\$7.00

# ACCT 434 Week 3 Quiz – DeVry

1. (TCO 3) McDevitt Company employs six individuals.  Each is paid \$12.50 per hour.  How would total costs of personnel be classified? (Points : 3)

2. (TCO 3) For January, the cost components of a picture frame include \$0.35 for the glass, \$0.65 for the wooden frame, and \$0.80 for assembly.  The assembly desk and tools cost \$400.  A total of 1,000 frames is expected to be produced in the coming year.  What cost function best represents these costs? (Points : 3)

3. (TCO 3) Which cost estimation method may use time-and-motion studies to analyze the relationship between inputs and outputs in physical terms? (Points : 3)

4. TCO 3) Penny’s TV and Appliance Store is a small company that has hired you to perform some management advisory services.  The following information pertains to 20X2 operations.  Sales (2,000 televisions) \$900,000; Cost of goods sold \$400,000; Store manager’s salary per year \$70,000; Operating costs per year \$157,000; Advertising and promotion per year \$15,000; Commissions (4% of sales) \$36,000.  What were total fixed costs for 20X2? (Points : 3)

5. (TCO 4) A decision model involves (Points : 3)

6. (TCO 4) When using the five-step decision process, which one of the following steps should be done first? (Points : 3)

7. (TCO 4) Sunk costs (Points : 3)

8. (TCO 4) Black Tool Company has a production capacity of 1,500 units per month, but production is only 1,250 units.  The manufacturing costs are \$60 per unit and marketing costs are \$16 per unit.  Doug Hall offers to purchase 250 units at \$76 each for the next five months.  Should Black accept the one-time-only special order if only absorption-costing data are available? (Points : 3)

9. (TCO 5) The theory of constraints is used for cost analysis when (Points : 3)

10. (TCO 5) Producing more nonbottleneck output (Points : 3)

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1. (TCO 3) McDevitt Company employs six individuals. Each is paid \$12.50 per hour. How would total costs of personnel be classified? (Points : 5)

2. (TCO 3) For January, the cost components of a picture frame include \$0.35 for the glass, \$0.65 for the wooden frame, and \$0.80 for assembly. The assembly desk and tools cost \$400. A total of 1,000 frames is expected to be produced in the coming year. What cost function best represents these costs? (Points : 5)

3. (TCO 3) Which cost estimation method analyzes accounts in the subsidiary ledger as variable, fixed, or mixed using qualitative methods? (Points : 5)

4. (TCO 3) Penny’s TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 20X2 operations: Sales (2,000 televisions) \$900,000; Cost of goods sold \$400,000; Store manager’s salary per year \$70,000; Operating costs per year \$157,000; Advertising and promotion per year \$15,000; Commissions (4% of sales) \$36,000. What are the estimated total costs if Penny’s expects to sell 3,000 units next year? (Points : 5)

5. (TCO 4) A decision model involves (Points : 5)

6. (TCO 4) When using the five-step decision process, which one of the following steps should be done first? (Points : 5)

7. (TCO 4) Sunk costs (Points : 5)

8. (TCO 4) Northwoods Incorporated manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be \$90 per table, consisting of 80% variable costs and 20% fixed costs. The company has surplus capacity available. It is Northwoods’ policy to add a 50% markup to full costs. A large hotel chain is currently expanding and has decided to decorate all new hotels using the rustic style. Northwoods is invited to submit a bid to the hotel chain. What is the lowest price per unit Northwoods should bid on this long-term order? (Points : 5)

1. (TCO 5) Piels Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows.
Direct materials \$ 90,000
Direct labor 130,000