard material price exceeeds actual price. - ANSWER a. Actual usage of
materials exceed the standard materials for output.
The number of units to be produced in a period can be determined by adding the
expected sales to the desired ending inventory and then deducing the Beginning
Inventory. - ANSWER True. Recall, start with expected sales plus desired ending
inventroy then subtract the Beginning Inventory to arrive at the number of units to be
produced.
Which of the following costs of a manufacturing company would be a product cost if the
When activity based costing is used for internal decision making, the cost of idle
capacity should be assigned to products. - ANSWER False, it should not be assigned.
Which one of the following statements is NOT true about the cash budget?
a. No other budgets need to be prepared prior to preparing the cash budget.
b. A budgeted income statement must be prepared before the cash budget is prepared.
c. The cash budget should be prepared after the budgeted balance sheet.
d. Supplemental data and the earlier budgets and schedules are the foundation for the
cash budget. - ANSWER a. No other budgets must be prepared before the cash budget
can be prepared.
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 budgeted 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:
a. Supervisory salaries
b. Factory rent
c. Variable Manufacturing Overhead
d. Variable Sellign Expenses - ANSWER a. Supervisory salaries (Fixed, not included in
variable costing)
b. Factory rent (Fixed, not included in variable costing)
c. Variable Manufacturing Overhead
d. Variable Sellign Expenses (Not part of calculating product costs).
The best answer is C.
An unfavorable materials quantity variance indicates that:
a. Actual usage of materials exceed the standard materials for output.
b. Standard material allowed for output exceeds the actual useage of material.
c. Actual Material price exceeds standard price.
d. Standard material price exceeeds actual price. - ANSWER a. Actual usage of
materials exceed the standard materials for output.
The number of units to be produced in a period can be determined by adding the
expected sales to the desired ending inventory and then deducing the Beginning
Inventory. - ANSWER True. Recall, start with expected sales plus desired ending
inventroy then subtract the Beginning Inventory to arrive at the number of units to be
produced.
Which of the following costs of a manufacturing company would be a product cost if the
