Liberty University ACCT 212 Exam 3 Power answer

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Liberty University ACCT 212 Exam 3 Power answer

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The following information relating to a company's overhead costs is available.

Based on this information, the total overhead variance is:

Parallel Enterprises has collected the following data on one of its products. During the period the

company produced 25,000 units. The direct materials price variance is:

Chocolate Co. reports the following information from its sales budget:

Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers

in September is:

A company manufactures and sells a product for $120 per unit. The company's fixed costs are $68,760, and its variable costs are $90 per unit. The company's break-even point in sales dollars is:

Wang Co. manufactures and sells a single product that sells for $450 per unit; variable costs are $270 per unit. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Compute the current margin of safety in dollars.

In preparing a budgeted balance sheet, the dollar amount of Accounts Receivable can be

derived from:

The usual starting point in the budgeting process is a plan showing the planned sales units and the

revenue expected from these sales. This plan is called the:

The master budget includes individual budgets for sales, production or merchandise purchases, various expenses, capital expenditures, and cash.

Indirect materials are accounted for as factory overhead because they are not clearly identified with

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specific product units.

Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs to be $400,000, and direct labor costs to be $2,000,000. Actual overhead costs for the year totaled $380,000, and actual direct labor costs totaled $1,800,000. At

year-end, the balance in the Factory Overhead account is a:

During March, the production department of a process operations system completed and transferred to finished goods 25,000 units that were in process at the beginning of March and 110,000 that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to labor. At the end of March, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to labor. The production department incurred direct labor cost of $578,900 and its beginning inventory included labor cost of $54,700. Compute the direct labor cost per equivalent unit for the department using the weighted-average method.

Crinkle Cut Clothes Company manufactures two products CC1 and CC2. Current direct material and direct labor costs are detailed below. Next year the company wishes to use a plantwide overhead rate with direct labor hours as its allocation base. Next year's overhead is estimated to be $338,250. The direct labor and direct materials costs are estimated to be consistent with the current year. Direct labor costs $28 per hour and the company expects to manufacture 22,000 units of CC1 and 91,000 units of CC2 next year.

Compute the plantwide overhead rate for next year.

A line on a scatter diagram that is intended to reflect the past relation between cost and unit volume

is the:

Traditional budgeting is generally better than activity-based budgeting when attempting to reduce costs by eliminating non-value-added activities.

Which of the following must be prepared before the direct labor budget?

A quantity of inventory that provides protection against lost sales caused by unfulfilled demands from

customers is called:

The financial statement effects of the budgeting process are summarized on the cash budget and the capital expenditures budget.

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Companies promoting continuous improvement strive to achieve practical standards rather than ideal standards.

The usefulness of a flexible budget depends on the valid classification of variable and fixed costs.

Use the following data to find the direct labor efficiency variance if the company produced 3,500 units during the period.

Fletcher Company collected the following data regarding production of one of its products. Compute the total direct labor cost variance.

When the number of units produced exceeds the number of units sold, absorption costing defers some of the fixed costs incurred.

If a company reports profit margin of 31.6% and investment turnover of 1.30 for one of its investment

centers, the return on investment must be:

Using the information below, compute the cycle

efficiency:

A profit center generates revenue, incurs costs, and has the authority to make significant investing decisions.

In the preparation of departmental income statements, the preparer completes the following steps in

the following order:

Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 of direct materials and $13,000 of indirect materials. What journal

entry should Andrew use to account for direct materials used in March:

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Leeks Company's product has a contribution margin per unit of $11.25 and a contribution margin ratio of 22.5%. What is the selling price of the product?

The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year.If Burkett Corporation is able to achieve the budgeted level of sales, its margin of safety in dollars

would be:

Masterson Company's budgeted production calls for 56,000 liters in April and 52,000 liters in May of a key raw material that costs $1.85 per liter. Each month's ending raw materials inventory should equal 30% of the following month's budgeted materials. The April 1 inventory for this material is 16,800 liters. What is the budgeted materials need in liters for April?

Ratchet Manufacturing anticipates total sales for August, September, and October of $200,000, $210,000, and $220,500 respectively. Cash sales are normally 25% of total sales and the remaining sales are on credit. All credit sales are collected in the first month after the sale. Compute the amount of cash received for September.

A fixed budget is based on a single predicted amount of sales or other activity measure.

Use the following data to find the direct labor efficiency variance if the company produced 3,500 units during the period.