Accounting 349 week 2 quiz

Accounting 349 week 2 quiz

Subject: Business    / Accounting
Question

1. (TCO 6) Homogeneity is used to (Points : 6)

develop cost pools in which the costs have the same or similar cost-allocation base.

develop cost pools of similar amounts for allocation purposes.

develop cost pools based on similarity of origination costs to be allocated.

develop costs pools only for activity-based costing.

Question 2. 2. (TCO 6) In a customer cost hierarchy, the costs of a sales visit made to a customer is (Points : 6)

a customer output unit-level cost.

a customer batch-level cost.

a customer-sustaining cost.

a distribution-channel cost.

Question 3. 3. (TCO 5) Natural Nutrients Bakery of Southfield produces three flavors of cat morsels that have budgeted and actual sales data for a bag of a dozen of its cat morsels as follows for December 20XX.

Budgeted Data Actual Data

Tuna ChikBits ChezNips Tuna ChikBits ChezNips

Bags 7,200 4,800 4,000 10,800 3,600 7,200

CM per bag $2.50 $4.00 $5.00 $2.00 $3.00 $7.50

Cont. Margin $18,000 $19,200 $20,000 $21,600 $10,800 $54,000

Total Contribution Margin $57,200 $86,400

According to company forecasts, it was budgeting to earn a 25% market share in total units (bags) of specialty prepared cat treats sold in December 20XX in Southfield. Reliable industry sources indicate that the total number of bags of cat treats sold for December 200X in Southfield was 72,000.

The sales-mix variance for December 20XX for Natural Nutrients Bakery is (Points : 6)

$8,600 F.

$8,760 F.

$160 F.

$180 F.

Question 4. 4. (TCO 6) The following data are for Kershaw Company for the last month.

Budgeted direct labor mix at budgeted prices for actual output produced the following.

3,825 skilled hours at $16 per hour

1,275 unskilled hours at $12 per hour

5,100 total hours

Actual results

4,000 skilled hours at $19 per hour

1,000 unskilled hours at $9 per hour

5,000 total hours

The direct labor yield variance for both types of labor together is (Points : 6)

$1,500 favorable.

$1,000 unfavorable.

$1,000 favorable.

$500 favorable.

Question 5. 5.

(TCO 6) The following data are for Uriah Corp. for the first quarter of the current fiscal year.

Actual Results Static Budget

Unit sales:

Product X

15,000 40,000

Product Y

65,000 60,000

Total

80,000 100,000

Contribution margin per unit:

Product X

$4 $5

Product Y

$3 $2

The sales-mix variance for both products together is

(Points : 6)

$51,000 unfavorable.

$64,000 unfavorable.

$115,000 unfavorable.

$115,000 favorable.