Question 1 Stroman Inc. manufactures wooden floors by milling


Question Description:

35

Hello. Can you please provide solutions to the attached within the next hour or so? Thanks! 19 questions.pdf Question 1 Stroman Inc. manufactures wooden floors by milling rough lumber and then applying various finishes to the wood. Which of the following are the best adjectives to describe the cost of rough lumber to Stroman? The quantity of flooring produced is the driver. a. Fixed & Product b. Fixed & Period c. Variable & Product d. Variable & Period Question 2 Stroman from the prior problem computed straight-line depreciation on its wood milling equipment to be $400,000 in 2015. How should Stroman account for the $400,000 for financial reporting purposes? a. $400,000 is an expense in 2015. b. $400,000 is initially capitalized and subsequently expensed as the flooring produced in 2015 is sold. c. $400,000 is capitalized in 2015 and then amortized over the next 10 years. Question 3 Internal reports prepared by the managerial accountants in an organization typically a. Must follow very specific and detailed rules. b. Are intended to be general purpose rather than customized to the information needs of particular users. c. Both a & b d. Neither a nor b Question 4 The relevant range is most important for distinguishing a. product vs period costs b. variable vs fixed costs c. direct vs indirect cost d. none of the above Question 5 The Staley Co. pays a shipping company $600 to transport its finished goods to its customer’s warehouse. Which of the following best describes this $600 cost? In answering the question, number of units produced is the cost driver. a. Variable period cost b. Fixed period cost c. Variable product cost d. Fixed product cost Question 6 Which adjective in front of the word "cost" is most prominent when applying the principles of responsibility accounting? a. Variable b. Product c. Controllable d. Sunk e. All of the above Question 7 The first step in the budgeting process at most for-profit entities is to a. Establish standard costs b. Compute the predetermined overhead application rate c. Predict net cash flows for the next period d. Predict sales levels for the next period More questions on the following pages……. Question 8 Which of the following factors would produce an unfavorable static budget variance for raw materials but would not affect the flexible budget variance for raw materials? a. The price paid per unit for raw materials exceeded the standard price per unit of input that should have been paid. b. The usage of raw materials exceeded the standard amount that should have been used for the number of units actually produced. c. The usage of raw materials exceeded the amount in the beginning-of-year budget because the company produced more output than expected. d. All of these factors affect both static and flexible budget variances Question 9 The Alaina Co. manufactures clay pots. It expects to produce 600 pots during March 2016. Each pot requires 2 pounds of clay. Alaina wants to have 95 pounds in clay at the end of March, and the company plans to buy 1,225 pounds of clay in March. Based on this information, how many pounds of clay does Alaina have in inventory at the beginning of March? a. 85 pounds b. 120 pounds c. 135 pounds d. 70 pounds e. 0 pounds f. None of the above Question 10 The Sessions Co. wants to use past data to classify the behavior of compensation costs in the production department. The data below (in thousands) reveal the compensation costs for workers and the number of units produced. Compute the slope of the cost function using the high-low method. Year Costs Units produced 2015 $200 50 2014 $258 62 2013 $194 53 2012 $320 80 2011 $296 72 2010 $309 78 Question 10 continued on next page….. a. $4/unit b. $4.66/unit "ish" c. $4.2/unit d. None of the above Question 11 In a firm using standard costing, using a larger than expected percentage of the most skilled workers (and a smaller than expected percenta

Answer

35