ACCT 526 Final Exam | Questions and Answers | Update | 100% Correct - ULL.
Incorrect
0.00 points out of 1 .00
ULL Inc. is a manufacturing firm. Last month, direct materials costing $1,270,500 were put into production. Direct labor of $904,000 was incurred,
manufacturing overhead equaled $225,000, and selling and administrative costs totaled $507,000. The company manufactured 9,200 units during the
month. Assume that there were no beginning or ending work-in-process balances. What was the total conversion cost for last month?
$2,399,500
$732,000
$1,031,500
$1,129,000
Direct Labor + Manufacturing Overhead= Conversion Cost
The correct answer is: $1,129,000
,Question 2
1 .00 points out of 1 .00
Managerial accounting reports are prepared:
all of these statements are correct.
to provide creditors with information useful in making credit decisions.
to present historical information.
to meet the needs of decision makers within a firm.
The correct answer is: to meet the needs of decision makers within a firm.
Question 3
Incorrect
0.00 points out of 1 .00
Groot Enterprises produces two types of cameras: 35mm and digital. The cameras are produced using one continuous process. Four activities
involved in the production have been identified as: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to
each activity. The overhead activities, their costs, and the other related data are as follows:
Product Machine Hours Setups Receiving Orders Packing Orders
35mm 15,480 400 300 750
Digital 15,000 650 1,200 4,100
Costs $76,000 $73,350 $45,000 $33,850
Using an activity rate for receiving based on receiving orders, assign receiving costs to the 35mm cameras.
a. $2,000
b. $45,000
c. $36,000
d. $3,000
e. $9,000
Activity rate= Activity cost / Activity driver quantity
Activity rate for 35mm cameras = Activity cost of receiving orders / Number of receiving orders =
$45, ,500 orders (1 ,200 orders + 300 orders) = $30.00 per receiving order
Overhead assignment: Receiving costs for 35mm cameras = (Activity rate× Number of receiving orders) =$30.00
×300 orders = $9,000
The correct answer is: $9,000
,1 .00 points out of 1 .00
Manufacturing overhead:
consists of all manufacturing costs other than direct materials.
consists of all costs other than direct materials.
consists of all costs other than direct materials and direct labor.
consists of all manufacturing costs other than direct materials and direct labor.
Rationale:
Manufacturing overhead consists of all manufacturing costs other than direct materials and direct labor.
The correct answer is: consists of all manufacturing costs other than direct materials and direct labor.
Question 5
1 .00 points out of 1 .00
A factory produces 207,000 microscopes per quarter. A total of 11,500 production hours are used by the factory per quarter. Calculate the cycle time
in minutes. (Note: Round your answer to two decimal places.)
3.00 minutes
.05 minutes
0.06 minutes
3.33 minutes
Cycle time = Time / Units produced
/
The correct answer is: 3.33 minutes
, 1 .00 points out of 1 .00
Product costs consist of:
direct materials, direct labor, and manufacturing overhead.
direct materials, direct labor, and selling costs.
design and advertising costs.
indirect materials, indirect labor, and administrative costs.
The correct answer is: direct materials, direct labor, and manufacturing overhead.
Question 7
1 .00 points out of 1 .00
can help a company become more competitive by providing more appropriate treatment of overhead costs.
Volume-based costing
Production costing
Prime costing
Activity-based costing
Unit-based costing
Activity-based cost systems generate more accurate cost data than unit-based cost systems because of their
more appropriate treatment of overhead costs.
The correct answer is: Activity-based costing
Incorrect
0.00 points out of 1 .00
ULL Inc. is a manufacturing firm. Last month, direct materials costing $1,270,500 were put into production. Direct labor of $904,000 was incurred,
manufacturing overhead equaled $225,000, and selling and administrative costs totaled $507,000. The company manufactured 9,200 units during the
month. Assume that there were no beginning or ending work-in-process balances. What was the total conversion cost for last month?
$2,399,500
$732,000
$1,031,500
$1,129,000
Direct Labor + Manufacturing Overhead= Conversion Cost
The correct answer is: $1,129,000
,Question 2
1 .00 points out of 1 .00
Managerial accounting reports are prepared:
all of these statements are correct.
to provide creditors with information useful in making credit decisions.
to present historical information.
to meet the needs of decision makers within a firm.
The correct answer is: to meet the needs of decision makers within a firm.
Question 3
Incorrect
0.00 points out of 1 .00
Groot Enterprises produces two types of cameras: 35mm and digital. The cameras are produced using one continuous process. Four activities
involved in the production have been identified as: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to
each activity. The overhead activities, their costs, and the other related data are as follows:
Product Machine Hours Setups Receiving Orders Packing Orders
35mm 15,480 400 300 750
Digital 15,000 650 1,200 4,100
Costs $76,000 $73,350 $45,000 $33,850
Using an activity rate for receiving based on receiving orders, assign receiving costs to the 35mm cameras.
a. $2,000
b. $45,000
c. $36,000
d. $3,000
e. $9,000
Activity rate= Activity cost / Activity driver quantity
Activity rate for 35mm cameras = Activity cost of receiving orders / Number of receiving orders =
$45, ,500 orders (1 ,200 orders + 300 orders) = $30.00 per receiving order
Overhead assignment: Receiving costs for 35mm cameras = (Activity rate× Number of receiving orders) =$30.00
×300 orders = $9,000
The correct answer is: $9,000
,1 .00 points out of 1 .00
Manufacturing overhead:
consists of all manufacturing costs other than direct materials.
consists of all costs other than direct materials.
consists of all costs other than direct materials and direct labor.
consists of all manufacturing costs other than direct materials and direct labor.
Rationale:
Manufacturing overhead consists of all manufacturing costs other than direct materials and direct labor.
The correct answer is: consists of all manufacturing costs other than direct materials and direct labor.
Question 5
1 .00 points out of 1 .00
A factory produces 207,000 microscopes per quarter. A total of 11,500 production hours are used by the factory per quarter. Calculate the cycle time
in minutes. (Note: Round your answer to two decimal places.)
3.00 minutes
.05 minutes
0.06 minutes
3.33 minutes
Cycle time = Time / Units produced
/
The correct answer is: 3.33 minutes
, 1 .00 points out of 1 .00
Product costs consist of:
direct materials, direct labor, and manufacturing overhead.
direct materials, direct labor, and selling costs.
design and advertising costs.
indirect materials, indirect labor, and administrative costs.
The correct answer is: direct materials, direct labor, and manufacturing overhead.
Question 7
1 .00 points out of 1 .00
can help a company become more competitive by providing more appropriate treatment of overhead costs.
Volume-based costing
Production costing
Prime costing
Activity-based costing
Unit-based costing
Activity-based cost systems generate more accurate cost data than unit-based cost systems because of their
more appropriate treatment of overhead costs.
The correct answer is: Activity-based costing
