ACC 241 Exam 1(100% Accurate)
Planning, directing, and controlling are a manager's three primary responsibilities -
ANSWERSTrue
In the manufacturing firm, manufacturing costs and product costs are the same -
ANSWERSTrue
If the finished goods inventory decreases between the beginning and the end of a
period, then the cost of goods manufactured for the period is larger than the cost of
goods sold - ANSWERSFalse
A plant-wide overhead rate is calculated by dividing the estimated total manufacturing
overhead costs for the year by estimated total amount of the allocation base for the year
- ANSWERSTrue
Claire Corporation allocates (applies) Overhead based on direct labor hours. Here is
selected data from the Jacob Corporation:
Estimated MOH = $500,000
Actual MOH = $480,000
Estimated Direct Labor hours = 50,000
Actual DL hours = 55,000
Since actual MOH is $20,000 less than estimated MOH, then overhead must have been
over-allocated by $20,000 - ANSWERSFalse
-----
Applied Overhead = $500,000 Est. MOH / 50,000 Est. DLH = $10/DLH (PDOR)
$10 PDOR * 55,000 actual DLH = $550,000 Applied
Actual MOH - Applied MOH
$480,000 - $550,000
= $70,000 OVER-applied
Choosing the method of allocating costs to products (i.e., plant-wide vs. ABC) can have
an impact on the total manufacturing costs - ANSWERSFalse
-----
Direct Costs do not change, MOH potentially change at individual product level but not
overall
Traditional overhead allocation methods the use unit-based cost drivers are never
accurate - ANSWERSFalse
Cost distortion occurs when products are overcosted while other products are
undercoated by the cost allocation system - ANSWERSTrue
As output decreases, fixed costs per unit will also decrease - ANSWERSFalse
, The relevant range is the range of activity for which the assumed cost relationships are
valid - ANSWERSTrue
Sunnybrook Orange Groves processes a variety of fresh juices. The company has the
following expenses for July:
Depreciation on bottling machines = $63,000
Glass juice bottles = $54,000
Commissions for salespeople = $27,000
Salaries of nutrition researchers = $89,000
Costs of maintaining website used for customer orders = $4,000
Wages of factory workers = $75,000
Freshness seals/caps for juice bottles = $3,000
Reconfiguring the factory layout = $102,000
Customer help line = $2,000
Costs of refrigerated trucks used to deliver juice = $17,000
What is the total cost for the production category (manufacturing costs) of the value
chain? - ANSWERS$195,000
---------
$75,000+$3000+$63,000+$54,000 = $195,000
Products and their costs flow through a production facility in the following order:
A. raw materials, finished goods, work-in-process, cost of goods sold
B. work-in-process, raw materials, cost of goods sold, finished goods
C. Raw materials, work-in-process, finished goods, cost of goods sold
D. finished goods, work-in-process, cost of goods sold - ANSWERSC. raw materials,
work-in-process, finished goods, cost of goods sold
Which of the following is NOT true about cost of goods manufactured?
A. includes some costs incurred during the period
B. shows total cost of items completed during the period
C. includes some costs incurred in prior periods
D. includes only current period costs - ANSWERSD. includes only current period costs
When is the predetermined manufacturing overhead rate computed? -
ANSWERSbefore the period starts
Direct materials cost = $35,000
Direct labor hours = 6,000
Direct labor costs = $30,000
Actual MOH = $25,000
Machine hours worked = 3,000
Given this information, if manufacturing overhead is applied (allocated) at the rate of
80% of direct labor cost, overhead for August is: - ANSWERS$1,000 underapplied
-----------
Applied MOH: $30,000 * 0.8 = $24,000
Planning, directing, and controlling are a manager's three primary responsibilities -
ANSWERSTrue
In the manufacturing firm, manufacturing costs and product costs are the same -
ANSWERSTrue
If the finished goods inventory decreases between the beginning and the end of a
period, then the cost of goods manufactured for the period is larger than the cost of
goods sold - ANSWERSFalse
A plant-wide overhead rate is calculated by dividing the estimated total manufacturing
overhead costs for the year by estimated total amount of the allocation base for the year
- ANSWERSTrue
Claire Corporation allocates (applies) Overhead based on direct labor hours. Here is
selected data from the Jacob Corporation:
Estimated MOH = $500,000
Actual MOH = $480,000
Estimated Direct Labor hours = 50,000
Actual DL hours = 55,000
Since actual MOH is $20,000 less than estimated MOH, then overhead must have been
over-allocated by $20,000 - ANSWERSFalse
-----
Applied Overhead = $500,000 Est. MOH / 50,000 Est. DLH = $10/DLH (PDOR)
$10 PDOR * 55,000 actual DLH = $550,000 Applied
Actual MOH - Applied MOH
$480,000 - $550,000
= $70,000 OVER-applied
Choosing the method of allocating costs to products (i.e., plant-wide vs. ABC) can have
an impact on the total manufacturing costs - ANSWERSFalse
-----
Direct Costs do not change, MOH potentially change at individual product level but not
overall
Traditional overhead allocation methods the use unit-based cost drivers are never
accurate - ANSWERSFalse
Cost distortion occurs when products are overcosted while other products are
undercoated by the cost allocation system - ANSWERSTrue
As output decreases, fixed costs per unit will also decrease - ANSWERSFalse
, The relevant range is the range of activity for which the assumed cost relationships are
valid - ANSWERSTrue
Sunnybrook Orange Groves processes a variety of fresh juices. The company has the
following expenses for July:
Depreciation on bottling machines = $63,000
Glass juice bottles = $54,000
Commissions for salespeople = $27,000
Salaries of nutrition researchers = $89,000
Costs of maintaining website used for customer orders = $4,000
Wages of factory workers = $75,000
Freshness seals/caps for juice bottles = $3,000
Reconfiguring the factory layout = $102,000
Customer help line = $2,000
Costs of refrigerated trucks used to deliver juice = $17,000
What is the total cost for the production category (manufacturing costs) of the value
chain? - ANSWERS$195,000
---------
$75,000+$3000+$63,000+$54,000 = $195,000
Products and their costs flow through a production facility in the following order:
A. raw materials, finished goods, work-in-process, cost of goods sold
B. work-in-process, raw materials, cost of goods sold, finished goods
C. Raw materials, work-in-process, finished goods, cost of goods sold
D. finished goods, work-in-process, cost of goods sold - ANSWERSC. raw materials,
work-in-process, finished goods, cost of goods sold
Which of the following is NOT true about cost of goods manufactured?
A. includes some costs incurred during the period
B. shows total cost of items completed during the period
C. includes some costs incurred in prior periods
D. includes only current period costs - ANSWERSD. includes only current period costs
When is the predetermined manufacturing overhead rate computed? -
ANSWERSbefore the period starts
Direct materials cost = $35,000
Direct labor hours = 6,000
Direct labor costs = $30,000
Actual MOH = $25,000
Machine hours worked = 3,000
Given this information, if manufacturing overhead is applied (allocated) at the rate of
80% of direct labor cost, overhead for August is: - ANSWERS$1,000 underapplied
-----------
Applied MOH: $30,000 * 0.8 = $24,000
