Question 1

In an automobile manufacturing company, tires are considered what type of the following cost(s) relative to the number of cars produced?

Accepted Answer

The answer of In an automobile manufacturing company, tires are...

Question 2

Ding Dong is an answering service for major corporations. The company charges its clients a $340 monthly fee and $0.50 per phone call answered. Ding Dong's pricing structure results in a(an)

Accepted Answer

Ding Dong's pricing includes a fixed monthly fee ($340) and a variable charge per phone call ($0.50), making it a mixed cost to clients.

Question 3

Use the following information to answer questions 
Super Fresh Bakery pays Dedric Brown a monthly salary to supervise five bakers. The bakers are paid an hourly wage.
-The cost of the flour included in Super Fresh's bread is a (an)

Accepted Answer

The cost of the flour used in Super Fresh's bread is a direct material cost because it is a primary raw material that can be directly traced to the production of the bread. Direct material costs are those costs that can be directly attributed to the production of a specific product, and in this case, flour is a key ingredient in bread making.

Question 4

Use the following information to answer questions 
Super Fresh Bakery pays Dedric Brown a monthly salary to supervise five bakers. The bakers are paid an hourly wage.
-Brown's salary relative to Super Fresh's bread is a(an)

Accepted Answer

Dedric Brown's salary is an indirect labor cost because he supervises the bakers rather than directly participating in the production of the bread. His work supports the production process but is not directly traceable to specific units of product.

Question 5

Use the following information to answer questions 
Super Fresh Bakery pays Dedric Brown a monthly salary to supervise five bakers. The bakers are paid an hourly wage.
-How would the bakers' wages be classified relative to Super Fresh's bread?

Accepted Answer

The answer of Use the following information to answer questions...

Question 6

Hula Juice, a smoothie restaurant, uses a substantial amount of water in its operations. In August, the busiest month, the restaurant used 20,000 gallons of water at a cost of $600. In January, the slowest month of the year, 4,000 gallons of water were used at a cost of $200. The mixed cost formula for Hula's water usage is

Accepted Answer

The answer of Hula Juice, a smoothie restaurant, uses a...

Question 7

The variable cost value in the high-low method can be found by dividing the change in

Accepted Answer

The variable cost per unit in the high-low method is found by dividing the change in total cost by the change in activity level. This method helps in estimating the variable and fixed components of a company's total costs.

Question 8

Once the total cost at either the high or low level of activity has been found, fixed cost can be found by

Accepted Answer

Fixed costs can be found by subtracting the total variable cost from the total cost. This is because the total cost consists of both variable and fixed costs, and by removing the variable portion, what remains are the fixed costs.

Question 9

Lebron Co. estimated its electricity cost by using activity at 12,500 kilowatt hours and at 24,000 kilowatt hours. The cost formula was $0.03 + $1,430. Lebron Co. planned on using 18,000 kilowatt hours in March, but actually used 19,200. Lebron's expected electricity cost for March was

Accepted Answer

The cost formula is $0.03 per kilowatt hour plus a fixed cost of $1,430. For 18,000 kilowatt hours, the expected cost is (18,000 * $0.03) + $1,430 = $1,970.

Question 10

Fein Corp. manufactures food processors, each containing $20 of variable costs. Fein's fixed costs are $1,200,000, spread evenly throughout the year. If Fein expects to produces 20,000 food processors in May, what is Fein's total expected cost for the month?

Accepted Answer

The total expected cost for May includes both variable and fixed costs. Variable costs are $20 per unit, so for 20,000 units, the variable cost is $400,000. The fixed costs for the month are $1,200,000 / 12 = $100,000. Therefore, the total expected cost is $400,000 + $100,000 = $500,000.

Question 11

Conversion cost includes the cost of

Accepted Answer

The answer of Conversion cost includes the cost of
...

Question 12

A direct cost is

Accepted Answer

The answer of A direct cost is
...

Question 13

Which of the following is not an example of a production overhead cost?

Accepted Answer

Plastic used in producing automobile interiors is a direct material cost, not an overhead cost. Production overhead costs are indirect costs related to manufacturing that cannot be traced directly to specific units produced.

Question 14

The cost of which of the following labor categories should be classified as production overhead?

Accepted Answer

The answer of The cost of which of the following...

Question 15

Use the following information to answer questions 
Kee-Co.'s production workers are paid $10 per hour. Overtime wages are $15 per hour and second shift workers (who never receive overtime) are paid a 10% shift premium. During June, employees worked 6,000 regular hours, 200 overtime hours, and 1,440 shift hours.
-Direct labor cost for June is

Accepted Answer

Regular hours cost = 6,000 hours * $10/hour = $60,000. Overtime cost = 200 hours * $15/hour = $3,000. Shift premium = 1,440 hours * $10/hour * 10% = $1,440. Shift hours cost = 1,440 hours * $10/hour = $14,400. Total = $60,000 + $3,000 + $1,440 + $14,400 = $78,840.

Question 16

Use the following information to answer questions 
Kee-Co.'s production workers are paid $10 per hour. Overtime wages are $15 per hour and second shift workers (who never receive overtime) are paid a 10% shift premium. During June, employees worked 6,000 regular hours, 200 overtime hours, and 1,440 shift hours.
-Overhead related to production worker wages for June was

Accepted Answer

The answer of Use the following information to answer questions...

Question 17

Use the following information to answer questions 
Down Under manufactures boomerangs and incurs the following per unit costs:
 
-What is the conversion cost per unit?

Accepted Answer

The answer of Use the following information to answer questions...

Question 18

Use the following information to answer questions 
Down Under manufactures boomerangs and incurs the following per unit costs:
 
-Total variable product cost per unit is

Accepted Answer

The answer of Use the following information to answer questions...

Question 19

Which of the following types of goods and services are appropriate for a job order costing system versus a process costing system?

Accepted Answer

The answer of Which of the following types of goods...

Question 20

March 2010 was Flinch Corp.'s first month in business. During the month, Flinch put enough material into process to complete 7,600 hats. At the end of March, Flinch had 2,000 hats still in process that were 30% complete as to conversion. What are the equivalent units of production for material and conversion for March 2010?
Material &emsp; Conversion

Accepted Answer

For material, all 7,600 hats would have had the material added at the beginning of the process, so the equivalent units for material are 7,600. For conversion, the 2,000 hats that were still in process at 30% completion contribute 600 equivalent units (2,000 hats * 30% = 600). Adding these to the 5,600 hats that were completed (7,600 total hats - 2,000 in process = 5,600 completed), gives a total of 6,200 equivalent units for conversion.

Quiz 11: Managerial Accounting

In an automobile manufacturing company, tires are considered what type of the following cost(s) relative to the number of cars produced?

Ding Dong is an answering service for major corporations. The company charges its clients a $340 monthly fee and $0.50 per phone call answered. Ding Dong's pricing structure results in a(an)

Use the following information to answer questions Super Fresh Bakery pays Dedric Brown a monthly salary to supervise five bakers. The bakers are paid an hourly wage. -The cost of the flour included in Super Fresh's bread is a (an)

Use the following information to answer questions Super Fresh Bakery pays Dedric Brown a monthly salary to supervise five bakers. The bakers are paid an hourly wage. -Brown's salary relative to Super Fresh's bread is a(an)

Use the following information to answer questions Super Fresh Bakery pays Dedric Brown a monthly salary to supervise five bakers. The bakers are paid an hourly wage. -How would the bakers' wages be classified relative to Super Fresh's bread?

The variable cost value in the high-low method can be found by dividing the change in

Once the total cost at either the high or low level of activity has been found, fixed cost can be found by

Lebron Co. estimated its electricity cost by using activity at 12,500 kilowatt hours and at 24,000 kilowatt hours. The cost formula was $0.03 + $1,430. Lebron Co. planned on using 18,000 kilowatt hours in March, but actually used 19,200. Lebron's expected electricity cost for March was

Fein Corp. manufactures food processors, each containing $20 of variable costs. Fein's fixed costs are $1,200,000, spread evenly throughout the year. If Fein expects to produces 20,000 food processors in May, what is Fein's total expected cost for the month?

Conversion cost includes the cost of

A direct cost is

Which of the following is not an example of a production overhead cost?

The cost of which of the following labor categories should be classified as production overhead?

Use the following information to answer questions Down Under manufactures boomerangs and incurs the following per unit costs: -What is the conversion cost per unit?

Use the following information to answer questions Down Under manufactures boomerangs and incurs the following per unit costs: -Total variable product cost per unit is

Which of the following types of goods and services are appropriate for a job order costing system versus a process costing system?