Sheet1I need it by Saturday.1.Reno Corporation uses a predetermined overhead application rate of $.30 per direct labor hour. During the year it incurred $345,000 dollars of actual overhead, but it planned to incur $360,000 of overhead. The company applied $363,000 of overhead during the year. How many direct labor hours did the company plan to incur? (Points: 4) 1,150,000 1,190,000 1,200,000 1,210,000Working360,0001,200,000.000.32. Aztec Company is relocating its facilities. The company estimates that it will take three trucks to move office contents. If the per truck rental charge is $1,000 plus 25 cents per mile, what is the expected cost to move 800 miles? (Points: 4) $1,000 $1,200 $2,400 $3,600rentals3000Miles60036003. At its present level of operations, a small manufacturing firm has total variable costs equal to 75 percent of sales and total fixed costs equal to 15 percent of sales. Based on variable costing, if sales change by $1.00, income will change by _______. (Points: 4) $0.25 $0.10 $0.75 can't be determined from the information given4. Actual fixed overhead is $33,300 (12,000 machine hours) and fixed overhead was estimated at $34,000 when the predetermined rate of $3.00 per machine hour was set. If 11,500 standard hours were allowed for actual production, applied fixed overhead is _______. (Points: 4) $33,300 $34,000 $34,500 not determinable without knowing the actual number of units produced5. One unit requires 2 direct labor hours to produce. Standard variable overhead per unit is $1.25 and standard fixed overhead per unit is $1.75. If 330 units were produced this month, what total amount of overhead is applied to the units produced? (Points: 4) $990 $1,980 $660 cannot be determined without knowing the actual hours worked6. Western Company uses a standard cost accounting system. The following overhead costs and production data are available for August:Standard fixed OH rate per DLH$1Standard variable OH rate per DLH$4Budgeted monthly DLHs40,000Actual DLHs worked39,500Standard DLHs allowed for actual production39,000Overall OH variance-favorable$2,000The total applied manufacturing overhead for August should be _______. (Points: 4) $195,000 $197,000 $197,500 $199,5007. Alpha, Beta, and Epsilon CompaniesBelow are income statements that apply to three companies: Alpha, Beta, and Epsilon:Alpha Co.Beta Co.Epsilon Co.Sales$100$100$100Variable costs(10)(20)(30)Contribution margin$90$80$70Fixed costs(30)(20)(10)Profit before taxes$60$60$60Refer to Alpha, Beta, and Epsilon Companies. At sales of $100, which firm has the highest margin of safety? (Points: 4) Alpha Company Beta Company Epsilon Company They all have the same margin of safety.8. Precious Jewels Corporation produces quality jewelry items for various retailers. For the coming year, it has estimated it will consume 500 ounces of gold. Its carrying costs for a year are $2 per ounce. No safety stock is maintained. If the EOQ is 100 ounces, what is the cost per order? (Points: 4) $40 $20 $5 $259. A company has estimated its economic order quantity for Part A at 2,400 units for the coming year. If ordering costs are $200 and carrying costs are $.50 per unit per year, what is the estimated total annual usage? (Points: 4) 6,000 units 28,800 units 7,200 units 2,400 units10. A company annually consumes 10,000 units of Part C. The carrying cost of this part is $2 per year and the ordering costs are $100. The company uses an order quantity of 500 units. By how much could the company reduce its total costs if it purchased the economic order quantity instead of 500 units? (Points: 4) $500 $2,000 $2,500 $011. Modern management accounting can be characterized by its _______. (Points: 4) flexibility standardization complexity precision12. Which of the following is not a valid method for determining product cost? (Points: 4) arbitrary assignment direct measurement systematic allocation cost-benefit measurement13. Cost accounting is directed toward the needs of _______. (Points: 4) regulatory agencies external users internal users stockholders14. The process of ____ causes the need for cost accounting. (Points: 4) conversion sales controlling allocating15. The Institute of Management Accountants issues _______. (Points: 4) Statements on Accounting Research for Managers Statements on Management Accounting Statements on Managerial and Cost Accounting Cost Accounting Standards16. Period costs _______. (Points: 4) are generally expensed in the same period in which they are incurred are always variable costs remain unchanged over a given period of time are associated with the periodic inventory method17. The indirect costs of converting raw material into finished goods are called ______. (Points: 4) period costs prime costs overhead costs conversion costs18. Conversion cost does not include _______. (Points: 4) direct labor direct material factory depreciation supervisors' salaries19. The distinction between direct and indirect costs depends on whether a cost _______. (Points: 4) is controllable or non-controllable is variable or fixed can be conveniently and physically traced to a cost object under consideration will increase with changes in levels of activity20. Applied overhead consists of which of the following? (Points: 4) actual activity times predetermined overhead rate estimated activity times predetermined overhead rate actual activity times actual overhead rate estimated activity times actual overhead rate21. If a company used two overhead accounts (actual overhead and applied overhead), the one that would receive the most debits would be _______. (Points: 4) actual overhead applied overhead both would receive an equal number of debits impossible to determine without additional information22. The measure of production that considers historical and estimated future production levels and cyclical fluctuations is referred to as _______. (Points: 4) theoretical capacity practical capacity normal capacity expected capacity23. A short-run measure of activity that represents a firms anticipated activity level for an upcoming period based upon expected demand is referred to as _______. (Points: 4) theoretical capacity practical capacity normal capacity expected capacity24. An item or event that has a cause-effect relationship with the incurrence of a variable cost is called a _______. (Points: 4) mixed cost predictor direct cost cost driver25. Which of the following could not be used in job order costing? (Points: 4) standards an average cost per unit for all jobs normal costing overhead allocation based on the job's direct labor hours26. Which of the following would be least likely to be supported by subsidiary accounts or ledgers in a company that employs a job order costing system? (Points: 4) Work in Process Inventory Raw Material Inventory Accounts Payable Supplies Inventory27. The source document that records the amount of raw material that has been requested by production is the _______. (Points: 4) job order cost sheet bill of lading interoffice memo material requisition28. The cost sheets for incomplete jobs at the end of the period comprise the subsidiary ledger for _______. (Points: 4) Finished Goods Inventory Raw Material Inventory Work in Process Inventory Supplies Inventory29. The source document that records the amount of time an employee worked on a job and his/her pay rate is the ______. (Points: 4) job order cost sheet employee time sheet interoffice memo labor requisition form30. The journal entry to apply overhead to production includes a credit to Manufacturing Overhead control and a debit to _______. (Points: 4) Finished Goods Inventory Work in Process Inventory Cost of Goods Sold Raw Material Inventory31. The weighted average method is thought by some accountants to be inferior to the FIFO method because it _______. (Points: 4) is more difficult to apply only considers the last units worked on ignores work performed in subsequent periods commingles costs of two periods32. When standard costs are used in process costing, _______. (Points: 4) variances can be measured during the production period total costs rather than current production and current costs are used process costing calculations are made simpler the weighted average method of calculating EUPs makes computing transferred-out costs easier33. When the cost of lost units must be assigned, and those same units must be included in an equivalent unit schedule, these units are considered ______. (Points: 4) normal and discrete normal and continuous abnormal and discrete abnormal and continuous34. A continuous loss _______. (Points: 4) occurs unevenly throughout a process never occurs during the production process always occurs at the same place in a production process occurs evenly throughout the production process35. Standard costs may be used for _______. (Points: 4) product costing planning controlling all of the above36. A purpose of standard costing is to ________. (Points: 4) replace budgets and budgeting simplify costing procedures eliminate the need for actual costing for external reporting purposes eliminate the need to account for year-end underapplied or overapplied manufacturing overhead37. A bill of material does not include _______. (Points: 4) quantity of component inputs price of component inputs quality of component inputs type of product output38. An operations flow document _______. (Points: 4) tracks the cost and quantity of material through an operation tracks the network of control points from receipt of a customer's order through the delivery of the finished product specifies tasks to make a unit and the times allowed for each tasknot sure charts the shortest path by which to arrange machines for completing products39. A total variance is best defined as the difference between total _______. (Points: 4) actual cost and total cost applied for the standard output of the period standard cost and total cost applied to production actual cost and total standard cost of the actual input of the period actual cost and total cost applied for the actual output of the period40. If actual direct labor hours (DLHs) are less than standard direct labor hours allowed and overhead is applied on a DLH basis, a(n) _______. (Points: 4) favorable variable overhead spending variance exists favorable variable overhead efficiency variance exists favorable volume variance exists unfavorable volume variance exists41. If a company obtains two salable products from the refining of one ore, the refining process should be accounted for as a(n) _______. (Points: 4) mixed cost process joint process extractive process reduction process42. Joint cost allocation is useful for ______. (Points: 4) decision making product costing control evaluating managers' performance43. The definition of a sunk cost is _______. (Points: 4) a cost that cannot be recovered regardless of what happens a cost that relates to money poured into the ground considered the original cost of an item also known as an opportunity cost44. The method of pricing by-products/scrap where no value is assigned to these items until they are sold is known as the _______. (Points: 4) net realizable value at split-off point method sales value at split-off method realized value approach approximated net realizable value at split-off method45. CVP analysis relies on the assumptions that costs are either strictly fixed or strictly variable. Consistent with these assumptions, as volume decreases total ______. (Points: 4) fixed costs decrease variable costs remain constant costs decrease costs remain constant46. In CVP analysis, linear functions are assumed for _______. (Points: 4) contribution margin per unit fixed cost per unit total costs per unit all of the above47. If a firm's net income does not change as its volume changes, the firm('s) _______. (Points: 4) must be in the service industry must have no fixed costs sales price must equal $0 sales price must equal its variable costs48. Break-even analysis assumes over the relevant range that _______. (Points: 4) total variable costs are linear fixed costs per unit are constant total variable costs are nonlinear total revenue is nonlinear49. Which of the following qualitative factors favors the buy choice in a make or buy decision for a part? (Points: 4) maintaining a long-term relationship with suppliers quality control is critical utilization of idle capacity part is critical to product50. An ad hoc sales discount is _______. (Points: 4) an allowance for an inferior quality of marketed goods a discount that an ad hoc committee must decide on brought about by competitive pressures none of the above51. Measuring the firm's performance against established objectives is part of which of the following functions? (Points: 4) Planning Controlling Organizing Staffing52. Ineffective budgets and/or control systems are characterized by the use of _______. (Points: 4) budgets as a planning tool only and disregarding them for control purposes budgets for motivation budgets for coordination the budget for communication53. Which of the following is usually perceived as being the master budget's greatest advantage to management? (Points: 4) performance analysis increased communication increased coordination required planning54. If the chief accountant of a firm has to prepare an operating budget for the coming year, the first budget to be prepared is the _______. (Points: 4) sales budget cash budget purchases budget capital budget55. The material purchases budget tells a manager all of the following except the _______. (Points: 4) quantity of material to be purchased each period quantity of material to be consumed each period cost of material to be purchased each period cash payment for material each period56. A purchases budget is _______. (Points: 4) not affected by the firm's policy of granting credit to customers the same thing as a production budget needed only if a firm does not pay for its merchandise in the same period as it is purchased affected by a firm's inventory policy only if the firm purchases on credit57. If a company has a policy of maintaining an inventory of finished goods at a specified percentage of the next month's budgeted sales, budgeted production for January will exceed budgeted sales for January when budgeted _______. (Points: 4) February sales exceed budgeted January sales January sales exceed budgeted December sales January sales exceed budgeted February sales December sales exceed budgeted January sales58. The selling, general, and administrative expense budget is based on the ____ budget. (Points: 4) production sales cash purchases59. Which of the following is not an ordering cost? (Points: 4) cost of receiving inventory cost of preparing the order cost of the merchandise ordered cost of storing the inventory60. A ____ system of production control is paced by product demand. (Points: 4) EOQ ABC push pull61. Striving for flexibility in the number of products that can be produced in a short period of time is characteristic of _______. (Points: 4) EOQ systems push systems in general JIT pull systems in general62. Just-in-time (JIT) inventory systems _______. (Points: 4) result in a greater number of suppliers for each production process focus on a "push" type of production system can only be used with automated production processes result in inventories being either greatly reduced or eliminated63. Accounting for product costs in a JIT environment _______. (Points: 4) uses a job order costing system classifies processing costs as raw (or direct) material, direct labor, and overhead is more complex than in other types of manufacturing environments follows process costing procedures whereby costs are accumulated by the process (cell) and attached to units processed for the period64. In a production cell, _______. (Points: 4) an individual worker may be expected to operate several different machines, do setups, and perform preventive maintenance on the equipment each worker becomes an expert in the operation of a single piece of equipment machines are arranged so that similar machines are grouped together clear separation is maintained between those workers who operate the machinery and those workers who set up and maintain the machinery65. Using a single performance evaluation criterion for an investment center ______. (Points: 4) is most effective because a manager can concentrate on a single goal can result in manipulation of the performance measure allows multinational investment centers' performances to be equitably compared is only appropriate if the criterion is non-monetary66. In evaluating the performance of a profit center manager, the manager ______. (Points: 4) and the sub-unit should be evaluated on the basis of the same costs and revenues should only be evaluated on the basis of variable costs and revenues of the sub-unit should be evaluated on all costs and revenues that are controllable by the manager should be evaluated on all costs and revenues that can be directly traced to the sub-unit67. Residual income is an example of a ____ performance measurement. (Points: 4) long-term short-term qualitative profit center68. In a balanced scorecard, measurements should be directly linked to _______. (Points: 4) organizational strategy and values the cost management system current organizational profitability activity-based management concepts69. On a balanced scorecard, which of the following would be most appropriate to measure customer service? (Points: 4) Rapid time-to-market of new products Corporate financial profits On-time delivery Decrease in reworked products70. On a balanced scorecard, which of the following would be most appropriate to measure innovation? (Points: 4) Rapid time-to-market of new products Corporate financial profits On-time delivery Manufacturing cycle efficiency

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