Question 1 (Multiple Choice Worth 2 points)

After careful planning, Jammu Manufacturing Corporation has decided to switch to a just-in-time inventory system. At the beginning of this switch, Jammu has 30 units of product in inventory. Jammu has 2,000 labor hours available in the first month of this switch. These hours could produce 500 units of product. Customer demand for this first month is 400 units. If just-in-time principles are correctly followed, how many units should Jammu plan to produce in the first month of the switch?

370

400

430

470

Question 2 (Multiple Choice Worth 2 points)

Management accounting focuses primarily on providing data for:

internal uses by managers.

external uses by stockholders and creditors.

external uses by the Internal Revenue Code.

external uses by the Securities and Exchange Commission.

Question 3 (Multiple Choice Worth 2 points)

The costs of staffing and operating the accounting department at Central Hospital would be considered by the Department of Surgery to be:

direct costs.

indirect costs.

incremental costs.

opportunity costs.

Question 4 (Multiple Choice Worth 2 points)

The following costs were incurred in March:

Prime costs during the month totaled:

$63,000

$107,000

$38,000

$77,000

Question 5 (Multiple Choice Worth 2 points)

Using the following data for March, calculate the cost of goods manufactured:

The cost of goods manufactured was:

$74,000

$86,000

$76,000

$75,000

Quiz 2

Question 1 (Multiple Choice Worth 2 points)

Johnson Company has provided the following data for the first five months of the year:

Month January February March April May

Machine Hours 120 160 200 150 170

Lubrication Cost $750 $800 $870 $790 $840

Using the high-low method of analysis, the estimated variable lubrication cost per machine hour is closest to:

$1.25

$0.67

$1.50

$1.40

Question 2 (Multiple Choice Worth 2 points)

Under a job-order costing system, the dollar amount transferred from Work in Process to Finished Goods is the sum of the costs charged to all jobs:

started in process during the period.

in process during the period.

completed and sold during the period.

completed during the period.

Question 3 (Multiple Choice Worth 2 points)

Wall Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. The company's estimated costs for the next year are:

Direct materials--$3,000 Direct labor--$20,000 Depreciation on factory equipment--$6,000 Rent on factory--$12,000 Sales salaries--$29,000 Factory utilities--$15,000 Indirect labor--$6,000 It is estimated that 10,000 direct labor hours will be worked during the year. The predetermined overhead rate will be:

$3.90

$5.90

$6.80

$9.10

Question 4 (Multiple Choice Worth 2 points)

Crick Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 14,400 hours and the total estimated manufacturing overhead was $355,680. At the end of the year, actual direct labor-hours for the year were 15,200 hours and the actual manufacturing overhead for the year was $350,680. Overhead at the end of the year was:

$24,760 underapplied

$24,760 overapplied

$19,760 underapplied

$19,760 overapplied

Question 5 (Multiple Choice Worth 2 points)

In the standard cost formula Y = a + bX, what does the "X" represent?

total fixed cost

variable cost per unit

units of activity

total cost