(TCO 1) Setting a sales goal of a 12% year over year increase in sales is an example of which management responsibility?
Planning
Directing
Controlling
Decision making
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Question 27 pts
(TCO 1) Which of the following statements regarding financial accounting and managerial accounting is incorrect?
Financial accounting must follow GAAP, whereas managerial accounting does not need to follow GAAP.
Financial accounting is concerned with the past, whereas managerial accounting is concerned with the future.
Financial accounting information must be objective and reliable, whereas managerial accounting information must be relevant.
Financial accounting is focused on decision making, whereas managerial accounting information is concerned with reporting historical transactions accurately.
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Question 37 pts
(TCO 1) Which of the following professional standards applies to providing recommendations that are accurate and timely?
Integrity
Credibility
Confidentiality
Competence
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Question 47 pts
(TCO 1) Which of the following is a period cost?
Raw materials cost
Depreciation on factory equipment
Insurance for the factory
Rent for the headquarters office building
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Question 57 pts
(TCO 1) Which of the following is a variable cost?
Interest paid on the headquarters office building
Electricity used to run factory machinery
Advertising costs
Rent for the factory
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Question 67 pts
(TCO 1) Which of the following is a conversion cost?
Interest paid on the headquarters office building
Costs to rent the factory
Advertising costs
Direct materials costs
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Question 77 pts
(TCO 1) On December 31, 2015, SLE Inc. has a balance in the Finished Goods Inventory account of $55,000. On January 1, 2015, the balance in the Finished Goods Inventory account was $33,000. On December 31, 2015, the balance in the Work-in-Process inventory account is $10,000. On January 1, 2015, the balance in the Work-in-Process inventory account is $16,000. Cost of goods manufactured is $210,000. How much is cost of goods sold?
$188,000
$204,000
$216,000
$232,000
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Question 87 pts
(TCO 2) Which of the companies below would be most likely to not use job-order costing?
A contract printer
A custom boat builder
A chemical manufacturer
A specialty coffee roaster
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Question 97 pts
(TCO 2) James Company applies manufacturing overhead based on machine hours. Information concerning manufacturing overhead cost and hours for August follows.
Estimated Actual
Overhead cost $500,000 $400,000
Direct labor hours 15,000 40,000
Machine hours 25,000 80,000
How much is the predetermined overhead rate?
$33.33
$5.00
$20.00
$10.00
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Question 107 pts
(TCO 2) During 2015, Thompson Company applied overhead using a job-order costing system at a rate of $15 per direct labor hour. Estimated direct labor hours for the year were 110,000, and estimated overhead for the year was $1,650,000. Actual direct labor hours for 2015 were 100,000, and actual overhead was $1,520,000. What is the amount of under- or over-applied overhead for the year?
$130,000 under-applied
$20,000 under-applied
$130,000 over-applied
$20,000 over-applied
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Question 1120 pts
(TCO 2) Royal Company uses budgeted overhead rates to apply overhead to individual jobs. It uses a system based on machine hours. Last year, the company made the following estimates for this year.
Direct labor costs $9,900,000
Factory overhead costs $11,748,000
Direct Labor Hours $550,000
Machine Hours $660,000
(a) What is the budgeted overhead rate for the company? (Show your work)
(b) If Job #31255 had the costs listed below, what would be the total cost of Job #31255? (Show your work)
Material costs were $300,000;
Direct labor costs were $216,000;
Direct labor hours were 12,000; and
Machine hours were 15,000.
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