AYB225 Management Accounting Past examination questions, and additional practice questions Questions 1-5 Standard absorption costing and variances (lectures 5 and 6) Questions 6-12 AC/VC (lecture 7) Questions 13-15 Weighted average process costing (lecture 8) Questions 16-18 Service department allocation (lecture 9) Questions 19-22 Joint cost allocation (lecture 9) Available past exam questions exist for lectures 5-9 only. There are none available for lectures 10-11. Providing you with these questions in no way indicates or limits the type of questions on the final exam. You are advised in preparing for the final examination to work through all your lecture material, and through all the practice and …show more content…
Budgeted total overhead at denominator capacity is $45,900. The following are the actual results of the firm for the month of October, 1997: Labour cost (rate paid $6.80 per hour) $20,468 Actual variable overhead $23,250 Actual fixed overhead $22,760 Actual units produced 320 units REQUIRED: a) Calculate the labour rate and efficiency variances for the month. (2 marks) b) Calculate the overhead variances using the four-variance method. (4 marks) c) How many units is denominator capacity? (1 mark) d) What is the amount of budgeted fixed overhead at denominator capacity? (1 mark) e) Show the journal entries for: a. Actual overhead incurred b. Overhead applied to production (2 marks) f) What amount would be debited to WIP for overhead if: a. Standard direct costing had been used instead of absorption costing? b. Normal absorption costing had been used instead of standard absorption costing? (2 marks) QUESTION 4 The Bluechip Corporation employs a standard costing system to cost its production of widgets. From notes scattered on the desk of the cost accountant, you are able to assemble the following pieces of data: i) The total standard cost of each widget includes: Direct Materials (5 square feet of Y @ $0.60/sq.foot) $3.00 Direct Labour (4 hours @ $2.00 per hour) $8.00 ii) The total labour variance (LRV + LEV) to be explained is $200
Use the lecture folder to help you complete this guide. The more detail you can provide the better prepared for the test you will be.
Review the sample syllabus and sample rubric under the questions below. Then, provide answers underneath the following questions:
and types of questions) will be presented at the start of the class prior to the exam. The
This study guide prepares you for the Final Examination you complete in the last week of the course. It contains practice questions, which are related to each week’s objectives. Highlight the correct response, and then refer to the answer key at the end of this Study Guide to check your answers.
Three of the four questions below will appear on the exam and you will be asked to address all three. Maximum: Three sentences for each question.
The standard costs and variances for direct materials, direct labor, and factory overhead for the month of May are as follows:
The details of the three proposals that offer specific quantities of widgets and their prices are as follows. Greenleaf Manufacturing has offered to manufacture up to 6,000,000 widgets per year at a cost of $5.01 each. Sunrise LTD in Quanzhou, China has offered to manufacture 100% of Mrs. Smithson’s needs at a cost of $4.01 each. The third offer comes from Groupo Embarco located in Brazil offers to manufacture 10,000,000 widgets per year at a cost of $3.83 each, with the willingness to expand his operations to provide more widgets if required.
2. Lee Company manufactures chemical additives for industrial applications. As the new cost accountant for Lee, you have been assigned the task of completing the production cost report for January. Lee uses Weighted-Average Method of process costing. The following info pertains to January:
This issue reflects a problem with Integrity and Ethical Values factor of the internal environment. Policy is important to and the foundation of an effective ethics program. Policy addresses a variety of behavioral issues, such as integrity and ethics, conflicts of interest, illegal or otherwise improper payments, and anticompetitive arrangements. So there is no problem on this factor.
The following are study questions for the examination. The examination will be a closed-book examination.
Wilkerson employs a Normal Cost System, which means that they use predetermined overhead rates along with actual costs for direct material and direct labor. Normal costing systems are appropriate when overhead costs are a relatively small percentage of total manufacturing costs and product diversity is limited. For Wilkerson, normal costing does not make sense. Overhead costs make up over 50 percent of total manufacturing costs and their product offering is relatively more diverse. This indicates that the current accounting system in place may be distorting costs significantly. Supporting data:
This study guide is organized by lecture topics. Within each topic is listed the major areas that may be included on the examination. You are responsible for the content that falls within each major area.
Bhimani, A., Horngren, C., Datar, S., Rajan, M. et al. (2012) Management and Cost Accounting. 5th ed. Edinburgh: Prentice Hall, p.369 - 378.
INTRODUCTION Businesses – from manufacturing, merchandising and service industries alike – take careful consideration in the analysis of their costing systems in order to be able to set up competitive prices in the market. Misallocation of costs may lead to incorrect price estimates, continuous production of unprofitable products, and ineffective processing schedules. In this case study, we will discuss the costing methods which Zauner Ornaments have used or is currently using and, in conclusion, be able to distinguish the advantages and disadvantages of each costing method. CASE CONTEXT The case seeks to assist Zauner’s comptroller, Yu Chia-yi, in determining the best costing method for their overhead costs. In addition we also aim to
Ron Barber, CPA, is auditing the financial statements of DGF, Inc., a publicly held company. During the course of the audit, Barber discovered that DGF has been making illegal bribes to foreign government officials to obtain business, and he reported the matter to senior management and the board of directors of DGF.