{"id":47819,"date":"2022-04-02T02:59:41","date_gmt":"2022-04-02T02:59:41","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/exam-061400rr-cost-concepts-and-types-of-costing-questions-1-to\/"},"modified":"2022-04-02T02:59:41","modified_gmt":"2022-04-02T02:59:41","slug":"exam-061400rr-cost-concepts-and-types-of-costing-questions-1-to","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/exam-061400rr-cost-concepts-and-types-of-costing-questions-1-to\/","title":{"rendered":"exam: 061400rr – cost concepts and types of costing questions 1 to"},"content":{"rendered":"
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\u00a0<\/span><\/strong><\/p>\n

Exam: 061400RR – Cost Concepts and Types of Costing<\/span><\/strong><\/p>\n

Questions 1 to 20: <\/span><\/strong><\/p>\n

1. <\/span><\/strong>Given the cost formula, Y = $7,000 + $1.80X, what would be the total cost for an activity level of 4,000 <\/span>units?<\/span><\/p>\n

A.\u00a0 <\/span><\/span><\/span>$7,200<\/span><\/p>\n

B.\u00a0\u00a0 <\/span><\/span><\/span>$7,000<\/span><\/p>\n

C.\u00a0\u00a0 <\/span><\/span><\/span>$200<\/span><\/p>\n

D.\u00a0 <\/span><\/span><\/span>$14,200<\/span><\/p>\n

2. <\/span><\/strong>In describing the cost equation, Y = a + bX, what is “a”?<\/span><\/p>\n

A.\u00a0 <\/span><\/span><\/span>The variable cost per unit of activity<\/span><\/p>\n

B.\u00a0\u00a0 <\/span><\/span><\/span>The dependent variable cost<\/span><\/p>\n

C.\u00a0\u00a0 <\/span><\/span><\/span>The independent variable level of activity<\/span><\/p>\n

D.\u00a0 <\/span><\/span><\/span>The total fixed cost<\/span><\/p>\n

3. <\/span><\/strong>Which of the following is classified as a direct labor cost?<\/span><\/p>\n

A.\u00a0 <\/span><\/span><\/span>Neither wages of assembly-line workers nor a factory supervisor<\/span><\/p>\n

B.\u00a0\u00a0 <\/span><\/span><\/span>Wages of assembly-line workers but not a factory supervisor<\/span><\/p>\n

C.\u00a0\u00a0 <\/span><\/span><\/span>Wages of a factory supervisor but not assembly line workers<\/span><\/p>\n

D.\u00a0 <\/span><\/span><\/span>Both wages of assembly-line workers and a factory supervisor<\/span><\/p>\n

4. <\/span><\/strong>Tarten Corporation uses the FIFO method in its process costing system. Operating data for the Curing <\/span>Department for the month of March appear below:<\/span><\/p>\n

Percent Complete<\/span><\/strong><\/p>\n

with Respect <\/span><\/strong>lo<\/span><\/strong><\/p>\n

\u00a0 <\/span>Units\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>Conversion<\/span><\/strong><\/p>\n

e eg <\/span><\/strong>inn ing work in process inventory\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/strong>……….\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/strong>9 000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/strong>10%<\/span><\/strong><\/p>\n

Transferred in from the prior deparinlent <\/span><\/strong>di\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/strong>Fh <\/span><\/strong>n la <\/span>March\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/strong>……….\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/strong>57 000<\/span><\/strong><\/p>\n

Completed and transferred io the next departrnenldurino March\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/strong>65.01:10<\/span><\/strong><\/p>\n

Ending work in process inventory\u00a0 <\/span>…………………………………………………………………… <\/span><\/span><\/strong>000……………. <\/span>70%<\/span><\/strong><\/p>\n

According to the company’s records, the conversion cost in beginning work in process inventory was <\/span>$7,470 at the beginning of March. The cost per equivalent unit for conversion costs for March was $8.20. <\/span>How much conversion cost would be assigned to the units completed and transferred out of the department <\/span>during March?<\/span><\/p>\n

A.\u00a0 <\/span><\/span><\/span>$533,090<\/span><\/p>\n

B.\u00a0\u00a0 <\/span><\/span><\/span>$533,000<\/span><\/p>\n<\/div>\n

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C.<\/span><\/span>$592,040<\/span><\/p>\n

D.<\/span><\/span>$525,530<\/span><\/p>\n

5. <\/span><\/strong>Electrical costs at one of Kantola Corporation’s factories are listed below:<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

Machine-Hours Electrical Cost<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

February<\/span><\/p>\n<\/td>\n

\n

3,570<\/span><\/p>\n<\/td>\n

\n

$36,405<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

March<\/span><\/p>\n<\/td>\n

\n

3,580<\/span><\/p>\n<\/td>\n

\n

$36,493<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

April<\/span><\/p>\n<\/td>\n

\n

3,553<\/span><\/p>\n<\/td>\n

\n

$36,302<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

May<\/span><\/p>\n<\/td>\n

\n

3,627<\/span><\/p>\n<\/td>\n

\n

$36,833<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

June<\/span><\/p>\n<\/td>\n

\n

3,625<\/span><\/p>\n<\/td>\n

\n

$36,800<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

July<\/span><\/p>\n<\/td>\n

\n

3,565<\/span><\/p>\n<\/td>\n

\n

$36,366<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

August<\/span><\/p>\n<\/td>\n

\n

3,548<\/span><\/p>\n<\/td>\n

\n

$36,237<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

September<\/span><\/p>\n<\/td>\n

\n

3,542<\/span><\/p>\n<\/td>\n

\n

$36,213<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

October<\/span><\/p>\n<\/td>\n

\n

3,593<\/span><\/p>\n<\/td>\n

\n

$36,577<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u00a0<\/p>\n

Management believes that electrical cost is a mixed cost that depends on machine-hours. Use the high-low <\/span>method to estimate the variable and fixed components of this cost. Compute the variable component first, <\/span>rounding off to the nearest whole cent. Then compute the fixed component, rounding off to the nearest <\/span>whole dollar. What would these estimates be closest to?<\/span><\/p>\n

A.\u00a0 <\/span><\/span><\/span>$10.19 per machine-hour; $36,470 per month<\/span><\/p>\n

B.\u00a0\u00a0 <\/span><\/span><\/span>$7.29 per machine-hour; $10,392 per month<\/span><\/p>\n

C.\u00a0\u00a0 <\/span><\/span><\/span>$7.48 per machine-hour; $9,708 per month<\/span><\/p>\n

D.\u00a0 <\/span><\/span><\/span>$0.14 per machine-hour; $36,336 per month<\/span><\/p>\n

6. <\/span><\/strong>In November, one of the processing departments at Goodsell Corporation had beginning work in process <\/span>inventory of $36,000 and ending work in process inventory of $35,000. During the month, $427,000 of <\/span>costs was added to production and the cost of units transferred out from the department was $428,000. <\/span>The company uses the FIFO method in its process costing system. In the department’s cost reconciliation <\/span>report for November, what would be the total cost to be accounted for?<\/span><\/p>\n

A.<\/span><\/span>$463,000<\/span><\/p>\n

B.<\/span><\/span>$71,000<\/span><\/p>\n

C.<\/span><\/span>$890,000<\/span><\/p>\n

D.<\/span><\/span>$926,000<\/span><\/p>\n

7. <\/span><\/strong>Narver Corporation uses the weighted-average method in its process costing system. Operating data for the Lubricating Department for the month of October appear below:<\/span><\/p>\n

Percent Complete with <\/span><\/strong>UnitS Respect <\/span><\/strong>‘CO <\/span><\/strong>Conversion<\/span><\/strong><\/p>\n

Beginning viOrli Ii process <\/span><\/strong>iriventory\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>. ……\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>……. ……. .\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>6.600\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>CO%<\/span><\/strong><\/p>\n

Transferred in from the prior deparIrnent during October\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/strong>r<\/span><\/sub><\/strong>.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/strong>40.100<\/span><\/strong><\/p>\n

Cdrripleted and transferred Lo the next department during October…. 37,100<\/span><\/strong><\/p>\n

Ending work in procesS invenIory\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/strong>9.1500\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/strong>80%<\/span><\/strong><\/p>\n

What were the equivalent units for conversion costs in the Lubricating Department for October?<\/span><\/p>\n

A.<\/span><\/span>37,100<\/span><\/p>\n

B.<\/span><\/span>43,100<\/span><\/p>\n<\/div>\n

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C.<\/span><\/span>44,780<\/span><\/p>\n

D.<\/span><\/span>47,780<\/span><\/p>\n

8. <\/span><\/strong>Oaklis Company has provided the following data for maintenance cost:<\/span><\/p>\n

Prior Year Current Year <\/span>Machine Hours\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>10,000\u00a0 <\/span><\/span>12,000<\/span><\/p>\n

Maintenance cost $24,000<\/span>$27,600<\/span><\/p>\n

Maintenance cost is a mixed cost with variable and fixed components. The fixed and variable components of maintenance cost are closest to what amounts?<\/span><\/p>\n

A.\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>$6,000 per year; $2.30 per machine hour<\/span><\/p>\n

B.\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>$6,000 per year; $1.80 per machine hour<\/span><\/p>\n

C.\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>$24,000 per year; $2.30 per machine hour<\/span><\/p>\n

D.\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>$24,000 per year; $1.80 per machine hour<\/span><\/p>\n

9. <\/span><\/strong>In a job-order costing system, the use of indirect materials that have been previously purchased is <\/span>recorded as a credit to<\/span><\/p>\n

A.\u00a0 <\/span><\/span><\/span>Manufacturing Overhead.<\/span><\/p>\n

B.\u00a0\u00a0 <\/span><\/span><\/span>Finished Goods inventory.<\/span><\/p>\n

C.\u00a0\u00a0 <\/span><\/span><\/span>Work in Process inventory.<\/span><\/p>\n

D.\u00a0 <\/span><\/span><\/span>Raw Materials inventory.<\/span><\/p>\n

10. The following data pertains to activity and utility cost for two recent periods:<\/span><\/p>\n

Activity level (units) 8,000 5,000 <\/span>Utility cost\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>$8,000 $6,500<\/span><\/p>\n

Utility cost is a mixed cost with both fixed and variable components. Using the high-low method, what <\/span>would be the cost formula for utility cost?<\/span><\/p>\n

A.<\/span><\/span>Y = $1.25 X<\/span><\/p>\n

B.<\/span><\/span>Y = $4,000 + $0.50 X<\/span><\/p>\n

C.<\/span><\/span>Y = $1.00 X<\/span><\/p>\n

D.<\/span><\/span>Y = $1,500 + $1.25 X<\/span><\/p>\n

11. Which of the following costs is classified as a prime cost?<\/span><\/p>\n

A.\u00a0 <\/span><\/span><\/span>Both direct materials and indirect materials<\/span><\/p>\n

B.\u00a0\u00a0 <\/span><\/span><\/span>Direct materials<\/span><\/p>\n

C.\u00a0\u00a0 <\/span><\/span><\/span>Indirect materials<\/span><\/p>\n

D.\u00a0 <\/span><\/span><\/span>Neither direct materials nor indirect materials<\/span><\/p>\n

12. <\/span><\/strong>Inventoriable costs are also known as<\/span><\/p>\n

A. product costs.<\/span><\/p>\n<\/div>\n

\n

B.\u00a0\u00a0 <\/span><\/span><\/span>variable costs.<\/span><\/p>\n

C.\u00a0\u00a0 <\/span><\/span><\/span>fixed costs.<\/span><\/p>\n

D.\u00a0 <\/span><\/span><\/span>conversion costs.<\/span><\/p>\n

13. <\/span><\/strong>There are two acceptable methods for closing out any balance of underapplied or overapplied <\/span>manufacturing overhead. One method involves allocation of the balance among several accounts, whereas <\/span>the other closes any balance directly to<\/span><\/p>\n

A.\u00a0 <\/span><\/span><\/span>work in process inventory.<\/span><\/p>\n

B.\u00a0\u00a0 <\/span><\/span><\/span>finished goods inventory.<\/span><\/p>\n

C.\u00a0\u00a0 <\/span><\/span><\/span>cost of goods sold.<\/span><\/p>\n

D.\u00a0 <\/span><\/span><\/span>cost of goods manufactured.<\/span><\/p>\n

14. <\/span><\/strong>Laurie Corporation uses the FIFO method in its process costing system. Department A is the first stage <\/span>of Laurie Corporation’s production process. The following information is available for conversion costs for <\/span>the month of May for Department A:<\/span><\/p>\n\n\n\n\n\n\n\n
\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

Unlis<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Work <\/span><\/strong>in <\/span><\/strong>process, beginning 125% complete with respect to conversion costs), .…. <\/span><\/span><\/strong><\/p>\n<\/td>\n

\n

6.000<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Started in May\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>\u00a0\u00a0 <\/span><\/span><\/span><\/strong><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/strong><\/p>\n<\/td>\n

\n

40.000<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Corn plete<\/span><\/strong>,<\/span><\/sup><\/strong>clin <\/span><\/strong>May <\/span><\/strong>and transferred <\/span><\/strong>lo Department <\/span><\/strong>B\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>………… <\/span><\/span><\/strong><\/p>\n<\/td>\n

\n

3-5.000<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Work in process, ending (60% complete with respect to conversion costs)\u00a0 <\/span>……….. <\/span><\/span><\/strong><\/p>\n<\/td>\n

\n

10.000<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u00a0<\/p>\n

How many are the equivalent units of production for conversion costs for the month?<\/span><\/p>\n

A.<\/span><\/span><\/strong>44,000 units<\/span><\/strong><\/p>\n

B.<\/span><\/span><\/strong>38,000 units<\/span><\/p>\n

C.<\/span><\/span><\/strong>36,000 units<\/span><\/p>\n

D.<\/span><\/span><\/strong>42,000 units<\/span><\/strong><\/p>\n

15. <\/span><\/strong>Adams Corporation makes two products: Product A and Product B. Annual production and sales are <\/span>500 units of Product A and 900 units of Product B. The company has traditionally used direct labor-hours <\/span>as the basis for applying all manufacturing overhead to products. Product A requires 0.4 direct labor-hours <\/span>per unit and Product B requires 0.5 direct labor-hours per unit. The total estimated overhead for next <\/span>period is $67,522. The company is considering switching to an activity-based costing system for the <\/span>purpose of computing unit product costs for external reports. The new activity-based costing system would <\/span>have three overhead activity cost pools\u2014Activity 1, Activity 2, and General Factory\u2014with estimated <\/span>overhead costs and expected activity as follows:<\/span><\/p>\n\n\n\n\n\n\n\n\n
\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

Estimated
<\/span><\/strong>Overhead<\/span><\/p>\n<\/td>\n

\n

Expected Activity<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Activity Cost Pool<\/span><\/p>\n<\/td>\n

\n

Costs<\/span><\/p>\n<\/td>\n

\n

Product A<\/span><\/p>\n<\/td>\n

\n

Product B<\/span><\/p>\n<\/td>\n

\n

Total<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Activity 1<\/span><\/p>\n<\/td>\n

\n

$ 6,915<\/span><\/p>\n<\/td>\n

\n

300<\/span><\/p>\n<\/td>\n

\n

200<\/span><\/p>\n<\/td>\n

\n

500<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Activity 2<\/span><\/p>\n<\/td>\n

\n

24,948<\/span><\/p>\n<\/td>\n

\n

2,100<\/span><\/p>\n<\/td>\n

\n

700<\/span><\/p>\n<\/td>\n

\n

2,800<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

General Factor<\/span><\/strong><\/p>\n<\/td>\n

\n

35,659<\/span><\/strong><\/p>\n<\/td>\n

\n

200<\/span><\/strong><\/p>\n<\/td>\n

\n

450<\/span><\/p>\n<\/td>\n

\n

650<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Total .……………………. <\/span><\/span><\/p>\n<\/td>\n

\n

$67,522<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u00a0<\/p>\n

(Note: The General Factory activity cost pool’s costs are allocated on the basis of direct labor-hours.) <\/span>The overhead cost per unit of Product A under the traditional costing system is closest to which value?<\/span><\/p>\n

A.\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>$3.56<\/span><\/p>\n

B.\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>$41.55<\/span><\/p>\n<\/div>\n

\n

C.\u00a0\u00a0 <\/span><\/span><\/span>$21.94<\/span><\/p>\n

D.\u00a0\u00a0 <\/span><\/span><\/span>$5.53<\/span><\/p>\n

16. <\/span><\/strong>Eagle Company’s quality cost report is to be based on the following data:<\/span><\/p>\n

Quality data gathering, <\/span>analysis, <\/span>and reporting._\u00a0 <\/span><\/span>$59,000<\/span><\/p>\n

Test and inspection of incoming materials\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>$48,000<\/span><\/p>\n

Final <\/span>product <\/span>testing <\/span>and inspection\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>$27,000<\/span><\/p>\n

Depreciation of test equipment\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>$30,000<\/span><\/p>\n

Cost of field servicing and handling complaints …………… <\/span><\/span>$52,000<\/span><\/p>\n

Disposal of <\/span>defective products\u00a0 <\/span>…………………………… <\/span>$13,000<\/span><\/p>\n

Downtime caused by <\/span>quality problems ,,,, … <\/span><\/span>,,……………………………………. <\/span><\/span>$52,000<\/span><\/p>\n

Technical support provided to suppliers.__,…_.._..\u00a0 <\/span>……… <\/span><\/span>$18,000<\/span><\/p>\n

Returns arising from <\/span>quality problems\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span>539,000<\/span><\/p>\n

What would be the total prevention cost appearing on the quality cost report?<\/span><\/p>\n

A.\u00a0\u00a0 <\/span><\/span><\/span>$77,000<\/span><\/p>\n

B.\u00a0\u00a0 <\/span><\/span><\/span>$48,000<\/span><\/p>\n

C.\u00a0\u00a0 <\/span><\/span><\/span>$86,000<\/span><\/p>\n

D.\u00a0\u00a0 <\/span><\/span><\/span>$57,000<\/span><\/p>\n

17. <\/span><\/strong>In October, one of the processing departments at Ridling Corporation had ending work in process <\/span>inventory of $39,000. During the month, $252,000 of costs was added to production and the cost of units <\/span>transferred out from the department was $235,000. The company uses the FIFO method in its process <\/span>costing system. In the department’s cost reconciliation report for October, what would be the total cost to <\/span>be accounted for?<\/span><\/p>\n

A.\u00a0\u00a0 <\/span><\/span><\/span>$548,000<\/span><\/p>\n

B.\u00a0\u00a0 <\/span><\/span><\/span>$274,000<\/span><\/p>\n

C.\u00a0\u00a0 <\/span><\/span><\/span>$61,000<\/span><\/p>\n

D.\u00a0\u00a0 <\/span><\/span><\/span>$526,000<\/span><\/p>\n

18. <\/span><\/strong>A company has several service departments that provide differing amounts of service to each other and to the company’s operating departments. Which of the following statements is true?<\/span><\/p>\n

A.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The step-down method will result in the same amount of cost being allocated to each operating department regardless of <\/span>which service department is allocated first.<\/span><\/p>\n

B.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The direct method will result in the same amount of cost being allocated to each operating department regardless of which <\/span>service department is allocated first.<\/span><\/p>\n

C.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The direct method and the step-down method will result in the same amount of cost being allocated to each operating <\/span>department.<\/span><\/p>\n

D.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The direct method is more accurate than the step-down method when service departments provide services to each other.<\/span><\/p>\n

19. <\/span><\/strong>In order to reduce its overall quality costs, on what costs should a company focus most of its efforts?<\/span><\/p>\n

A.<\/span><\/span>Prevention costs<\/span><\/p>\n

B.<\/span><\/span>Internal failure costs<\/span><\/p>\n

C.<\/span><\/span>Appraisal costs<\/span><\/p>\n

D.<\/span><\/span>External failure costs<\/span><\/p>\n<\/div>\n

20. <\/span><\/strong>Index Corporation uses the FIFO method in its process costing system. The first processing <\/span>department, the Forming Department, started the month with 17,000 units in its beginning work in process <\/span>inventory that were 10% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $9,010. An additional 76,000 units were started into production during the <\/span>month and 83,000 units were completed and transferred to the next processing department. There were <\/span>10,000 units in the ending work in process inventory of the Forming Department that were 70% complete with respect to conversion costs. A total of $445,915 in conversion costs were incurred in the department <\/span>during the month. What is the cost per equivalent unit for conversion costs for the month closest to?<\/span><\/p>\n

A.<\/span><\/span>$5.150<\/span><\/p>\n

B.<\/span><\/span>$5.050<\/span><\/p>\n

C.<\/span><\/span>$5.300<\/span><\/p>\n

D.<\/span><\/span>$5.867<\/span><\/p>\n

End of exam<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

\u00a0 Exam: 061400RR – Cost Concepts and Types of Costing Questions 1 to 20: 1. Given the cost formula, Y = $7,000 + $1.80X, what would be the total cost for an activity level of 4,000 units? A.\u00a0 $7,200 B.\u00a0\u00a0 $7,000 C.\u00a0\u00a0 $200 D.\u00a0 $14,200 2. In describing the cost equation, Y = a + […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-47819","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/47819","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=47819"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/47819\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=47819"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=47819"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=47819"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}