MBA 700 GAO HW 2 EXAM QUESTION SWITH
CORRECT ANSWERS .
A company manufactures motorcycles. Compute the total amount of direct materials
costs from the following costs.
Cost item
a. Tires, $11,000
b. Motorcycle seats, $18,000
c. Handlebars, $5,000
d. Factory accounting, $10,000
e. Factory equipment depreciation, $5,000
f. Assembly worker wages, $15,000
g. Factory rent, $60,000
h. Assembly worker benefits, $5,000
i. Bike frames, $14,000 - CORRECT ANSWER✅✅$48,000
A company's attempts to utilize sustainable business practices with regard to its
employees, the environment, and society are known as ________. - CORRECT
ANSWER✅✅corporate social responsibility
A company's prime costs total $4,599,000 and its conversion costs total $5,610,000. If
direct materials costs are $2,121,000 and direct labor costs are $2,478,000, calculate
the overhead costs: - CORRECT ANSWER✅✅$3,132,000
A manufacturing company has a beginning finished goods inventory of $15,000, raw
material purchases of $18,400, cost of goods manufactured of $33,300, and an ending
finished goods inventory of $18,200. The cost of goods sold for this company is: -
CORRECT ANSWER✅✅$30,100
A partial listing of costs incurred during March at Febbo Corporation appears below:
Factory supplies $ 9,000
Administrative wages and salaries $ 85,000
Direct materials $ 126,000
Sales staff salaries $ 30,000
Factory depreciation $ 33,000
Corporate headquarters building rent $ 43,000
Indirect labor $ 26,000
Marketing $ 65,000
Direct labor $ 99,000
The total of the period costs listed above for March is: - CORRECT
ANSWER✅✅$223,000
, A process that is often linked to Six Sigma and is designed toward continuous
improvement by eliminating waste is ________. - CORRECT ANSWER✅✅Kaizen
A Report that lists the types and amounts of costs incurred in manufacturing is a: -
CORRECT ANSWER✅✅Schedule of cost of goods manufactured
A scatter graph is used to test the assumption that the relationship between cost and
activity level is ________. - CORRECT ANSWER✅✅linear
An inventory system that organizations use to increase efficiency and decrease waste is
________. - CORRECT ANSWER✅✅just-in-time manufacturing
Conversion costs include all of the following except: - CORRECT ANSWER✅✅direct
materials purchased
Costs incurred from converting raw materials to finished goods are known as: -
CORRECT ANSWER✅✅Conversion costs
During the control function, the measurements taken of the performance must be
accurate enough to see ________. - CORRECT ANSWER✅✅deviations and variances
External users of accounting information would include ________. - CORRECT
ANSWER✅✅investors
Fixed costs are expenses that ________. - CORRECT ANSWER✅✅remain constant in
total regardless of activity level within a relevant range
For product costs associated with a product to be reported on the income statement: -
CORRECT ANSWER✅✅The product must be sold.
In the cost equation Y = a + bx, Y represents which of the following? - CORRECT
ANSWER✅✅total costs
Internal users of accounting information would not include ________. - CORRECT
ANSWER✅✅creditors
Management accountants help the management of an organization in their planning
function through ________. - CORRECT ANSWER✅✅strategic planning
Management accounting: - CORRECT ANSWER✅✅emphasizes special-purpose
information
Managerial accounting produces information: - CORRECT ANSWER✅✅that is often
focused on the future
CORRECT ANSWERS .
A company manufactures motorcycles. Compute the total amount of direct materials
costs from the following costs.
Cost item
a. Tires, $11,000
b. Motorcycle seats, $18,000
c. Handlebars, $5,000
d. Factory accounting, $10,000
e. Factory equipment depreciation, $5,000
f. Assembly worker wages, $15,000
g. Factory rent, $60,000
h. Assembly worker benefits, $5,000
i. Bike frames, $14,000 - CORRECT ANSWER✅✅$48,000
A company's attempts to utilize sustainable business practices with regard to its
employees, the environment, and society are known as ________. - CORRECT
ANSWER✅✅corporate social responsibility
A company's prime costs total $4,599,000 and its conversion costs total $5,610,000. If
direct materials costs are $2,121,000 and direct labor costs are $2,478,000, calculate
the overhead costs: - CORRECT ANSWER✅✅$3,132,000
A manufacturing company has a beginning finished goods inventory of $15,000, raw
material purchases of $18,400, cost of goods manufactured of $33,300, and an ending
finished goods inventory of $18,200. The cost of goods sold for this company is: -
CORRECT ANSWER✅✅$30,100
A partial listing of costs incurred during March at Febbo Corporation appears below:
Factory supplies $ 9,000
Administrative wages and salaries $ 85,000
Direct materials $ 126,000
Sales staff salaries $ 30,000
Factory depreciation $ 33,000
Corporate headquarters building rent $ 43,000
Indirect labor $ 26,000
Marketing $ 65,000
Direct labor $ 99,000
The total of the period costs listed above for March is: - CORRECT
ANSWER✅✅$223,000
, A process that is often linked to Six Sigma and is designed toward continuous
improvement by eliminating waste is ________. - CORRECT ANSWER✅✅Kaizen
A Report that lists the types and amounts of costs incurred in manufacturing is a: -
CORRECT ANSWER✅✅Schedule of cost of goods manufactured
A scatter graph is used to test the assumption that the relationship between cost and
activity level is ________. - CORRECT ANSWER✅✅linear
An inventory system that organizations use to increase efficiency and decrease waste is
________. - CORRECT ANSWER✅✅just-in-time manufacturing
Conversion costs include all of the following except: - CORRECT ANSWER✅✅direct
materials purchased
Costs incurred from converting raw materials to finished goods are known as: -
CORRECT ANSWER✅✅Conversion costs
During the control function, the measurements taken of the performance must be
accurate enough to see ________. - CORRECT ANSWER✅✅deviations and variances
External users of accounting information would include ________. - CORRECT
ANSWER✅✅investors
Fixed costs are expenses that ________. - CORRECT ANSWER✅✅remain constant in
total regardless of activity level within a relevant range
For product costs associated with a product to be reported on the income statement: -
CORRECT ANSWER✅✅The product must be sold.
In the cost equation Y = a + bx, Y represents which of the following? - CORRECT
ANSWER✅✅total costs
Internal users of accounting information would not include ________. - CORRECT
ANSWER✅✅creditors
Management accountants help the management of an organization in their planning
function through ________. - CORRECT ANSWER✅✅strategic planning
Management accounting: - CORRECT ANSWER✅✅emphasizes special-purpose
information
Managerial accounting produces information: - CORRECT ANSWER✅✅that is often
focused on the future
