{"id":200933,"date":"2018-09-13T22:23:23","date_gmt":"2018-09-13T22:23:23","guid":{"rendered":"http:\/\/localhost\/wordpress\/index.php\/2018\/09\/13\/acct-434-final-exam-set-1\/"},"modified":"2018-10-24T08:55:58","modified_gmt":"2018-10-24T08:55:58","slug":"acct-434-final-exam-set-1","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/acct-434-final-exam-set-1\/","title":{"rendered":"ACCT 434 Final Exam Set 1"},"content":{"rendered":"<p>ACC\u00a0434\u00a0Final\u00a0Exam\t1.\u00a0(TCO\u00a01)\u00a0Evaluating\u00a0customer\u00a0reaction\u00a0of\u00a0the\u00a0trade-off\u00a0of\u00a0giving\u00a0up\u00a0some\u00a0features\u00a0of\u00a0a\u00a0product\u00a0for\u00a0a\u00a0lower\u00a0price\u00a0would\u00a0best\u00a0fit\u00a0which\u00a0category\u00a0of\u00a0management\u00a0decisions\u00a0under\u00a0activity-based\u00a0management?\u00a0(Points:\u00a05)\t\u00a0\t2.\u00a0(TCO\u00a01)\u00a0Danielle\u00a0Company\u00a0produces\u00a0a\u00a0special\u00a0spray\u00a0nozzle.\u00a0The\u00a0budgeted\u00a0indirect\u00a0total\u00a0cost\u00a0of\u00a0inserting\u00a0the\u00a0spray\u00a0nozzle\u00a0is\u00a0$180,000.\u00a0The\u00a0budgeted\u00a0number\u00a0of\u00a0nozzles\u00a0to\u00a0be\u00a0inserted\u00a0is\u00a060,000.\u00a0What\u00a0is\u00a0the\u00a0budgeted\u00a0indirect\u00a0cost\u00a0allocation\u00a0rate\u00a0for\u00a0this\u00a0activity?\u00a0(Points:\u00a05)\t3.\u00a0(TCO\u00a02)\u00a0Fixed\u00a0overhead\u00a0costs\u00a0include:\u00a0(Points:\u00a05)\t\u00a04.\u00a0(TCO\u00a02)\u00a0Information\u00a0pertaining\u00a0to\u00a0Brenton\u00a0Corporation&#8217;s\u00a0sales\u00a0revenue\u00a0is\u00a0presented\u00a0in\u00a0the\u00a0following\u00a0table:\u00a0\t 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timated\u00a0total\u00a0setup\u00a0cost\u00a0for\u00a0the\u00a0flag\u00a0displays\u00a0for\u00a0the\u00a0coming\u00a0year\u00a0is\u00a0(Points:\u00a05)\t(TCO\u00a05)\u00a0Robert&#8217;s\u00a0Medical\u00a0Equipment\u00a0Company\u00a0manufactures\u00a0hospital\u00a0beds.\u00a0Its\u00a0most\u00a0popular\u00a0model,\u00a0Deluxe,\u00a0sells\u00a0for\u00a0$5,000.\u00a0It\u00a0has\u00a0variable\u00a0costs\u00a0totaling\u00a0$2,800\u00a0and\u00a0fixed\u00a0costs\u00a0of\u00a0$1,000\u00a0per\u00a0unit,\u00a0based\u00a0on\u00a0an\u00a0average\u00a0production\u00a0run\u00a0of\u00a05,000\u00a0units.\u00a0It\u00a0normally\u00a0has\u00a0four\u00a0production\u00a0runs\u00a0a\u00a0year,\u00a0with\u00a0$400,000\u00a0in\u00a0setup\u00a0costs\u00a0each\u00a0time.\u00a0Plant\u00a0capacity\u00a0can\u00a0handle\u00a0up\u00a0to\u00a0six\u00a0runs\u00a0a\u00a0year\u00a0for\u00a0a\u00a0total\u00a0of\u00a030,000\u00a0beds.\tA\u00a0competitor\u00a0is\u00a0introducing\u00a0a\u00a0new\u00a0hospital\u00a0bed\u00a0similar\u00a0to\u00a0Deluxe\u00a0that\u00a0will\u00a0sell\u00a0for\u00a0$4,000.\u00a0Management\u00a0believes\u00a0it\u00a0must\u00a0lower\u00a0the\u00a0price\u00a0to\u00a0compete.\u00a0Marketing\u00a0believes\u00a0that\u00a0the\u00a0new\u00a0price\u00a0will\u00a0increase\u00a0sales\u00a0by\u00a025%\u00a0a\u00a0year.\u00a0The\u00a0plant\u00a0manager\u00a0thinks\u00a0that\u00a0production\u00a0can\u00a0increase\u00a0by\u00a025%\u00a0with\u00a0the\u00a0same\u00a0level\u00a0of\u00a0fixed\u00a0costs.\u00a0The\u00a0company\u00a0currently\u00a0sells\u00a0all\u00a0the\u00a0Deluxe\u00a0beds\u00a0it\u00a0can\u00a0produce.\tQuestion\u00a01:\u00a0\u00a0What\u00a0is\u00a0the\u00a0annual\u00a0operating\u00a0income\u00a0from\u00a0Deluxe\u00a0at\u00a0the\u00a0current\u00a0price\u00a0of\u00a0$5,000?\tQuestion\u00a02:\u00a0\u00a0What\u00a0is\u00a0the\u00a0annual\u00a0operating\u00a0income\u00a0from\u00a0Deluxe\u00a0if\u00a0the\u00a0price\u00a0is\u00a0reduced\u00a0to\u00a0$4,000\u00a0and\u00a0sales\u00a0in\u00a0units\u00a0increase\u00a0by\u00a025%?\tSales\u00a0(25,000\u00a0x\u00a0$4,000) 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\ufffd\u00a0\u00a0Sixteen\u00a0times\u00a0each\u00a0year,\u00a0a\u00a0new\u00a0card\u00a0design\u00a0will\u00a0be\u00a0put\u00a0into\u00a0production.\u00a0Each\u00a0new\u00a0design\u00a0will\u00a0require\u00a0\u00a0$600\u00a0in\u00a0setup\u00a0costs.\t4.\u00a0(TCO\u00a08)\u00a0Sportswear\u00a0Company\u00a0manufactures\u00a0socks.\u00a0The\u00a0Athletic\u00a0Division\u00a0sells\u00a0its\u00a0socks\u00a0for\u00a0$6\u00a0a\u00a0pair\u00a0to\u00a0outsiders.\u00a0Socks\u00a0have\u00a0manufacturing\u00a0costs\u00a0of\u00a0$2.50\u00a0each\u00a0for\u00a0variable\u00a0and\u00a0$1.50\u00a0for\u00a0fixed.\u00a0The\u00a0division&#8217;s\u00a0total\u00a0fixed\u00a0manufacturing\u00a0costs\u00a0are\u00a0$105,000\u00a0at\u00a0the\u00a0normal\u00a0volume\u00a0of\u00a070,000\u00a0units.\u00a0\tThe\u00a0European\u00a0Division\u00a0has\u00a0offered\u00a0to\u00a0buy\u00a015,000\u00a0socks\u00a0at\u00a0the\u00a0full\u00a0cost\u00a0of\u00a0$4.\u00a0The\u00a0Athletic\u00a0Division\u00a0has\u00a0excess\u00a0capacity\u00a0and\u00a0the\u00a015,000\u00a0units\u00a0can\u00a0be\u00a0produced\u00a0without\u00a0interfering\u00a0with\u00a0the\u00a0current\u00a0outside\u00a0sales\u00a0of\u00a070,000.\u00a0The\u00a085,000\u00a0volume\u00a0is\u00a0within\u00a0the\u00a0division&#8217;s\u00a0relevant\u00a0operating\u00a0range.\u00a0\tExplain\u00a0whether\u00a0the\u00a0Athletic\u00a0Division\u00a0should\u00a0accept\u00a0the\u00a0offer.\u00a0\u00a0Support\u00a0your\u00a0decision\u00a0showing\u00a0all\u00a0calculations.\t(Points:\u00a025)\tQuestion\u00a01.\u00a01.\u00a0(TCO\u00a02)\u00a0Russell\u00a0Company\u00a0has\u00a0the\u00a0following\u00a0projected\u00a0account\u00a0balances\u00a0for\u00a0June\u00a030,\u00a020X9:\u2026..Prepare\u00a0a\u00a0budgeted\u00a0income\u00a0statement\u00a0AND\u00a0a\u00a0budgeted\u00a0balance\u00a0sheet\u00a0as\u00a0of\u00a0June\u00a030,\u00a020X9.\u00a0Russell\u00a0Company\tIncome\u00a0Statement\tQuestion\u00a02.\u00a02.\u00a0(TCO\u00a05)\u00a0Steven&#8217;s\u00a0Medical\u00a0Equipment\u00a0Company\u00a0manufactures\u00a0hospital\u00a0beds.\u00a0Its\u00a0most\u00a0\u00a0popular\u00a0model,\u00a0Deluxe,\u00a0sells\u00a0for\u00a0$5,000.\u00a0It\u00a0has\u00a0variable\u00a0costs\u00a0totaling\u00a0$2,800\u00a0and\u00a0fixed\u00a0costs\u00a0of\u00a0$1,000\u00a0\u00a0per\u00a0unit,\u00a0based\u00a0on\u00a0an\u00a0average\u00a0production\u00a0run\u00a0of\u00a05,000\u00a0units.\u00a0It\u00a0normally\u00a0has\u00a0four\u00a0production\u00a0runs\u00a0a\u00a0year,\u00a0with\u00a0$600,000\u00a0in\u00a0setup\u00a0costs\u00a0each\u00a0time.\u00a0Plant\u00a0capacity\u00a0can\u00a0handle\u00a0up\u00a0to\u00a0six\u00a0runs\u00a0a\u00a0year\u00a0for\u00a0a\u00a0total\u00a0of\u00a030,000\u00a0beds.\u00a0A\u00a0competitor\u00a0is\u00a0introducing\u00a0a\u00a0new\u00a0hospital\u00a0bed\u00a0similar\u00a0\u2026\u2026..?\u00a0(Points\u00a0:\u00a025)\t\u00a0\tQuestion\u00a03.\u00a03.\u00a0(TCO\u00a07)\u00a0Dulce\u00a0Greeting\u00a0Cards\u00a0Incorporated\u00a0is\u00a0starting\u00a0a\u00a0new\u00a0business\u00a0venture\u00a0and\u00a0is\u00a0in\u00a0the\u00a0process\u00a0of\u00a0evaluating\u00a0its\u00a0product\u00a0lines.\u00a0Information\u00a0for\u00a0one\u00a0new\u00a0product,\u00a0traditional\u00a0parchment\u00a0grade\u00a0cards,\u00a0is\u00a0as\u00a0follows:\u00a0\u2219\u00a0For\u00a016\u00a0times\u00a0each\u00a0year,\u00a0a\u00a0new\u00a0card\u00a0design\u00a0will\u00a0be\u00a0put\u00a0into\u00a0production.\u00a0Each\u00a0new\u00a0design\u00a0will\u00a0require\u00a0$300\u00a0in\u00a0setup\u00a0costs.\u00a0\u2219\u00a0The\u00a0parchment\u00a0grade\u00a0card\u00a0product\u00a0line\u00a0incurred\u00a0$75,000\u00a0in\u00a0development\u00a0costs\u00a0and\u00a0is\u00a0expected\u00a0to\u00a0be\u00a0produced\u00a0over\u00a0the\u00a0next\u00a0four\u00a0years.\u00a0\u2026\u2026\u2026\u2026\u2026\u00a0(Points\u00a0:\u00a025)\u00a0\tQuestion\u00a04.\u00a04.\u00a0(TCO\u00a08)\u00a0Novacar\u00a0Company\u00a0manufactures\u00a0automobiles.\u00a0The\u00a0red\u00a0car\u00a0division\u00a0sells\u00a0its\u00a0red\u00a0cars\u00a0for\u00a0$25,000\u00a0each\u00a0to\u00a0the\u00a0general\u00a0public.\u00a0The\u00a0red\u00a0cars\u00a0have\u00a0manufacturing\u00a0costs\u00a0of\u00a0$12,500\u00a0each\u00a0for\u00a0variable\u00a0and\u00a0$5,000\u00a0each\u00a0for\u00a0fixed\u00a0costs.\u00a0The\u00a0division&#8217;s\u00a0total\u00a0fixed\u00a0manufacturing\u00a0costs\u00a0are\u00a0$25,000,000\u00a0at\u00a0the\u00a0normal\u00a0volume\u00a0of\u00a05,000\u00a0units\u2026\u2026\u2026\u2026\u2026.\u00a0(Points\u00a0:\u00a025)\t\u00a0\tQuestion\u00a05.\u00a05.\u00a0(TCO\u00a011)\u00a0For\u00a0supply\u00a0item\u00a0LK,\u00a0Boatman\u00a0Company\u00a0has\u00a0been\u00a0ordering\u00a0125\u00a0units\u00a0based\u00a0on\u00a0the\u00a0recommendation\u00a0of\u00a0the\u00a0salesperson\u00a0who\u00a0calls\u00a0on\u00a0the\u00a0company\u00a0monthly.\u00a0The\u00a0company\u00a0has\u00a0hired\u00a0a\u00a0new\u00a0purchasing\u00a0agent,\u00a0who\u00a0wants\u00a0to\u00a0start\u00a0using\u00a0the\u00a0economic-order-quantity\u00a0method\u00a0and\u00a0its\u00a0supporting\u00a0decision\u00a0elements.\u00a0She\u00a0has\u00a0gathered\u00a0the\u00a0following\u00a0information:\u2026\u2026Determine\u00a0the\u00a0EOQ,\u00a0average\u00a0inventory,\u00a0orders\u00a0per\u00a0year,\u00a0average\u00a0daily\u00a0demand,\u00a0reorder\u00a0point,\u00a0annual\u00a0ordering\u00a0costs,\u00a0and\u00a0annual\u00a0carrying\u00a0costs.\u00a0(Points\u00a0:\u00a025)\tRussell.Company.has.the.following.projected.account.balances.for.June.30,.20X5:\u00a0Accounts\u00a0payable\u00a0$40,000\u00a0Sales\u00a0$800,000\u00a0Accounts\u00a0receivable\u00a0$100,000\u00a0Capital\u00a0stock\u00a0$400,000\u00a0Depreciation,\u00a0factory\u00a0$24,000\u00a0Retained\u00a0earnings\u00a0?\u00a0Inventories\u00a0(5\/31\u00a0&#038;\u00a06\/30)\u00a0$180,000\u00a0Cash\u00a0$56,000\u00a0Direct\u00a0materials\u00a0used\u00a0$200,000\u00a0Equipment,\u00a0net\u00a0$240,000\u00a0Office\u00a0salaries\u00a0$80,000\u00a0Buildings,\u00a0net\u00a0$400,000\u00a0Insurance,\u00a0factory\u00a0$4,000\u00a0Utilities,\u00a0factory\u00a0$16,000\u00a0Plant\u00a0wages\u00a0$140,000\u00a0Selling\u00a0expenses\u00a0$60,000\u00a0Bonds\u00a0payable\u00a0$160,000\u00a0Maintenance,\u00a0factory\u00a0$28,000\u00a0Required\u00a0a..\u00a0Prepare.a.budgeted.income.statement.for.June.20X5.\u00a0b..\u00a0Prepare.a.budgeted.balance.sheet.as.of.June.30,.20X5.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ACC\u00a0434\u00a0Final\u00a0Exam 1.\u00a0(TCO\u00a01)\u00a0Evaluating\u00a0customer\u00a0reaction\u00a0of\u00a0the\u00a0trade-off\u00a0of\u00a0giving\u00a0up\u00a0some\u00a0features\u00a0of\u00a0a\u00a0product\u00a0for\u00a0a\u00a0lower\u00a0price\u00a0would\u00a0best\u00a0fit\u00a0which\u00a0category\u00a0of\u00a0management\u00a0decisions\u00a0under\u00a0activity-based\u00a0management?\u00a0(Points:\u00a05) \u00a0 2.\u00a0(TCO\u00a01)\u00a0Danielle\u00a0Company\u00a0produces\u00a0a\u00a0special\u00a0spray\u00a0nozzle.\u00a0The\u00a0budgeted\u00a0indirect\u00a0total\u00a0cost\u00a0of\u00a0inserting\u00a0the\u00a0spray\u00a0nozzle\u00a0is\u00a0$180,000.\u00a0The\u00a0budgeted\u00a0number\u00a0of\u00a0nozzles\u00a0to\u00a0be\u00a0inserted\u00a0is\u00a060,000.\u00a0What\u00a0is\u00a0the\u00a0budgeted\u00a0indirect\u00a0cost\u00a0allocation\u00a0rate\u00a0for\u00a0this\u00a0activity?\u00a0(Points:\u00a05) 3.\u00a0(TCO\u00a02)\u00a0Fixed\u00a0overhead\u00a0costs\u00a0include:\u00a0(Points:\u00a05) \u00a04.\u00a0(TCO\u00a02)\u00a0Information\u00a0pertaining\u00a0to\u00a0Brenton\u00a0Corporation&#8217;s\u00a0sales\u00a0revenue\u00a0is\u00a0presented\u00a0in\u00a0the\u00a0following\u00a0table:\u00a0 \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0February \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0March \ufffd \ufffd \ufffdApril \u00a0\u00a0\u00a0re\u00a0collectible,\u00a060%\u00a0are\u00a0collected\u00a0in\u00a0the\u00a0month\u00a0of\u00a0sale\u00a0and\u00a0the\u00a0remainder\u00a0in\u00a0the\u00a0month\u00a0following\u00a0the\u00a0sale.\u00a0\u00a0Cost\u00a0of\u00a0purchases\u00a0of\u00a0inventory\u00a0each\u00a0month\u00a0are\u00a070%\u00a0of\u00a0the\u00a0next\u00a0month&#8217;s\u00a0projected\u00a0total\u00a0sales.\u00a0\u00a0All\u00a0purchases\u00a0of\u00a0inventory\u00a0are\u00a0on\u00a0account;\u00a025%\u00a0are\u00a0paid\u00a0in\u00a0the\u00a0month\u00a0of\u00a0purchase,\u00a0and\u00a0the\u00a0remainder\u00a0is\u00a0paid\u00a0in\u00a0the\u00a0month\u00a0following\u00a0the\u00a0purchase. Brenton&#8217;s\u00a0budgeted\u00a0total\u00a0cash\u00a0receipts\u00a0in\u00a0April\u00a0are (Points:\u00a05) \u00a0 5.\u00a0(TCO\u00a02)\u00a0Financing\u00a0decisions\u00a0PRIMARILY\u00a0deal\u00a0with:\u00a0(Points:\u00a05) \u00a0 6.\u00a0(TCO\u00a03)\u00a0The\u00a0cost\u00a0components\u00a0of\u00a0an\u00a0air\u00a0conditioner\u00a0include\u00a0$35\u00a0for\u00a0the\u00a0compressor,\u00a0$11.50\u00a0for\u00a0the\u00a0sheet\u00a0molded\u00a0compound\u00a0frame,\u00a0and\u00a0$80\u00a0per\u00a0unit\u00a0for\u00a0assembly.\u00a0The\u00a0factory\u00a0machines\u00a0and\u00a0tools\u00a0cost\u00a0is\u00a0$55,000.\u00a0The\u00a0company\u00a0expects\u00a0to\u00a0produce\u00a01,500\u00a0air\u00a0conditioners\u00a0in\u00a0the\u00a0coming\u00a0year.\u00a0What\u00a0cost\u00a0function\u00a0best\u00a0represents\u00a0these\u00a0costs?\u00a0(Points:\u00a05) \u00a0 7.\u00a0(TCO\u00a03)\u00a0Which\u00a0cost\u00a0estimation\u00a0method\u00a0may\u00a0use\u00a0time-and-motion\u00a0studies\u00a0to\u00a0analyze\u00a0the\u00a0relationship\u00a0between\u00a0inputs\u00a0and\u00a0outputs\u00a0in\u00a0physical\u00a0terms?\u00a0(Points:\u00a05) \u00a0 8.\u00a0(TCO\u00a04)\u00a0Sunk\u00a0costs \u00a0 \u00a09.\u00a0(TCO\u00a05)\u00a0Throughput\u00a0contribution\u00a0equals\u00a0revenues\u00a0minus:\u00a0(Points:\u00a05) \u00a0 10.\u00a0(TCO\u00a05)\u00a0Keeping\u00a0the\u00a0bottleneck\u00a0operation\u00a0busy\u00a0and\u00a0subordinating\u00a0all\u00a0nonbottleneck\u00a0operations\u00a0to\u00a0the\u00a0bottleneck\u00a0operation\u00a0involves:\u00a0(Points:\u00a05) \u00a0 11.\u00a0(TCO\u00a06)\u00a0What\u00a0type\u00a0of\u00a0cost\u00a0is\u00a0the\u00a0result\u00a0of\u00a0an\u00a0event\u00a0that\u00a0results\u00a0in\u00a0more\u00a0than\u00a0one\u00a0product\u00a0or\u00a0service\u00a0simultaneously\u00a0(Points:\u00a05) \u00a0 12.\u00a0(TCO\u00a06)\u00a0Which\u00a0of\u00a0the\u00a0following\u00a0is\u00a0a\u00a0disadvantage\u00a0of\u00a0the\u00a0physical-measure\u00a0method\u00a0of\u00a0allocating\u00a0joint\u00a0costs?\u00a0(Points:\u00a05) \u00a0 13.\u00a0(TCO\u00a07)\u00a0Life-cycle\u00a0costing\u00a0is\u00a0the\u00a0name\u00a0given\u00a0to:\u00a0(Points:\u00a05) <a href=\"https:\/\/www.benedictsol.com\/blogs\/acct-434-final-exam-set-1\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-200933","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200933","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=200933"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200933\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=200933"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=200933"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=200933"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}