{"id":200936,"date":"2018-09-13T22:23:24","date_gmt":"2018-09-13T22:23:24","guid":{"rendered":"http:\/\/localhost\/wordpress\/index.php\/2018\/09\/13\/acct-434-midterm-exam-new\/"},"modified":"2018-10-24T09:00:45","modified_gmt":"2018-10-24T09:00:45","slug":"acct-434-midterm-exam-new","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/acct-434-midterm-exam-new\/","title":{"rendered":"ACCT 434 Midterm Exam (New)"},"content":{"rendered":"<p>Multiple\u00a0Choice 10 9\tEssay 4\t\u00a0\u00a0\tQuestion\u00a01. Question\u00a0: (TCO\u00a01)\u00a0Which\u00a0of\u00a0the\u00a0following\u00a0is\u00a0a\u00a0sign\u00a0that\u00a0an\u00a0ABC\u00a0system\u00a0may\u00a0be\u00a0useful?\tQuestion\u00a02. Question\u00a0: (TCO\u00a01)\u00a0Merriamn\u00a0Company\u00a0provides\u00a0the\u00a0following\u00a0ABC\u00a0costing\u00a0information:\tActivities Total\u00a0Costs Activity-cost\u00a0drivers\tAccount\u00a0inquiry\u00a0hours $400,000 10,000\u00a0hours\tAccount\u00a0billing\u00a0lines $280,000 4,000,000\u00a0lines\tAccount\u00a0verification\u00a0accounts $150,000 40,000\u00a0accounts\tCorrespondence\u00a0letters $\u00a050,000 4,000\u00a0letters\tTotal\u00a0costs $880,000 \u00a0\tHow\u00a0much\u00a0of\u00a0account\u00a0verification\u00a0costs\u00a0will\u00a0be\u00a0assigned\u00a0to\u00a0Department\u00a0A?\tQuestion\u00a03. Question\u00a0: (TCO\u00a02)\u00a0Budgeting\u00a0provides\u00a0all\u00a0of\u00a0the\u00a0following\u00a0EXCEPT\t\u00a0\tQuestion\u00a04. Question\u00a0: (TCO\u00a02)\u00a0White\u00a0planned\u00a0to\u00a0use\u00a0$82\u00a0of\u00a0material\u00a0per\u00a0unit\u00a0but\u00a0actually\u00a0used\u00a0$80\u00a0of\u00a0material\u00a0per\u00a0unit,\u00a0and\u00a0planned\u00a0to\u00a0make\u00a01,200\u00a0units\u00a0but\u00a0actually\u00a0made\u00a01,000\u00a0units.\u00a0\u00a0The\u00a0sales-volume\u00a0variance\u00a0is\t\u00a0\tQuestion\u00a05. Question\u00a0: (TCO\u00a03)\u00a0Which\u00a0cost\u00a0estimation\u00a0method\u00a0analyzes\u00a0accounts\u00a0in\u00a0the\u00a0subsidiary\u00a0ledger\u00a0as\u00a0variable,\u00a0fixed,\u00a0or\u00a0mixed\u00a0using\u00a0qualitative\u00a0methods?\t\u00a0\tQuestion\u00a06. Question\u00a0: (TCO\u00a04)\u00a0In\u00a0evaluating\u00a0different\u00a0alternatives,\u00a0it\u00a0is\u00a0useful\u00a0to\u00a0concentrate\u00a0on\t\u00a0\tQuestion\u00a07. Question\u00a0: (TCO\u00a05)\u00a0Which\u00a0of\u00a0the\u00a0following\u00a0is\u00a0a\u00a0relevant\u00a0cost\u00a0to\u00a0be\u00a0included\u00a0in\u00a0a\u00a0make-or-buy\u00a0decision?\t\u00a0\tQuestion\u00a08. Question\u00a0: (TCO\u00a05)\u00a0Konrade&#8217;s\u00a0Engine\u00a0Company\u00a0manufactures\u00a0part\u00a0TE456\u00a0used\u00a0in\u00a0several\u00a0of\u00a0its\u00a0engine\u00a0models.\u00a0\u00a0Monthly\u00a0production\u00a0costs\u00a0for\u00a01,000\u00a0units\u00a0are\u00a0as\u00a0follows: \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0\tDirect\u00a0materials \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd$40,000\tDirect\u00a0labor \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd10,000\tVariable\u00a0overhead\u00a0costs \ufffd \ufffd \ufffd \ufffd\u00a030,000\tFixed\u00a0overhead\u00a0costs \ufffd \ufffd \ufffd \ufffd \ufffd20,000\tTotal\u00a0costs \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0$100,000\tIt\u00a0is\u00a0estimated\u00a0that\u00a010%\u00a0of\u00a0the\u00a0fixed\u00a0overhead\u00a0costs\u00a0assigned\u00a0to\u00a0TE456\u00a0will\u00a0no\u00a0longer\u00a0be\u00a0incurred\u00a0if\u00a0the\u00a0company\u00a0purchases\u00a0TE456\u00a0from\u00a0the\u00a0outside\u00a0supplier.\u00a0\u00a0Konrade&#8217;s\u00a0Engine\u00a0Company\u00a0has\u00a0the\u00a0option\u00a0of\u00a0purchasing\u00a0the\u00a0part\u00a0from\u00a0an\u00a0outside\u00a0supplier\u00a0at\u00a0$85\u00a0per\u00a0unit.\tIf\u00a0Konrade&#8217;s\u00a0Engine\u00a0Company\u00a0accepts\u00a0the\u00a0offer\u00a0from\u00a0the\u00a0outside\u00a0supplier,\u00a0the\u00a0monthly\u00a0avoidable\u00a0costs\u00a0(costs\u00a0that\u00a0will\u00a0no\u00a0longer\u00a0be\u00a0incurred)\u00a0total\tQuestion\u00a09. Question\u00a0: (TCO\u00a03)\u00a0The\u00a0cost\u00a0function\u00a0y\u00a0=\u00a0100\u00a0+\u00a010X\t\u00a0\tQuestion\u00a010. Question\u00a0: (TCO\u00a04)\u00a0Opportunity\u00a0costs\tQuestion\u00a01. Question\u00a0: (TCO\u00a01)\u00a0For\u00a0each\u00a0of\u00a0the\u00a0following\u00a0activities,\u00a0identify\u00a0an\u00a0appropriate\u00a0activity-cost\u00a0driver.\ta. machine\u00a0maintenance\tb. machine\u00a0setup\tc. quality\u00a0control\u00a0material\u00a0ordering\td. production\u00a0scheduling\te. warehouse\u00a0expense\tf. engineering\u00a0design\tQuestion\u00a02. Question\u00a0: (TCO\u00a02)\u00a0Lubriderm\u00a0Corporation\u00a0has\u00a0the\u00a0following\u00a0budgeted\u00a0sales\u00a0for\u00a0the\u00a0next\u00a0six-month\u00a0period:\u00a0\t\u00a0\tMonth \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0Unit\u00a0Sales\t\u00a0\tThere\u00a0were\u00a030,000\u00a0units\u00a0of\u00a0finished\u00a0goods\u00a0in\u00a0inventory\u00a0at\u00a0the\u00a0beginning\u00a0of\u00a0June.\u00a0\u00a0Plans\u00a0are\u00a0to\u00a0have\u00a0an\u00a0inventory\u00a0of\u00a0finished\u00a0products\u00a0that\u00a0equal\u00a020%\u00a0of\u00a0the\u00a0unit\u00a0sales\u00a0for\u00a0the\u00a0next\u00a0month.\u00a0\tFive\u00a0pounds\u00a0of\u00a0materials\u00a0are\u00a0required\u00a0for\u00a0each\u00a0unit\u00a0produced.\u00a0\u00a0Each\u00a0pound\u00a0of\u00a0material\u00a0costs\u00a0$8.\u00a0\u00a0Inventory\u00a0levels\u00a0for\u00a0materials\u00a0are\u00a0equal\u00a0to\u00a030%\u00a0of\u00a0the\u00a0needs\u00a0for\u00a0the\u00a0next\u00a0month.\u00a0\u00a0Materials\u00a0inventory\u00a0on\u00a0June\u00a01\u00a0was\u00a015,000\u00a0pounds.\u00a0\tPrepare\u00a0production\u00a0budgets\u00a0in\u00a0units\u00a0for\u00a0July,\u00a0August,\u00a0and\u00a0September.\t\u00a0\tQuestion\u00a03. Question\u00a0: (TCO\u00a03)\u00a0As\u00a0part\u00a0of\u00a0his\u00a0job\u00a0as\u00a0cost\u00a0analyst,\u00a0Max\u00a0Thompson\u00a0collected\u00a0the\u00a0following\u00a0information\u00a0concerning\u00a0the\u00a0operations\u00a0of\u00a0the\u00a0Machining\u00a0Department: \ufffd \ufffd\u00a0\u00a0\u00a0\tObservation \ufffd \ufffd \ufffdMachine-hours \ufffd \ufffd\u00a0Total\u00a0Operating\u00a0Costs\tJanuary \ufffd \ufffd \ufffd \ufffd\u00a0\u00a04,000 \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0$45,000\tFebruary \ufffd \ufffd \ufffd \ufffd\u00a04,600 \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a049,500\tMarch \ufffd \ufffd \ufffd \ufffd \ufffd3,800 \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a045,750\tApril \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a04,400 \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a048,000\tMay \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a04,500 \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a049,800\t\u00a0\t\u00a0\tUse\u00a0the\u00a0high-low\u00a0method\u00a0to\u00a0determine\u00a0the\u00a0estimating\u00a0cost\u00a0function\u00a0with\u00a0machine-hours\u00a0as\u00a0the\u00a0cost\u00a0driver.\t\u00a0\tQuestion\u00a04. Question\u00a0: (TCO\u00a05)\u00a0Lewis\u00a0Auto\u00a0Company\u00a0manufactures\u00a0a\u00a0part\u00a0for\u00a0use\u00a0in\u00a0its\u00a0production\u00a0of\u00a0automobiles.\u00a0\u00a0When\u00a010,000\u00a0items\u00a0are\u00a0produced,\u00a0the\u00a0costs\u00a0per\u00a0unit\u00a0are:\u00a0\tDirect\u00a0materials \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd$12\tDirect\u00a0manufacturing\u00a0labor \ufffd \ufffd \ufffd60\tVariable\u00a0manufacturing\u00a0overhead \ufffd\u00a024\tFixed\u00a0manufacturing\u00a0overhead \ufffd \ufffd32\tTotal \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0$128\tMonty\u00a0Company\u00a0has\u00a0offered\u00a0to\u00a0sell\u00a0Lewis\u00a0Auto\u00a0Company\u00a010,000\u00a0units\u00a0of\u00a0the\u00a0part\u00a0for\u00a0$120\u00a0per\u00a0unit.\u00a0\u00a0The\u00a0plant\u00a0facilities\u00a0could\u00a0be\u00a0used\u00a0to\u00a0manufacture\u00a0another\u00a0part\u00a0at\u00a0a\u00a0savings\u00a0of\u00a0$180,000\u00a0if\u00a0Lewis\u00a0Auto\u00a0accepts\u00a0the\u00a0supplier&#8217;s\u00a0offer.\u00a0\u00a0In\u00a0addition,\u00a0$20\u00a0per\u00a0unit\u00a0of\u00a0fixed\u00a0manufacturing\u00a0overhead\u00a0on\u00a0the\u00a0original\u00a0part\u00a0would\u00a0be\u00a0eliminated.\tA. What\u00a0is\u00a0the\u00a0relevant\u00a0per\u00a0unit\u00a0cost\u00a0for\u00a0the\u00a0original\u00a0part?\tB. Which\u00a0alternative\u00a0is\u00a0best\u00a0for\u00a0Lewis\u00a0Auto\u00a0Company?\u00a0\u00a0By\u00a0how\u00a0much?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Multiple\u00a0Choice 10 9 Essay 4 \u00a0\u00a0 Question\u00a01. Question\u00a0: (TCO\u00a01)\u00a0Which\u00a0of\u00a0the\u00a0following\u00a0is\u00a0a\u00a0sign\u00a0that\u00a0an\u00a0ABC\u00a0system\u00a0may\u00a0be\u00a0useful? Question\u00a02. Question\u00a0: (TCO\u00a01)\u00a0Merriamn\u00a0Company\u00a0provides\u00a0the\u00a0following\u00a0ABC\u00a0costing\u00a0information: Activities Total\u00a0Costs Activity-cost\u00a0drivers Account\u00a0inquiry\u00a0hours $400,000 10,000\u00a0hours Account\u00a0billing\u00a0lines $280,000 4,000,000\u00a0lines Account\u00a0verification\u00a0accounts $150,000 40,000\u00a0accounts Correspondence\u00a0letters $\u00a050,000 4,000\u00a0letters Total\u00a0costs $880,000 \u00a0 How\u00a0much\u00a0of\u00a0account\u00a0verification\u00a0costs\u00a0will\u00a0be\u00a0assigned\u00a0to\u00a0Department\u00a0A? Question\u00a03. Question\u00a0: (TCO\u00a02)\u00a0Budgeting\u00a0provides\u00a0all\u00a0of\u00a0the\u00a0following\u00a0EXCEPT \u00a0 Question\u00a04. Question\u00a0: (TCO\u00a02)\u00a0White\u00a0planned\u00a0to\u00a0use\u00a0$82\u00a0of\u00a0material\u00a0per\u00a0unit\u00a0but\u00a0actually\u00a0used\u00a0$80\u00a0of\u00a0material\u00a0per\u00a0unit,\u00a0and\u00a0planned\u00a0to\u00a0make\u00a01,200\u00a0units\u00a0but\u00a0actually\u00a0made\u00a01,000\u00a0units.\u00a0\u00a0The\u00a0sales-volume\u00a0variance\u00a0is \u00a0 Question\u00a05. <a href=\"https:\/\/www.benedictsol.com\/blogs\/acct-434-midterm-exam-new\/\" 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-200936","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200936","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=200936"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200936\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=200936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=200936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=200936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}