WGU D101 Cost and Managerial Accounting |PA| Pre-
Assessment Exam
Correct
Incorrect
1 of 56
Definition
Cadallia Company harvests and processes almonds into three
products: candied almonds, almond butter, and almond flour. The joint
production cost for harvesting one ton of almonds is $500. The selling
price of the Cadallia's three products are as follows:
Candied almonds: $1.00 per pound
Almond butter: $5.00 per 40-pound bag
Almond flour: $14 per ton
A new investor in Cadallia Company thinks that the company is losing
money whenever it sells almond flour and has called for dropping this
product from the product line. The controller of Cadallia Company has
calculated that the extra processing cost (beyond the joint production
costs) for almond flour is $18 per ton. Cadallia Company is currently
selling 1,000 tons of almond flour per year.
How much would Cadallia Company's net income change if it were to
stop selling almond flour?
,It would increase by $4,000.
It would decrease by $4,000.
It would increase by $14,000.
It would decrease by $14,000.
Give this one a try later!
It would increase by $200. It would increase by $4,000.
It will increase by $8,500. It will increase by $550,000.
Don't know?
2 of 56
Definition
Data for a tech company reflecting the activity of all of the company's
operating divisions are provided below:
Number of units 300,000 units
Number of batches 500 batches
Number of product lines 20 product lines
Unit-level overhead cost pool $600,000
Batch-level overhead cost pool 1,500,000
Product line overhead cost pool 500,000
Facility support cost pool 600,000
One division has 60,000 units, 180 batches, and 5 product lines.
How much overhead cost should be allocated to this division?
$185,000
,$485,000
$785,000
$1,385,000
Give this one a try later!
$413,000 $785,000
$132,000 $415,000
Don't know?
3 of 56
Definition
Mickey Corporation has a model for its business that is 50/10/5,
meaning that it always wants its gross margin to be at least 50%, its
operating income as a percentage of revenues to be at least 10% , and
its net income as a percentage of revenues to be at least 5%. Of these
three targets, which targets did Mickey Corporation meet this period?
Its gross margin target and net income target.
Its net income target and gross margin target and operating income
target.
Its gross margin target and operating income target.
Its net income target and operating income target.
Give this one a try later!
, The cost of materials placed into The units produced in the process
production. centers must be the same.
Its gross margin target and net
It would increase by $4,000.
income target.
Don't know?
4 of 56
Definition
A coffee company reports these cost data:
Actual Results
Total labor cost: $710,000
Number of units produced: 7,000
Number of labor hours worked: 13,500
The company has established these standards:
Number of labor hours to produce one unit: 2
Standard labor rate: $50
What is the labor rate variance?
$25,000 F
$25,000 U
$35,000 F
$35,000 U
Give this one a try later!
Assessment Exam
Correct
Incorrect
1 of 56
Definition
Cadallia Company harvests and processes almonds into three
products: candied almonds, almond butter, and almond flour. The joint
production cost for harvesting one ton of almonds is $500. The selling
price of the Cadallia's three products are as follows:
Candied almonds: $1.00 per pound
Almond butter: $5.00 per 40-pound bag
Almond flour: $14 per ton
A new investor in Cadallia Company thinks that the company is losing
money whenever it sells almond flour and has called for dropping this
product from the product line. The controller of Cadallia Company has
calculated that the extra processing cost (beyond the joint production
costs) for almond flour is $18 per ton. Cadallia Company is currently
selling 1,000 tons of almond flour per year.
How much would Cadallia Company's net income change if it were to
stop selling almond flour?
,It would increase by $4,000.
It would decrease by $4,000.
It would increase by $14,000.
It would decrease by $14,000.
Give this one a try later!
It would increase by $200. It would increase by $4,000.
It will increase by $8,500. It will increase by $550,000.
Don't know?
2 of 56
Definition
Data for a tech company reflecting the activity of all of the company's
operating divisions are provided below:
Number of units 300,000 units
Number of batches 500 batches
Number of product lines 20 product lines
Unit-level overhead cost pool $600,000
Batch-level overhead cost pool 1,500,000
Product line overhead cost pool 500,000
Facility support cost pool 600,000
One division has 60,000 units, 180 batches, and 5 product lines.
How much overhead cost should be allocated to this division?
$185,000
,$485,000
$785,000
$1,385,000
Give this one a try later!
$413,000 $785,000
$132,000 $415,000
Don't know?
3 of 56
Definition
Mickey Corporation has a model for its business that is 50/10/5,
meaning that it always wants its gross margin to be at least 50%, its
operating income as a percentage of revenues to be at least 10% , and
its net income as a percentage of revenues to be at least 5%. Of these
three targets, which targets did Mickey Corporation meet this period?
Its gross margin target and net income target.
Its net income target and gross margin target and operating income
target.
Its gross margin target and operating income target.
Its net income target and operating income target.
Give this one a try later!
, The cost of materials placed into The units produced in the process
production. centers must be the same.
Its gross margin target and net
It would increase by $4,000.
income target.
Don't know?
4 of 56
Definition
A coffee company reports these cost data:
Actual Results
Total labor cost: $710,000
Number of units produced: 7,000
Number of labor hours worked: 13,500
The company has established these standards:
Number of labor hours to produce one unit: 2
Standard labor rate: $50
What is the labor rate variance?
$25,000 F
$25,000 U
$35,000 F
$35,000 U
Give this one a try later!
