ACC455 Final Exam 2015: Comprehensive Managerial Accounting: University of Phoenix

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ACC455 Final Exam 2015: Comprehensive Managerial Accounting: CostAnalysis, Decision-Making, and Variance Evaluation-University of PhoenixUniversity of Phoenix ACC455 Final Exam 2015Report this Question as Inappropriate1.The per-unitstandards for direct labor are 2 direct labor hours at $12 per hour. If inproducing 2,400 units, the actual direct labor cost was $51,200 for 4,000 direct laborhours worked, the total direct labor variance is$4,000 unfavorable$6,400 unfavorable$1,920 unfavorable$6,400 favorable2.Poodle Company manufactures two products, Mini A and Maxi B. Poodle'soverhead costs consist of setting up machines, $800,000; machining, $1,800,000; andinspecting, $600,000. Information on the two products is:Mini AMaxi BDirect labor hours 15,000 25,000Machine setups 600 400Machine hours 24,000 26,000Inspections 800 700Overhead applied to Mini A using traditional costing using direct labor hours is$1,670,000$1,536,000$1,200,000$1,920,0003.Disney’s variable costs are 30% of sales. The company is contemplating anadvertising campaign that will cost $22,000. If sales are expected to increase $40,000,by how much will the company's net income increase?

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$18,000$12,000$6,000$28,0004.The cost toproduce Part A was $10 per unit in 2005. During 2006, it has increasedto $11 per unit. In 2006, Supplier Company has offered to supply Part A for $9 perunit. For the make-or-buy decision,net relevant costs are $1 per unitdifferential costs are $2 per unitincremental costs are $1 per unitincremental revenues are $2 per unit5.Luca Company overapplied manufacturing overhead during 2006. Which one of thefollowing is part of the year end entry to dispose of the overapplied amount assumingthe amount is material?An increase to cost of goods soldAn increase to finished goodsA decrease to work in process inventoryA decrease to applied overhead6.In most cases, prices are set by thecustomersselling companylargest competitorcompetitive market7.Max Company uses 10,000 units of Part A in producing its products. A supplieroffers to make Part A for $7. Max Company has relevant costs of $8 a unit tomanufacture Part A. If there is excess capacity, the opportunity cost of buying Part Afrom the supplier is$0

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$80,000$70,000$10,0008.Prices are set by the competitive market whena company can effectively differentiate its product from othersthe product is specially made for a customerthere are no other producers capable of manufacturing a similar itema product is not easily distinguished from competing products9.Waco’s Widgets plans to sell 22,000 widgets during May, 19,000 units in June, and20,000 during July. Waco keeps 10% of the next month’s sales as ending inventory.How many units should Waco produce during June?19,00018,90019,10021,00010.An activity that has a direct cause-effect relationship with the resources consumedis a(n)cost driverproduct activitycost pooloverhead rate11.The per-unit standards for directmaterials are 2 gallons at $4 per gallon. Lastmonth, 11,200 gallons of direct materials that actually cost $42,400 were used toproduce 6,000 units of product. The direct materials quantity variance for last monthwas$2,400 favorable$5,600 unfavorable$3,200 unfavorable

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