(TCO 3) Which of the following activities would NOT be considered a value-added…

(TCO 3) Which of the following activities would NOT be considered a value-added activity?ProductionMarketingAccountingDistribution:Question 2. Question :(TCO 3) The continual process of measuring a company’s own products, services, or activities against competitors’ performances is called:performance measure.benchmarking.budgeting.responsibility center.lean accounting.Question 3. Question :(TCO 3) The field of accounting that depends on generally accepted accounting principles (GAAP) is called:cost accounting.financial accounting.managerial accounting.responsibility accounting.international accounting.Question 4. Question :(TCO 3) MoreForLess Company had revenues of $2,000,000 while costs were $1,500,000. In the next year, MoreForLess will be introducing a new product line that will generate $200,000 in sales revenues and $160,000 in costs. Assuming no changes are expected for the other products, the differential operating profit for the next year is:$540,000.$200,000.$160,000.Question 5. Question :(TCO 3) Jay’s Limo Service provides transportation services in and around Centerville. Its profits have been declining, and management is planning to add a package delivery service that is expected to increase revenue by $300,000 per year. The total cost to lease additional delivery vehicles from the local dealer is $70,000 per year. The present manager will continue to supervise all services. Due to expansion, however, the labor costs and utilities will increase by 40%. Rent and other costs will increase by 20%.Jay’s Limo ServiceAnnual Income StatementBefore ExpansionSales revenue$980,000Costs:Vehicle leases420,000Labor300,000Utilities60,000Rent80,000Other costs70,000Manager’s salary110,000Total costs$1,040,000Operating profit (loss)$(60,000)What are the total differential costs that will incur as a result of the expansion?$70,000$214,000$230,000$244,000week 2(TCO 1) Larcker Manufacturing’s cost accountant has provided you with the following information for January operations:Direct materials$105 per unitFixed manufacturing overhead costs$675,000Sales price$395 per unitVariable manufacturing overhead$60 per unitDirect labor$120 per unitFixed marketing and administrative costs$585,000Units produced and sold30,000Variable marketing and administrative costs$24 per unitWhat is the full absorption cost per unit?$247.50$309.00$307.50$285.00Question 2. Question :(TCO 1) Larcker Manufacturing’s cost accountant has provided you with the following information for January operations:Direct materials$105 per unitFixed manufacturing overhead costs$675,000Sales price$395 per unitVariable manufacturing overhead$60 per unitDirect labor$120 per unitFixed marketing and administrative costs$585,000Units produced and sold30,000Variable marketing and administrative costs$24 per unitWhat is the variable manufacturing cost?$351.00$84.00$309.00$285.00Question 3. Question :(TCO 6) Madison Inc. is considering the introduction of a new energy drink with the following price and cost characteristics:Sales price$3.00 per unitVariable costs$1.00 per unitFixed costs$450,000 per monthHow many units must Madison sell per month to break even?CORRECT 225,000 units150,000 units450,000 units112,500 unitsQuestion 4. Question :(TCO 6) Madison Inc. is considering the introduction of a new energy drink with the following price and cost characteristics:Sales price$4.00 per unitVariable costs$1.00 per unitFixed costs$480,000 per monthHow many units must Madison sell per month to make an operating profit of $150,000?50,000 units160,000 units630,000 units210,000 unitsQuestion 5. Question :(TCO 6) You have been provided with the following information:Per UnitTotalSales$20$60,000Less variable expenses824,000Contribution margin1236,000Less fixed expenses30,000Operating profit$ 6,000If sales decrease 200 units, by how much will fixed expenses have to be reduced in order to maintain the current operating profit of $6,000?$2,400$4,000$6,000$27,600week 3 and 5(TCO 5) Mason Industries manufactures 20,000 components per year. The manufacturing cost of the cowmonents was determined as follows:Direct materials $80,000Direct labor $120,000Variable overhead $55,000Fixed overhead $40,000An outside supplier has offered to sell Mason the component for $13. If Mason purchases the component from the outside supplier, fixed costs would be reduced by $10,000. Should Mason accept the offer?Yes, because the differential costs decrease by $10,000.Yes, because the differential costs decrease by $5,000.No, because the differential costs increase by $10,000.No, because the differential costs increase by $5,000.Question 2. Question : (TCO 5) The following information relates to a product produced by Henry Company:Direct materials $13Direct labor 10Variable overhead 8Fixed overhead 11Unit cost $42Fixed selling costs are $1,000,000 per year. Variable selling costs of $3 per unit sold are added to cover the transportation cost. Although production capacity is 500,000 units per year, Henry expects to produce only 400,000 units next year. The product normally sells for $50 each. A customer has offered to buy 50,000 units for $38 each. The customer will pay the transportation charge on the units purchased. If Henry accepts the special order, the effect on income would be a:$750,000 increase.$350,000 increase.$200,000 increase.$100,000 increase.Points Received: 5 of 5Comments:Question 3. Question : (TCO 5) The operations of Click Corporation are divided into the North Division and the South Division. Projections for the next year are as follows:North Division South Division TotalSales $720,000 340,000 $1,060,000Variable costs 215,000 158,000 373,000Contribution margin $505,000 $182,000 $687,000Direct fixed costs 173,000 146,000 319,000Segment margin $332,000 $36,000 $368,000Allocated common costs 90,000 68,000 158,000Operating income (loss) $242,000 $(32,000) $210,000If the South Division was dropped, the operating income for Click Corporation, as a whole, would be:$264,000.$174,000.$242,000.$210,000.Question 4. Question : (TCO 3) Mount Company incurred a total cost of $8,600 to produce 400 units of pulp. Each unit of pulp required five direct labor hours to complete. What is the total fixed cost if the variable cost was $1.50 per direct labor hour?$1,700$3,000$5,600$8,000Question 5. Question : (TCO 3) The controller of Joy Co has requested a quick estimate of the manufacturing supplies needed for the Morton Plant for the month of July, when production is expected to be 470,000 units to meet the ending inventory requirements and sales of 475,000 units. Joy Co’s budget analyst has the following actual data for the last three months.Using the high-low method to develop a cost estimating equation, the estimate of the needed manufacturing supplies for July would be:$681,500.$688,750.$749,180.$752,060.Points Received: 5 of 5Comments:Question 1. Question : (TCO 2) Mark Corporation estimates its manufacturing overhead to be $110,000 and its direct labor costs to be $220,000 for Year 1. The actual direct labor costs for the year include:Job 301 $60,000Job 302 82,000Job 303 98,000The actual manufacturing overhead was $121,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs by using predetermined rates. What was the over- or underapplied manufacturing overhead for Year 1?$11,000 overapplied$11,000 underapplied$1,000 overapplied$1,000 underappliedPoints Received: 5 of 5Comments:Question 2. Question : (TCO 2) The journal entry to record the actual manufacturing overhead costs for indirect material is:abcdeQuestion 3. Question : (TCO 2) Cedar Company estimates its manufacturing overhead to be $700,000 and its direct labor costs to be $560,000 for Year 2. Cedar worked on the following three jobs for the year:Job Status Direct Labor CostsJob 2-1 Completed and sold $195,000Job 2-2 Completed by not sold 325,000Job 2-3 In progress 130,000Actual manufacturing overhead for Year 2 was $822,000. Manufacturing overhead is applied on the basis of direct labor costs. How much of the underapplied overhead should be allocated to finished goods?$2,850$1,900$4,750$9,500Question 4. Question : (TCO 2) In order to compute equivalent units of production using the FIFO method of process costing, work for the period must be broken down to units:completed during the period and units in ending inventory.started during the period and units transferred out during the period.completed from beginning inventory, started and completed during the month, and units in ending inventory.processed during the period and units completed during the period.Question 5. Question : (TCO 2) The Finishing Department had 5,000 incomplete units in its beginning Work-in-Process Inventory, which were 100% complete as to materials and 30% complete as to conversion costs. 15,000 units were received from the previous department. The ending Work-in-Process Inventory consisted of 2,000 units, which were 50% complete as to materials and 30% complete as to conversion costs. The Finishing Department uses first-in, first-out (FIFO) process costing. What are the equivalent units of production for the conversion costs during the period?14,50015,10016,50017,100week 6 and 7n(TCO 2) Mark Corporation estimates its manufacturing overhead to be $110,000 and its direct labor costs to be $220,000 for Year 1. The actual direct labor costs for the year include:Job 301 $60,000Job 302 82,000Job 303 98,000The actual manufacturing overhead was $121,000. Manufacturing overhead is applied to .homeworkminutes.com/answer/view/73877#”>jobs on the basis of direct labor costs by using predetermined rates. What was the over- or underapplied manufacturing overhead for Year 1?$11,000 overapplied$11,000 underapplied$1,000 overapplied$1,000 underappliedQuestion 2. Question : (TCO 2) The journal entry to record the actual manufacturing overhead costs for indirect material is:abcdeQuestion 3. Question : (TCO 2) Cedar Company estimates its manufacturing overhead to be $700,000 and its direct labor costs to be $560,000 for Year 2. Cedar worked on the following three jobs for the year:Job Status Direct Labor CostsJob 2-1 Completed and sold $195,000Job 2-2 Completed by not sold 325,000Job 2-3 In progress 130,000Actual manufacturing overhead for Year 2 was $822,000. Manufacturing overhead is applied on the basis of direct labor costs. How much of the underapplied overhead should be allocated to finished goods?$2,850$1,900$4,750$9,500Comments:Question 4. Question : (TCO 2) In order to compute equivalent units of production using the FIFO method of process costing, work for the period must be broken down to units:completed during the period and units in ending inventory.started during the period and units transferred out during the period.completed from beginning inventory, started and completed during the month, and units in ending inventory.processed during the period and units completed during the period.Question 5. Question : (TCO 2) The Finishing Department had 5,000 incomplete units in its beginning Work-in-Process Inventory, which were 100% complete as to materials and 30% complete as to conversion costs. 15,000 units were received from the previous department. The ending Work-in-Process Inventory consisted of 2,000 units, which were 50% complete as to materials and 30% complete as to conversion costs. The Finishing Department uses first-in, first-out (FIFO) process costing. What are the equivalent units of production for the conversion costs during the period?14,50015,10016,50017,100(TCO 2) Activity analysis is one of the first stages in implementing an activity-based costing system. Which of the following steps of activity analysis is usually performed first?Classify all activities as value added or nonvalue added.Record, from start to finish, the activities used to complete the product or service.Identify the process objectives that are defined by what the customer wants from the process.Improve the efficiency of all activities and develop plans to eliminate any nonvalue-added activities.Question 2. Question : (TCO 2) Zela Company is preparing its annual profit plan. As part of its analysis of the profitability of individual products, the controller estimates the amount of overhead that should be allocated to the individual product lines from the information provided below.Budgeted material handling costs: $50,000Under an activity-based costing (ABC) system, the materials handling costs allocated to one unit of wall mirrors would be:$625.00.$312.50.$833.33.$1,000.00.Question 3. Question : (TCO 2) A company has identified the following overhead costs and cost drivers for the coming year:Budgeted direct labor cost was $100,000, and budgeted direct material cost was $280,000. The following information was collected on three jobs that were completed during the year:If the company uses activity-based costing (ABC), how much overhead cost should be assigned to Job 101?$1,300$2,000$5,000$5,600Comments:Question 4. Question : (TCO 2) Scottso Enterprises has identified the following overhead costs and cost drivers for the coming year:Budgeted direct labor cost was $200,000, and budgeted direct material cost was $800,000. The following information was collected on three jobs that were completed during the month:If the company uses activity-based costing (ABC), what is the cost of each unit of Job A-28?$320.00$30.40$187.40$350.40Question 5. Question : (TCO 2) Which of the following statements is true?One of the lessons learned from activity-based costing (ABC) is that all costs are really a function of volume.The primary purpose of the plant wide and department allocation methods is allocating direct costs to specific products.A problem with activity-based costing (ABC) is that it requires more recordkeeping than other methods.Direct cost allocations are required for the plant wide and department allocation methods.

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