accounting-Jose Company uses a job order cost system.

QUESTION

FINAL EXAM ‐ ACCT 301 ‐ Fall 2015Name:Section:Date:1.(Multiple Choice)Jose Company uses a job order cost system. At the end of an accounting period, Jose has a debitbalance in the Factory Overhead account. This would indicate:A.B.C.D.E.2.a loss for the period.underapplied overhead.overapplied overhead.a malfunction in the job order cost system.None of these.(Multiple Choice)The budgeting process would normally begin with the preparation of a:A.B.C.D.E.3.cash budget.capital expenditure budget.sales budget.production budget.None of these.(Multiple Choice)What type of direct material variances for usage and price will arise if the actual number of poundsof materials used exceeds standard pounds allowed but actual cost was less than standard cost?A.B.C.D.E.4.Unfavorable usage, but favorable priceFavorable usage, and favorable priceUnfavorable usage, and unfavorable priceCannot be determined from the information given.None of these.(Multiple Choice)Which of the following decisions would necessarily result in an increase in profit ordecrease in loss?A.B.C.D.E.Eliminating the sale of all products that are priced below variable cost.Eliminating the sale of all products that are priced below absorption cost.Eliminating the sale of all products if the firm has a loss.Not eliminating the sale of any products if the firm is profitable overall.None of these.5.(True or False)Residual Income = Operating Income – (Operating Assets X Cost of Capital)6.(Multiple Choice)In selecting between production of two different products, the best course of action is to:A.B.C.D.E.7.select the option which produces the highest per unit contribution margin.select the option which allows the most units to be produced.select the option with the smallest fixed costs.select the option which will allow full utilization of productive capacity.None of these.(Multiple Choice)Another name for "pro forma financial statements" would be:A.B.C.D.E.8.computer generated financial statements.projected financial statements.historical cost financial statements.external use financial statements.None of these.(Essay)What would be the effect on a company’s net income of discontinuing a department witha contribution margin of $16,000 and allocated overhead of $32,000 (of which $14,000cannot be eliminated)?9.(Essay)On May 21, Vincent worked 6 hours on Job 657, and 2 hours on general "overheadactivities." Vincent is paid $15 per hour. Overhead is applied based on $4 per directlabor hour. Job 657 also entailed $30 of direct material. On May 21, Vincent used $7 ofindirect material. Indirect material is included in the overhead application rate. Of theseamounts, how much total cost should be allocated to Job 657 for May 21?10.(Multiple Choice)Jose Company uses a job order cost system. At the end of an accounting period, Josehas a debit balance in the Factory Overhead account. This would indicate:A.B.C.D.E.a loss for the period.underapplied overhead.overapplied overhead.a malfunction in the job order cost system.None of these.11.(Multiple Choice)If beginning work in process was 600 units, 1,400 additional units were put intoproduction, and ending work in process was 500 units, how many units were completed?A.B.C.D.E.12.5009001,4002,000None of these.(Multiple Choice)Which of these alternatives would decrease contribution per unit margin the most?A.B.C.D.E.13.A 10 percent decrease in selling price.A 10 percent increase in variable expenses.A 10 percent increase in selling price.A 10 percent decrease in variable expenses.None of these.(Multiple Choice)Each of the following would affect the breakeven point except a change in the:A.B.C.D.E.14.number of units sold.variable costs per unit.total fixed costs.sales price per unit.None of these.(Multiple Choice)Anticipated unit sales are January, 5,000; February, 4,000; and March 8,000. Finishedgoods are consistently maintained at 80% of the following month’s sales. If units cost $10each to produce, how much is February’s total cost of production?A.B.C.D.E.$0$40,000$72,000$80,000None of these.15.(Multiple Choice)Which of the following is one of the purposes of standard costs?A.B.C.D.E.16.To aid in planning, controlling, and cost-volume-profit analysis.To replace budgets and budgeting.To use them as a basis for external-reporting purposes.To eliminate having to account for underapplied or overapplied factory overhead.None of these.(Multiple Choice)How is a labor rate variance computed?A.B.C.D.E.17.The difference between standard and actual rate multiplied by actual hours.The difference between standard and actual rate multiplied by standard hours.The difference between standard and actual hours multiplied by actual rate.The difference between standard and actual hours multiplied by standard rate.None of these.(Multiple Choice)Which of the following decisions would necessarily result in an increase in profit ordecrease in loss?A.B.C.D.E.18.Eliminating the sale of all products that are priced below variable cost.Eliminating the sale of all products that are priced below absorption cost.Eliminating the sale of all products if the firm has a loss.Not eliminating the sale of any products if the firm is profitable overall.None of these.(Multiple Choice)In calculating the controllable contribution margin, fixed costs should be subtracted fromthe contribution margin:A.B.C.D.E.in every case.if they are controllable by the segment’s management.if they are directly traceable to the segment.Both B and C.None of these.19.(Multiple Choice)In considering a special order situation that will enable a company to make use ofpresently idle capacity, which of the following costs would be irrelevant?A.B.C.D.E.20.MaterialsDepreciationDirect laborVariable overheadNone of these.(Multiple Choice)The type of costs presented to management for an equipment replacement decisionshould be limited to:A.B.C.D.E.relevant costs.standard costs.sunk costs.controllable costs.None of these.

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