Final Examination for ACCT
526 at the University of
Louisiana, Lafayette
,Question 1
Correct
Mark: 3.00 out of 3.00
Started on Tuesday, 10 October 2017, 8:42 PM
Completed on Tuesday, 10 October 2017, 10:42 PM
Time taken: 2 hours
Grade: 153.00 out of 180.00 (85%)
Overhead costs are allocated to production using an overhead application rate, while direct
materials and direct labor costs are not assigned using such a rate. The reason for this difference
is:
Select one:
a. Overhead is an indirect cost that cannot be easily and directly traced to specific units of
product.
b. Independent of both the number and type of products manufactured and also independent of
the amount of overhead costs incurred.
c. Traceable directly to the products manufactured but independent of the amount of overhead
costs incurred.
d. Independent of the type and number of units manufactured but a causal factor in the amount of
overhead cost incurred.
Your answer is correct.
The correct answer is: overhead is an indirect cost which cannot be traced easily and directly
to specific units of product.
Question 2
Correct
Mark: 3.00 out of 3.00
Question 3
Correct
Mark: 3.00 out of 3.00
An advantage of using regression analysis over the high-low and scattergraph methods is that:
Select one:
a. Neither: regression analysis is less costly to implement than high-low or scattergraph methods
or is a more precise approach than the high-low or scattergraph methods.
b. Regression analysis is less costly to implement than high-low or scattergraph methods.
c. Regression analysis is a more precise approach than the high-low or scattergraph methods.
d. Both: regression analysis is less costly to implement than high-low or scattergraph methods
and is a more precise approach than the high-low or scattergraph methods.
Your answer is correct.
The correct answer is: regression analysis is a more precise approach than the high-low or
scattergraph methods.
, An example of a discretionary fixed cost is:
Select one:
a. Depreciation of buildings and equipment.
b. Insurance.
c. Management training.
d. Taxes on real estate.
Your answer is correct.
The correct answer is: management training.
Question 4
Correct
Mark: 3.00 out of 3.00
Tucker, Inc. collected the following production data for the past month:
Units Produced: 1,600 | Total Cost: $22,000
Units Produced: 1,300 | Total Cost: $19,000
Units Produced: 1,500 | Total Cost: $22,500
Units Produced: 1,100 | Total Cost: $16,500
If the high-low method is used, what is the monthly total cost equation?
Select one:
a. Total cost = $5,500 + $10/unit
b. Total cost = $0 + $15/unit
c. Total cost = $4,400 + $11/unit
d. Total cost = $3,300 + $12/unit
Your answer is correct.
The correct answer is: Total cost = $4,400 + $11/unit.
Question 5
Correct
Mark: 3.00 out of 3.00
Question 6
Correct
Mark: 3.00 out of 3.00
Roddy Company has the following cost formulas for overhead:
Indirect materials: $2,000 + $0.40/machine hour
Maintenance: $1,500 + $0.60/machine hour
Machine setup: $0.30/machine hour
Utilities: $200 + $0.10/machine hour
Depreciation: $800
526 at the University of
Louisiana, Lafayette
,Question 1
Correct
Mark: 3.00 out of 3.00
Started on Tuesday, 10 October 2017, 8:42 PM
Completed on Tuesday, 10 October 2017, 10:42 PM
Time taken: 2 hours
Grade: 153.00 out of 180.00 (85%)
Overhead costs are allocated to production using an overhead application rate, while direct
materials and direct labor costs are not assigned using such a rate. The reason for this difference
is:
Select one:
a. Overhead is an indirect cost that cannot be easily and directly traced to specific units of
product.
b. Independent of both the number and type of products manufactured and also independent of
the amount of overhead costs incurred.
c. Traceable directly to the products manufactured but independent of the amount of overhead
costs incurred.
d. Independent of the type and number of units manufactured but a causal factor in the amount of
overhead cost incurred.
Your answer is correct.
The correct answer is: overhead is an indirect cost which cannot be traced easily and directly
to specific units of product.
Question 2
Correct
Mark: 3.00 out of 3.00
Question 3
Correct
Mark: 3.00 out of 3.00
An advantage of using regression analysis over the high-low and scattergraph methods is that:
Select one:
a. Neither: regression analysis is less costly to implement than high-low or scattergraph methods
or is a more precise approach than the high-low or scattergraph methods.
b. Regression analysis is less costly to implement than high-low or scattergraph methods.
c. Regression analysis is a more precise approach than the high-low or scattergraph methods.
d. Both: regression analysis is less costly to implement than high-low or scattergraph methods
and is a more precise approach than the high-low or scattergraph methods.
Your answer is correct.
The correct answer is: regression analysis is a more precise approach than the high-low or
scattergraph methods.
, An example of a discretionary fixed cost is:
Select one:
a. Depreciation of buildings and equipment.
b. Insurance.
c. Management training.
d. Taxes on real estate.
Your answer is correct.
The correct answer is: management training.
Question 4
Correct
Mark: 3.00 out of 3.00
Tucker, Inc. collected the following production data for the past month:
Units Produced: 1,600 | Total Cost: $22,000
Units Produced: 1,300 | Total Cost: $19,000
Units Produced: 1,500 | Total Cost: $22,500
Units Produced: 1,100 | Total Cost: $16,500
If the high-low method is used, what is the monthly total cost equation?
Select one:
a. Total cost = $5,500 + $10/unit
b. Total cost = $0 + $15/unit
c. Total cost = $4,400 + $11/unit
d. Total cost = $3,300 + $12/unit
Your answer is correct.
The correct answer is: Total cost = $4,400 + $11/unit.
Question 5
Correct
Mark: 3.00 out of 3.00
Question 6
Correct
Mark: 3.00 out of 3.00
Roddy Company has the following cost formulas for overhead:
Indirect materials: $2,000 + $0.40/machine hour
Maintenance: $1,500 + $0.60/machine hour
Machine setup: $0.30/machine hour
Utilities: $200 + $0.10/machine hour
Depreciation: $800
