1. In computing its predetermined overhead rate, Marple Company


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please open the attachment. there are my questions Managerial accounting.docx 1. In computing its predetermined overhead rate, Marple Company inadvertently left its indirect labor costs out of the computation. This oversight will cause: A. Manufacturing Overhead to be overapplied. B. The Cost of Goods Manufactured to be understated. C. The debits to the Manufacturing Overhead account to be understated. D. The ending balance in Work in Process to be overstated. 2. Which of the following is the correct formula to compute the predetermined overhead rate? A. Estimated total units in the allocation base divided by estimated total manufacturing overhead costs. B. Estimated total manufacturing overhead costs divided by estimated total units in the allocation base. C. Actual total manufacturing overhead costs divided by estimated total units in the allocation base. D. Estimated total manufacturing overhead costs divided by actual total units in the allocation base. 3. Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves? A. Machine-hours B. Power consumption C. Direct labor-hours D. Machine setups 4. What document is used to determine the actual amount of direct labor to record on a job cost sheet? A. Time ticket B. Payroll register C. Production order D. Wages payable account 5. A proper journal entry to close overapplied manufacturing overhead to Cost of Goods Sold would be: A. B. C. D.MANAGERIAL ACCOUNTING – X122 MID-TERM 2 OF 27 Solum Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, V47Q and K41P, about which it has provided the following data: V47Q K41P Direct materials per unit $27.50 $62.10 Direct labor per unit $15.60 $52.00 Direct labor-hours per unit 0.60 2.00 Annual production 40,000 15,000 The company’s estimated total manufacturing overhead for the year is $2,449,440 and the company’s estimated total direct labor-hours for the year is 54,000. The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Activity & Activity Measures Estimated Overhead Cost Assembling products (DLHs) Preparing batches (batches) $ 918,000 397,440 Product support (product variations) 1,134,000 Total $2,449,440 Expected Activity V47Q K41P Total DLHs 24,000 30,000 54,000 Batches 1,458 1,026 2,484 Product variations 2,592 1,188 3,780 6. The unit product cost of product K41P under the company’s traditional costing system is closest to: A. $204.82 B. $68.70 C. $182.80 D. $114.10 7. The unit product cost of product V47Q under the activity-based costing system is closest to: A. $53.30 B. $70.32 C. $43.10 D. $78.57 Diltex Farm Supply is located in a small town in the rural west. Data regarding the store’s operations follow: Sales are budgeted at $200,000 for November, $220,000 for December, and $210,000 for January. Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible. The cost of goods sold is 62% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 50% of the next month’s cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $22,500. Monthly depreciation is $19,000. Ignore taxes.MANAGERIAL ACCOUNTING – X122 MID-TERM 3 OF 27 Statement of Financial Position October 31 Assets Cash $ 16,000 Accounts receivable (net of allowance for uncollectible accounts) Merchandise inventory 76,000 71,500 Property, plant & equipment (net of $536,000 accumulated depreciation) Total assets $1,119,500 Liabilities & Stockholders

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