file attached
061071 ACC112 Final Exam Course Managerial Accounting Welcome to the world of Managerial Accounting! It’s a practical world of analysis interpretation and problem solving. You’ll have to work through transactions, complete calculations and financial statements, and analyze and interpret your results to answer the questions. You’ll also need to keep your eye on the goal of sound decision making. Understanding how to apply what you learn in this Managerial Accounting course to everyday business situations can help make you a more effective decision maker. May your judgment be sound and your choices lead you to success. Course Objectives Demonstrate effective written and interpersonal skills Demonstrate job-specific technical and professional skills Demonstrate effective quantitative skills Demonstrate a high level of inquiry, analytical, and problem-solving Page 1Copyright Penn Foster, Inc. 2018 Course Version: 2 skills Analyze the various concepts related to managerial accounting and cost accounting Explain the different tools of management used for the decision- making process Identify the various budget analysis processes and the performance measurements for decision making Analyze the various components of capital budgeting, cash flow statements, and ratio analysis Solve examples of real-world accounting problems using knowledge of accounting forms and equations Managerial Accounting : ACC112 Final Exam Lesson 5 Overview Your final exam will allow you to put your managerial accounting skills to use in real-world scenarios. Be sure to follow the instructions carefully and review your course materials as needed. Page 2Copyright Penn Foster, Inc. 2018 Course Version: 2 5.1 Solve examples of real-world accounting problems using knowledge of accounting forms and equations ACC112 Final Exam READING ASSIGNMENT Your project must be submitted as a Word document (.docx, .doc)*. Your project will be individually graded by your instructor and therefore will take up to a few weeks to grade. Be sure that each of your files contains the following information: Your name Your student ID number The lesson number Your email address To submit your graded project, follow these steps: Go to http://www.pennfoster.edu. Log in to your student portal. Click on Take Exam next to the lesson you’re working on. Follow the instructions provided to complete your exam. Be sure to keep a backup copy of any files you submit to the school! Note: You should complete all lesson exams before you take the final exam. Complete the following exam by answering the questions and compiling your answers into a word-processing document. When you’re ready to submit your answers, refer to the instructions at the end. Be certain to indicate the proper question number before each of your answers. Remember to show your work if an answer requires a mathematical solution. Page 3Copyright Penn Foster, Inc. 2018 Course Version: 2 Answer each of the following 20 questions. Each answer is worth 5 points. Question 1: At an activity level of 8,800 units, Pember Corporation's total variable cost is $146,520 and its total fixed cost is $219,296. For the activity level of 8,900 units, compute the following values. Required: A. The total variable cost B. The total cost C. The average variable cost per unit D. The average fixed cost per unit E. The average total cost per unit Note: Assume that the activity level is within the relevant range. Question 2: Job 397 was recently completed. The following data have been recorded on its job cost sheet. Direct materials $59,400 Direct labor-hours 1,254 DLHs Direct labor wage rate $11 per DLH Number of units completed 3,300 units The company applies manufacturing overhead on the basis of direct Page 4Copyright Penn Foster, Inc. 2018 Course Version: 2 labor-hours. The predetermined overhead rate is $37 per direct labor- hour. Required: What's the unit product cost that would appear on the job cost sheet for this job? Question 3: Carver, Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. Work in process, beginning: Units in process 700 Percent complete with respect to materials 50% Percent complete with respect to conversion 40% Units started into production during the month 23,000 Work in process, ending: Units in process 200 Percent complete with respect to materials 80% Percent complete with respect to conversion 40% Page 5Copyright Penn Foster, Inc. 2018 Course Version: 2 Required: Using the weighted-average method, what are the equivalent units of production for materials and for conversion costs? Question 4: Hayek Corporation uses the FIFO method in its process costing. The following data concern the company's mixing department for the month of August. Materials Conversion Work in process, August 1 $31,734 $30,320 Cost added to production in the mixing department during August $91,332 $81,864 Equivalent units of production for August 7,740 7,580 Required: What are the cost per equivalent unit for materials and the cost per equivalent for conversion for the mixing department for August using the FIFO method? Question 5: Maddaloni International, Inc. produces and sells a single product. The product sells for $160.00 per unit, and its variable expense is $46.40 per unit. The company's monthly fixed expense is $219,248. Required: What's the monthly break-even in total dollar sales? Page 6Copyright Penn Foster, Inc. 2018 Course Version: 2 Question 6: Mitchel Corporation manufactures a single product. Last year, variable costing net operating income was $55,000. The fixed manufacturing overhead costs released from inventory under absorption costing amounted to $24,000. Required: What's the absorption costing net operating income from last year? Question 7: Calder Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Variable cost per unit: Direct materials $92 Fixed costs per year: Direct labor $720,000 Fixed manufacturing overhead $3,264,000 Fixed selling and administrative $1,935,000 The company doesn't have any variable manufacturing overhead costs or variable selling and administrative costs. During its first year of operations, the company produced 48,000 units and sold 45,000 units. The company’s only product sells for $258 per unit. Required: Page 7Copyright Penn Foster, Inc. 2018 Course Version: 2 What is the net operating income? Question 8: Mouret Corporation uses the following activity rates from its activity- based costing to assign overhead costs to products. Activity Cost Pools Activity Rate Setting up batches $92.68 per batch Processing customer orders $95.08 per customer order Assembling products $3.41 per assembly hour Last year, Product N79A required 28 batches, 6 customer orders, and 712 assembly hours. Required: How much total overhead cost would be assigned to Product N79A using the company's activity-based costing system? Question 9: The manufacturing overhead budget of Paparella Corporation is based on budgeted direct labor-hours. The November direct labor budget indicates that 6,000 direct labor-hours will be required in that month. The variable overhead rate is $2.00 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $79,200 per month, which includes depreciation of $21,000. All other fixed manufacturing overhead costs represent current cash flows. Page 8Copyright Penn Foster, Inc. 2018 Course Version: 2 Required: A. Determine the cash disbursements for manufacturing overhead for November. B. Determine the predetermined overhead rate for November. Question 10: Sund Corporation bases its budgets on the activity measure “customers served.” During April, the company plans to serve 38,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting: Fixed Element per Month Variable Element per Month Revenue --- $2.10 Wages and salaries $25,000 $0.50 Supplies $0 $0.30 Insurance $6,200 $0.00 Miscellaneous expenses $2,500 $0.40 Required: Prepare the company’s planning budget for April. What is the net operating income? Question 11: Shawl Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product F02E specifies Page 9Copyright Penn Foster, Inc. 2018 Course Version: 2 5.5 direct labor-hours per unit of F02E. The standard variable overhead rate is $6.80 per direct labor-hour. During the most recent month, 1,560 units of product F02E were made, and 8,700 direct labor-hours were worked. The actual variable overhead incurred was $52,635. Required: A. What was the variable overhead rate variance for the month? B. What was the variable overhead efficiency variance for the month? Question 12: Kingdon Corporation's manufacturing overhead includes $7.10 per machine-hour for variable manufacturing overhead and $207,000 per period for fixed manufacturing overhead. Required: What's the predetermined overhead rate for the denominator level of activity of 4,600 machine-hours? Question 13: Pinkney Corporation has provided the following data concerning its direct labor costs for November: Standard wage rate $12.20 per DLH Standard hours 5.3 DLHs per unit Actual wage rate $11.20 per DLH Page 10Copyright Penn Foster, Inc. 2018 Course Version: 2 Actual hours 39,720 DLHs Actual output 7,900 units Required: Show the journal entry to record the incurrence of direct labor costs. Question 14: Iba Industries is a division of a major corporation. The following data are for the latest year of operations: Sales $5,820,000 Net operating income $436,500 Average operating assets $2,000,000 The company's minimum required rate of return 18% Required: What is the division’s residual income? Question 15: Tullius Corporation has received a request for a special order of 8,000 units of product C64 for $50.00 each. The normal selling price of this product is $53.25 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product C64 is computed as follows: Direct materials $18.10 Page 11Copyright Penn Foster, Inc. 2018 Course Version: 2 Direct labor 7.40 Variable manufacturing overhead 5.20 Fixed manufacturing overhead 4.80 Unit production cost $35.50 Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product C64 that would increase the variable costs by $5.00 per unit and that would require a one-time investment of $43,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. Required: How much is the “effect” (incremental net operating income) on the company's total net operating income through accepting the special order? Question 16: (Ignore income taxes in this problem.) Hinck Corporation is investigating automating a process by purchasing a new machine for $520,000 that would have an eight-year useful life and no salvage value. By automating the process, the company would save $134,000 per year in cash operating costs. The company's current equipment would be sold for scrap now, yielding $22,000. The annual depreciation on the new machine would be $65