1.

In an accounting system, the inputs are usually economic event

2. Which of the following positions would likely be a staff manager? Controller
3. Factors that have led to a global market for manufacturing service firms are Improved transportation and
communication systems
4. Any form of commerce that is executed using information and communication technology is called electronic
commerce
5. Which of the following statements is true?
The service sector comprises approximately three quarters of the United States’ economy and employment
6. Zinger Corporation: If normal costing is used, the amount of overhead applied for the year is: 675,000
7. Family Manufacturing: The company uses a predetermined overhead rate to apply overhead. Manufacturing
overhead applied is: 750,000
8. Sutton Corporation: if normal costing is used, budgeted overhead used to calculate the predetermined rate
would be: 536, 250
9. Zercox’s Corporation: Zerco’s predetermined overhead rate per machine hour? 15.20
10. Abel Corporation for July 2018: The variable product costs are: 769,000
11. Abel Corporation for July 2018: The prime costs are are: 564,000
12. The difference between a supply and an indirect materials is that: supplies are necessary for production and
are not physically part of the product
13. All of Eva enterprise’s operations are housed in on building. How much will be classified as a product cost for
July: 32,000
14. If total warehousing cost of the year amounts to 950,000 and 35 percent of the warehousing activity is
associated with finished goods and 65 percent with direct materials, how much of the cost would be charged
as a product cost? 617,5000
15. During the month of January, Marcos & Henesey, Inc. had toral manufacturing costs of 165,000. What was the
cost of materials purchased during the month? 68,800
16. Which of the following expenses incurred by a department store is a direct cost for the women’s shoe
department? The salespersons’ commission in the women’s shoe department
17. Which of the following is an example of an expense? The cost of the purchase of equipment
18. A cost management subsystem designed to provide accurate and timely feedback concerning the
performance of managers and other relative to their planning and control activities is called the: operational
control information system
19. Azure Company predicted factory overhead for 2018. When the normal factory overhead rate is used, the
gross profit for 2018 and 2019, respectively are: 360,000 and 360,000 respectively
20. Boilermakers Company: Cost of Goods Sold after adjustment would have a balance of: 960,000
21. Foremost company: When the annual estimated factory overhead rate is used, the gross profits for 2018 and
2019, respectively, are: 150,000 and 100,000
22. A nursing home requires one nurse for each six patients. This is an example of a: step cost
23. A predetermined overhead rate is calculated using which of the following formula? Budgeted annual
overhead/ budgeted annual driver level
24. If unit-based product costing is used, which of the following would be traced directly to the product?
direct labor
25. Multiple regression: During the year the company used 1,000 setup hours and 500 parts. The model being
measured is: Overhead = 1,000 + 25(Setup hours) + 100(# of parts)
26. Multiple regression: During the year the company used 1,000 setup hours and 500 parts. What is the
predicted overhead cost: 76,000
27. If at a given volume total costs are fixed costs are known, the variable costs per unit may be computed as
follows: (Total costs - Fixed Cost)/Unit Volume
28. Amigos industries analyzed the relationship between total factory overhead and changes in direct labor
hours. It found the following Y = 6,000 + 6x. The Y in the equation is an estimate of: Total factory overhead
29. Assume the following information: what is the variable cost per unit?
30. Fixed cost per unit is 7 when 25,000 units are produced and 5 when 35,000 units are produced. What is the
total fixed cost when nothing is produced? 175,000
31. The activity-resource usage model allows managers to better calculate the changes in resource supply and
demand resulting from decisions such as: To make or buy production components
32. A company usually processes 20,000 order at a total cost of 250,000. During the year, only 10,000 orders were
processed. What is the cost of unused activity? 125,000
33. Which of the following methods of determining cost behavior uses average account values and average driver
values to calculate fixed costs: The learning average curve model
34. Assuming costs are represented on the vertical axis and volume of activity on the horizontal axis, which of the
following costs would be represented is parallel to the horizontal axis? rent on exhibit space at a convention
35. When the volume of activity increased within the relevant range, the fixed cost per unit decreases
36. Bentler Shoppers, Inc. The net income for the month of December is: 916,000
37. Abel Corporation for July 2018. The total product cost is 969,000
38. Healthy Solutions, Inc. What is the capacity cost rate? 32.13 per hour
39. Wellness Clinic: What is the activity rate for treating patients? 35
40. Gardenview Corporation: If kilowatt hours are used to assign power costs, the amount of power costs
assigned to Job 6A would be: 30.00
41. The collected data sets that are organized and interrelated for use by an organization’s ABC information
system is (are): Activity-based costing database
42. Gardenview Corporation: If the four activity drivers are used to allocate overhead costs, total overhead
allocated to Job 6A would be: 5,630
43. Gardenview Corporation: If the number of setups is used to assign setup costs, the amount of setup costs
assigned to Job 6A would be: 800
44. Nissex Manufaturing Company: What is the allocation rate per order using activity-based costing system:
437.50
45. An activity-based costing system uses which of the following procedures? Overhead costs are traced to
activities, then costs are traced to products.
46. Activity-based costing assigns cost to cost objects by first tracing costs to: activities and then tracing costs to
cost objects
47. Summer Manufacturing has four categories: What is the total cost of the proposed job if Summer
Manufacturing uses direct labor hours as its only activity driver? 56,200
48. Summer Manufacturing: What is the amount of overhead allocated to the proposed job if Summer
Manufacturing uses as its only activity driver? 20,800
49. Foremost Company: When the annual estimated factory overhead rate is used, the gross profits for 2018 and
2019, respectively, are: 150,000 and 100,000
50. The teal company manufactures customized fabric yarns: If the spoilage was considered normal, what is the
cost of job 450: 9,000
51. Which of the following is true of normal spoilage? It is expected due to the nature of the production process
52. Monroe Company: What is the cost of goods manufactured for the month? 10,850
53. Lamour Company: What is the cost of Job 102: 127,210
54. Grey, Inc: If the predetermined overhead rate is based on machine hours, what is the total amount credited to
the factory overhead account for the year for Grey? 165,000
55. Tonneau Corporation: What is the cost of goods finished during October for Tonneau Corporation? 53,750
56. Robinson Corporation constructs new homes. The journal entry to record the requisition of lumber for
Robinson would include a debit to Work-In-Process of 3,750
57. Lanyard Company: Factory overhead rate is 18 per direct labor hour. What is the total amount debited to
Finished Goods Inventory in 2018: 450,000
58. Which of the following costs is not included on a job-order cost sheet? Actual factory overhead costs
59. A debit to Materials Inventory indicates materials were purchased
60. The Nautical Corporation: One-half of Job x4A was sold for 10,000. What is the total amount of cost assigned
to Job X4A: 15,750
61. Cameron Corporation: What is the total cost assigned to Job XY5? 4,200
62. A pure service organization has: no raw materials, no tangible items, and no separation between the plant
and the customer
63. Which of the following is true of heterogeneity: Heterogeneity makes it difficult to ensure quality control of
services
64. Which of the following is usually not easily traceable to finished units of product? Manufacturing overhead