ACCT 434 WEEK 3 QUIZ – DEVRY
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ACCT 434 WEEK 3 QUIZ – DEVRY
1. (TCO 3)
McDevitt Company employs six individuals. Each is paid $12.50 per
hour. How would total costs of personnel be classified? (Points : 3)
2. (TCO 3)
For January, the cost components of a picture frame include $0.35 for the
glass, $0.65 for the wooden frame, and $0.80 for assembly. The assembly
desk and tools cost $400. A total of 1,000 frames is expected to be
produced in the coming year. What cost function best represents these
costs? (Points : 3)
3. (TCO 3)
Which cost estimation method may use time-and-motion studies to analyze the
relationship between inputs and outputs in physical terms? (Points : 3)
4. TCO 3)
Penny’s TV and Appliance Store is a small company that has hired you to perform
some management advisory services. The following information pertains to
20X2 operations. Sales (2,000 televisions) $900,000; Cost of goods sold
$400,000; Store manager’s salary per year $70,000; Operating costs per year
$157,000; Advertising and promotion per year $15,000; Commissions (4% of sales)
$36,000. What were total fixed costs for 20X2? (Points : 3)
5. (TCO 4) A
decision model involves (Points : 3)
6. (TCO 4)
When using the five-step decision process, which one of the following steps
should be done first? (Points : 3)
7. (TCO 4)
Sunk costs (Points : 3)
8. (TCO 4)
Black Tool Company has a production capacity of 1,500 units per month,
but production is only 1,250 units. The manufacturing costs are $60
per unit and marketing costs are $16 per unit. Doug Hall offers to
purchase 250 units at $76 each for the next five months. Should Black
accept the one-time-only special order if only absorption-costing data are
available? (Points : 3)
9. (TCO 5)
The theory of constraints is used for cost analysis when (Points : 3)
10. (TCO 5)
Producing more nonbottleneck output (Points : 3)
________________________________________________________________________________________________
1. (TCO 3) McDevitt Company employs
six individuals. Each is paid $12.50 per hour. How would total costs of
personnel be classified? (Points : 5)
2. (TCO 3) For January, the cost
components of a picture frame include $0.35 for the glass, $0.65 for the wooden
frame, and $0.80 for assembly. The assembly desk and tools cost $400. A total
of 1,000 frames is expected to be produced in the coming year. What cost
function best represents these costs? (Points : 5)
3. (TCO 3) Which cost estimation
method analyzes accounts in the subsidiary ledger as variable, fixed, or mixed
using qualitative methods? (Points : 5)
4. (TCO 3) Penny’s TV and Appliance
Store is a small company that has hired you to perform some management advisory
services. The following information pertains to 20X2 operations: Sales (2,000 televisions)
$900,000; Cost of goods sold $400,000; Store manager’s salary per year $70,000;
Operating costs per year $157,000; Advertising and promotion per year $15,000;
Commissions (4% of sales) $36,000. What are the estimated total costs if
Penny’s expects to sell 3,000 units next year? (Points : 5)
5. (TCO 4) A decision model involves
(Points : 5)
6. (TCO 4) When using the five-step
decision process, which one of the following steps should be done first?
(Points : 5)
7. (TCO 4) Sunk costs (Points : 5)
8. (TCO 4) Northwoods Incorporated
manufactures rustic furniture. The cost accounting system estimates
manufacturing costs to be $90 per table, consisting of 80% variable costs and
20% fixed costs. The company has surplus capacity available. It is Northwoods’
policy to add a 50% markup to full costs. A large hotel chain is currently
expanding and has decided to decorate all new hotels using the rustic style.
Northwoods is invited to submit a bid to the hotel chain. What is the lowest
price per unit Northwoods should bid on this long-term order? (Points : 5)
- (TCO 5) Piels
Corporation produces a part that is used in the manufacture of one of its
products. The costs associated with the production of 10,000 units of this
part are as follows.
Direct materials $ 90,000
Direct labor 130,000
Variable factory overhead 60,000
Fixed factory overhead 140,000
Total costs $420,000
Of the fixed factory overhead costs, $60,000 is avoidable.
Assuming no other use of their facilities, the highest price that Piels should
be willing to pay for 10,000 units of the part is _____. (Points : 5)
- (TCO 5) Helmer’s
Rockers manufactures two models, Standard and Premium. Weekly demand is
estimated to be 100 units of the Standard Model and 70 units of the
Premium Model. The following per unit data apply.
StandardPremium
Contribution margin per unit $18 $20
Number of machine-hours required 3 4
If there are 600 machine-hours available per week, how many
rockers of each model should Jim Helmer produce to maximize profits? (Points :
5)
