ACCT 302A - CSUF - 2022

1. 1Distinguish direct costs from indirect costs.

   1. ADirect costs are those that change in total in proportion to changes in the related level of total activity or volume while indirect costs are those that remain unchanged in total for a given time​ period, despite wide changes in the related level of total activity or volume.
   2. BDirect costs are related to the particular cost object and can be traced to that cost object in a​ cost-effective way while indirect costs are related to the particular cost object but cannot be traced to that cost object in a​ cost-effective way.
   3. CDirect costs include the acquisition costs of all materials that eventually become part of the cost object and can be traced to the cost object in an economically feasible way while indirect costs include compensation of all manufacturing labor that can be traced to the cost object in an economically feasible way.
   4. DDirect costs are historical or past costs incurred while indirect costs are predicted or forecasted costs.
2. 2Wages of the operator of the packaging machine

   1. AIndirect Variable
   2. BDirect Variable
   3. CIndirect Fixed
3. 3Cartons for the juice

   1. AIndirect Variable
   2. BIndirect Fixed
   3. CDirect Variable
4. 4Cost of the cleaners used to clean the fruit in step one

   1. AIndirect Fixed
   2. BDirect Variable
   3. CIndirect Variable
5. 5Depreciation on packaging machines

   1. AIndirect Fixed
   2. BIndirect Variable
   3. CDirect Variable
6. 6Wages of the factory cleaning crew

   1. AIndirect Fixed
   2. BDirect Variable
   3. CIndirect Variable
7. 7Depreciation of the factory building

   1. AIndirect Fixed
   2. BDirect Variable
   3. Cnmnmnmnmnm
8. 8Cost of pest control of the factory

   1. AIndirect Fixed
   2. BDirect Variable
   3. Cafdafdfffasfsaf
9. 9Hurricane insurance on factory building

   1. AIndirect Fixed
   2. BDirect Variable
   3. Csvdavaafsfasfsafsaf
10. 10Salary of the production supervisor

    1. AIndirect Fixed
    2. BDirect Variable
    3. CIndirect Variable

11. 11Cost of the oranges and grapefruit

    1. ADirect Variable
    2. BIndirect Variable
    3. Cdfadfsasafasfsafsafsaf
12. 12Wages of the fruit cleaners in the first step

    1. AIndirect Variable
    2. BDirect Variable
    3. Czdvdvfaffsafasf
13. 13Wages of the machinist running the squeezing machine

    1. AIndirect Variable
    2. Bsfasfsafsafsa
    3. CDirect Variable
14. 14Property taxes on the factory building

    1. AIndirect Fixed
    2. BDirect Variable
    3. Cdgdgdfafasf
15. 15Night security for the factory

    1. AIndirect Fixed
    2. BCszvzvzvz
    3. CDirect Variable
16. 16Sugars and flavorings of the juices

    1. ADirect Variable
    2. BIndirect Variable
    3. CsCsfsSdaD
17. 17Water and electricity costs of the factory

    1. AIndirect Variable
    2. Bsdsafdafsafasf
    3. CDirect Variable
18. 18Oil, grease, etc. for factory machines

    1. AIndirect Variable
    2. Bdgdsgsgsdg
    3. CDirect Variable
19. 19Indirect Variable

    1. AIndirect Variable
    2. BDirect Variable
    3. CzscfsDss
20. 20 If the cost object were the​ "squeezing department" rather than a gallon of grapefruit​ juice, which of the preceding costs would now be considered direct rather than​ indirect? ​(

    1. AWages of the machinist running the squeezing machine
    2. BscFSCCczC
    3. CIndirect Variable
21. 21Choose the correct description of variable and fixed costs.

    1. AA variable cost changes in total in proportion to changes in the related level of total activity or​ volume, such as a sales commission that is a percentage of each sales revenue dollar. A fixed cost remains unchanged in total for a given time​ period, despite wide changes in the related level of total activity or​ volume, such as a fixed annual leasing cost of a machine.
    2. BA variable cost is considered to be a unit​ cost, such as the​ per-attendee-cost of hiring a musical group to perform at an event. A fixed cost is considered to be a total​ cost, such
    3. CA variable cost is related to a particular cost object and can be traced to it in an economically feasible​ way, such as the cost of steel in the manufacturing of a luxury car. A fixed cost is related to a particular cost object but cannot be traced to it in an economically feasible​ way, such as the salary of a plant manager who oversees production of many different types of luxury cars produced at the same plant.
    4. DAll of the above.
22. 22What is the relevant​ range? What role does the​ relevant-range concept play in explaining how costs​ behave?

    1. AThe relevant range is the band of normal activity level or volume in which there is a specific relationship between the level of activity or volume and the cost in question. Costs are described as variable or fixed with respect to a particular relevant range.
    2. BThe relevant range is the band of normal activity level or volume in which there is a specific relationship between the level of activity or volume and the related fixed costs. Costs are described as direct or indirect with respect to a particular relevant range.
    3. CThe relevant range is the band of normal activity level or volume in which there is an abnormal relationship between the level of activity or volume and the variable cost per unit. Costs are described as relevant or irrelevant with respect to a particular relevant range.
    4. DThe relevant range is the band of normal activity level or volume in which there is no relationship between the level of activity or volume and the cost in question. Costs are described as relevant or irrelevant with respect to a particular relevant range.
23. 23Applewhite ​Corporation, a manufacturing​ company, is analyzing its cost structure in a project to achieve some cost savings. Which of the following statements​ is/are correct?
    I. The cost of the direct materials in Applewhite​'s products is considered a variable cost.
    II. The cost of the depreciation of Applewhite​'s plant machinery is considered a variable cost because Applewhite uses an accelerated depreciation method for both book and income tax purposes.
    III. The cost of electricity for Applewhite​'s manufacturing facility is considered a fixed​ cost, even if the cost of the electricity has both variable and fixed components.
    

    1. A​I, II, and III are correct.
    2. BI only is correct.
    3. CII and III only are correct.
    4. DNone of the listed choices is correct.
24. 24Frisco Corporation is analyzing its fixed and variable costs within its current relevant range. As its cost driver activity changes within the relevant​ range, which of the following statements​ is/are correct?
    I. As the cost driver level​ increases, total fixed cost remains unchanged.
    II. As the cost driver level​ increases, unit fixed cost increases.
    III. As the cost driver level​ decreases, unit variable cost decreases.

    1. AI only is correct. -- As the cost driver level​ increases, total fixed cost remains unchanged.
    2. BI and II only are correct.
    3. CII and III only are correct.
    4. DI, II, and III are correct.
25. 25Compute the missing amounts.
    
    The Variable Costs 5.00 and Fixed Costs for 6.00
    - If 8,000 units are produced
    - If 15,000 units are produced
    - if 48,000 units are produced
    
    Hint - do a table
    -
    

    1. AVariable cost 40k, 75k, 240 k
       Fixed Cost 48k
    2. Bsdsdsafsafasfas
    3. Czfgzgfsgfsgsfgsfgf
26. 26Gumball Candies manufactures jawbreaker candies in a fully automated process. The machine that produces candies was purchased recently and can make 4700 jawbreakers per month. The machine costs $ 7500 and is depreciated using​ straight-line depreciation over 10 years assuming zero residual value. Rent for the factory space and warehouse and other fixed manufacturing overhead costs total $1500 per month. Gumball currently makes and sells 3100 jawbreakers per month. Gumball buys just enough materials each month to make the jawbreakers it needs to sell. Materials cost $ 0.10 per jawbreaker. Next year Gumball expects demand to increase by​ 100%. At this volume of materials​ purchased, it will get a​ 10% discount on price. Rent and other fixed manufacturing overhead costs will remain the same.
    
    What is Gumball​'s current annual relevant range of​ output?

    1. A0 to 56,400 jawbreakers
    2. B7800000
    3. Cnada
27. 27c
    What is Gumball​'s current annual fixed manufacturing cost within the relevant​ range? What is the annual variable manufacturing​ cost?

    1. Afixed manufacturing costs 18,750
       variable manufacturing costs 3,720
       .
    2. Bsfadsfafsfsa
    3. C68799
28. 28Gumball Candies manufactures jawbreaker candies in a fully automated process. The machine that produces candies was purchased recently and can make 4700 jawbreakers per month. The machine costs $ 7500 and is depreciated using​ straight-line depreciation over 10 years assuming zero residual value. Rent for the factory space and warehouse and other fixed manufacturing overhead costs total $1500 per month. Gumball currently makes and sells 3100 jawbreakers per month. Gumball buys just enough materials each month to make the jawbreakers it needs to sell. Materials cost $ 0.10 per jawbreaker. Next year Gumball expects demand to increase by​ 100%. At this volume of materials​ purchased, it will get a​ 10% discount on price. Rent and other fixed manufacturing overhead costs will remain the same.
    
    What will Gumball​'s relevant range of output be next​ year? How if at​ all, will total annual fixed and variable manufacturing costs change next​ year? Assume that if it needs to Gumball could buy an identical machine at the same cost as the one it already has.
    
    If the demand increases by 100%, annual production will have to increase to this amount of jawbreakers next year to meet the expected increase

    1. A74,400
    2. Bdsfdsgggsgsgfgf
    3. Csfggdszdgs
29. 29Gumball has two​ options:
    
    a) leave demand in excess of the current capacity unfilled OR b) purchase an additional machine in order to meet demand.

    1. AYES YES
    2. BNAAAAAAAA
30. 30Gumball -- If the company decides to go with option​ (a), the variable cost per unit produced will
    stay the same
    
    and the annual fixed costs will
    stay the same.
    
    Should the company decide to go with option​ (b), the variable cost per unit produced will
    decrease by the amount of the discount
    
    and the annual fixed costs will
    increase due to additional depreciation.

    1. Ayes yess
    2. B,,,,,,,,,,,,,,,,,,,,,,,
31. 31Delora Corporation provides the following information for 2020:
    
    Beginning inventory of direct materials, January 1, 2020 $11,000
    Purchases of direct materials in 2020--------------------------$88,000 Ending inventory of direct materials, December 31,2020 $3,000
    Direct manufacturing labor costs in 2020 --------------------$25,000
    Manufacturing overhead costs in 2020-------------------------$44,000
    
    Calculate the total manufacturing costs incurred in 2020
    .

    1. AFirst Direct Materials used in 2020 96,000
       THEN Total manufacturing costs incurred in 2020 165,000
    2. BFHFDXHHXHGHX
32. 32Keiko Corporation provides the following information for 2020.
    
    Beginning work-in-process inventory, January 1, 2020------$8,000
    Total manufacturing costs incurred in 2020-----------------$158,000
    Ending work-in-process inventory, December 31, 2020 $12,000
    Beginning inventory of finished goods, January 1, 2020 $12,000
    Ending inventory of finished goods, December 31, 2020 $20,000
    
    Calculate​ (a) Cost of goods manufactured in 2020 and​ (b) Cost of goods sold in 2020
    .

    1. AFirst - get Cost of goods manufactured in 2020
       THEN Cost of goods sold in 2020
       .
    2. BZSGDHHZHXDG
33. 33The following information was extracted from the accounting records of Delaware Manufacturing​ Company:
    
    Direct materials purchased ----------------------------$78,000
    Direct materials used --------------------------------------72,000
    Direct manufacturing labor costs------------------------8,500
    Indirect manufacturing labor costs----------------------9,500
    Sales salaries---------------------------------------------------13,500
    Other plant expenses---------------------------------------18,000
    Selling and administrative expenses-------------------15,000
    
    What was the cost of goods​ manufactured?

    1. A$108,000
    2. Bdsggsggsfg
34. 34Tulsa Office Equipment manufactures and sells metal shelving. It began operations on January​ 1, 2020.
    
    Costs incurred for 2020 are as follows​ (V stands for​ variable; F stands for​ fixed):
    Direct materials used-----------------------------$142,000 V
    Direct manufacturing labor costs--------------$32,000 V
    Plant energy costs-------------------------------------$4,000 V
    Indirect manufacturing labor costs------------$12,000 V
    Indirect manufacturing labor costs------------$18,000 F
    Other indirect manufacturing costs----------$13,000 V
    Other indirect manufacturing costs----------$15,000 F
    Marketing, distribution, and customer-service costs-----$129,000 V
    Marketing, distribution, and customer-service costs-------$45,000 F
    Administrative costs-------------------------------$55,000 F
    Variable manufacturing costs are variable with respect to units produced. Variable​ marketing, distribution, and​ customer-service costs are variable with respect to units sold.
    
    1.Calculate direct materials​ inventory, total​ cost, December​ 31, 2020.
    2.Calculate​ finished-goods inventory, total​ units, December​ 31, 2020.
    3.Calculate selling price in 2020.
    4.Calculate operating income for 2020.

    

    1. AEnding direct materials total cost : 1,420
       Cost of goods manufactured
       $203,000
       $33,000
       $236,000
       Ending finished goods inventory in units 12,000
       Total revenues ÷ Total units sold = Selling price
       The 2020 selling price is 5.40
       Inc Sta.
       BEG,
       COST OF G.M
       C.G.AV.4SALE
       END.FIN.GOD
       GROSS
       Operating income (loss) $38,520
    2. Bhfdzhhfz

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Quiz on ACCT 302A - CSUF - 2022, created by Orfa Cartagena on 12/03/2022.

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