ACCT 505 Managerial Accounting Final Exam 2022

ACCT 505 Managerial Accounting Final Exam 2022 1. (TCO F) Sandler Corporation bases its predetermined overhead rate on the estimated machine hours for the upcoming year. Data for the upcoming year appear below. Estimated machine hours 73,000 Estimated variable manufacturing overhead $3.49 per machine hour Estimated total fixed manufacturing overhead $838,770 Required: Compute the company's predetermined overhead rate. (Points : 25) Answer Computer Overhead Rate Fixed Manuf OH Var Manuf OH (3.46x73000) Per Direct Lab H 3.46 Direct Lab Hours 73000 Est Manuf OH (+) Direct Lab Hours 73000 OH Rate 14.95 (/73000) 2. (TCO C) Enciso Corporation is preparing its cash budget for November. The budgeted beginning cash balance is $31,000. Budgeted cash receipts total $135,000 and budgeted cash disbursements total $141,000. The desired ending cash balance is $50,000. The company can borrow up to $100,000 at any time from a local bank, with interest not due until the following month. Required: Prepare the company's cash budget for November in good form. (Points : 25) Answer Cash Budget for November Beginning Cash balance $31,000.00 Cash Receipts $135,000.00 Total Cash Available $166,000.00 (31000+) Less: Cash Disbursement $141,000.00 Excess Cash $25,000.00 (-) Borrow $25,000.00 () Cash Ending $50,000.00 1. (TCO C) The following overhead data are for a department of a large company. Activity level (in units) Actual Costs Incurred 500 Static Budget 450 Variable costs: Indirect materials $5,950 $5,382 Electricity $1,112 $1,008 Fixed costs: Administration $2,770 $2,800 Rent $5,120 $5,100 Required: Construct a flexible budget performance report that would be useful in assessing how well costs were controlled in this department. (Points : 30) Answer Department of a large company Flexible Budget Performance Report Activity level (in units) Variable costs: Actual costs incurred 500 Flexible budget 500 Variance Indirect materials $5,950 5,980 $30 F Electricity 1,112 1,120 $8 F Total variable costs $7,062 $7,100 Fixed Costs: Administration 2,770 2,800 $30 F Rent 5,120 5,100 -$20 U Total fixed costs 7,890 7,900 Total costs $14,952 $15,000 $48 F double check $48 Actual activity level (units) 500 Static budget 450