Name: ____________________________________

ACCT 6273

Final Exam

100 points, total.

For partial credit, formulas and work, appropriately labeled, must be shown. There is no partial credit for multiple choice or true/false questions.

 

1.      Lincoln Company manufactures and sells small electric heaters for homes and offices.  The company’s income statement for the FY2014 is given below:

 

                                                                                       Total           Per unit

Sales (30,000 units)                       $1,800,000                  $60

Less variable expenses                    1,440,000                    48

Contribution margin                            360,000                  $12

Less fixed expenses                            264,000

Net income                                      $   96,000

 

 

a.       Compute the company’s break-even point in units. [8 points]

 

 

 

 

 

 

 

 

 

 

                                                                                         Answer____________________

b.      If Lincoln Company increases its price to $100, do you expect the breakeven point in units to be more or less than the number you calculated in question 1a above? Why?

 

Circle (or highlight) one [1 point]: More than question 1a                    Less than question 1a 

 

Explain why, but do not use calculations.  [3 points]

 

 

 

 

 

 

c.       Confirm your answer to question 1a above by preparing a contribution margin income statement.  [4 points]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d.      Assume that next year management wants the company to earn a minimum profit of $162,000.  How many units  be sold to meet this target profit figure? [3 points]

 

 

 

 

 

 

 

 

 

 

 

Answer: ____________________

 

 

 

 

The following information pertains to the next three questions 2-4.

Fifer Company produces two types of entry doors: the Hollow Core and the Solid Door models. The Company has used direct labor dollars to allocate the overhead cost of $47,450,000.

 

The company’s CFO, Brian Smythe, has offered the following information regarding the two products:

The company has hired you as an outside consultant to review the cost system and make recommendations.  You decide that an Activity Based Cost system should be considered and compile the following information based on conversations with the production manager:

 

The number of transactions for each cost driver is as follows:

 

 

 

 

2. Compute the product cost per door (i.e., per unit) using the traditional allocation system based on direct labor dollars [8 points]

 

 

 

 

 

                                                Hollow Core                                       Solid Door

 

 

Product Cost per door              ____________                                    ____________

3.  Compute the product cost per door (per unit) using activity based costing for each product.         [10 points]

 

                                                Hollow Core                                       Solid Door

 

 

 

 

 

 

 

 

 

Product Cost per door              ____________                                    ____________

4.  How should Mr. Smythe explain the reasons for any differences observed in your analysis above?         [4 points]

 

 

5.      Barker Company produces a single product.  The standard direct costs for the product are as follows:

      Direct materials (4 yds.@ $5/yd.)                                  $20

      Direct labor (1.5 hrs.@ $10/hr.)                                     $15

During a recent period the company produced 1,200 units of product.  Various costs associated with the production of these units are given below:

      Direct materials purchased (5,000 yds.)                 $24,500

      Direct materials used in production                    4,700 yds.

      Direct labor cost incurred (1,900 hours)                 $18,297

 

a.       The materials price variance for the period is: [4 points]

Answer: _______________

b.      The materials quantity (or usage) variance for the period is: [4 points]

Answer: ______________

c.       The labor rate variance for the period is: [4 points]

Answer: ______________

d.      The labor efficiency variance for the period is: [4 points]

 

 

 

 

Answer: ______________

6.      Youngstown Company provides the following standard cost data:

Direct Material (3 gallons @ $5 per gallon)              $15.00
Direct Labor (2 hours @ $12 per hour)                    $24.00

During the period, Youngstown Company produced and sold 24,000 units.  Following are the amounts of material and labor used to produce the 24,000 units, and their respective actual costs:

Direct Material:  73,100 gallons at $5.05 per gallon
Direct Labor:      48,000 hours at $12.08 per hour

Circle (or highlight) the correct answer.

a.       The Direct Material price variance was: [3 points]

A) F
B) U
C) 0

b.      The Direct Material usage variance was: [3 points]

A) F
B) U
C) 0

c.       The Direct Labor rate variance was: [3 points]

A) F
B) U
C) 0

d.      The Direct Labor efficiency variance was: [3 points]

A) F
B) U
C) 0

 

7.      Following is Perry Corporation’s original budget for 2013, and their actual results for 2013. [32 points]

 

 

 

 

 

 

 

Using the format on the following page, prepare the flexible budget needed to evaluate Perry Corporation’s performance for 2013, and compute the Flex-Actual Variances.  Show your calculations.

 

Put your answers to Question 7 here:

 

 

 

SmartExpert

(118)

Status NEW Posted 19 Apr 2017 05:04 AM My Price 24.00

ACC-----------T 6-----------273----------- Fi-----------nal----------- Ex-----------am -----------Ans-----------wer----------- Fi-----------le-----------

Attachments

file 1492581146-ACCT 6273 Final Exam NEW VERSION 2016 Answers.docx preview (2458 words )

N-----------ame-----------: _-----------___-----------___-----------___-----------___-----------___-----------___-----------___-----------___-----------___-----------___-----------___-----------__ ----------- AC-----------CT -----------627-----------3 -----------Fin-----------al -----------Exa-----------m -----------100----------- po-----------int-----------s, -----------tot-----------al.----------- ----------- Fo-----------r p-----------art-----------ial----------- cr-----------edi-----------t, -----------for-----------mul-----------as -----------and----------- wo-----------rk,----------- ap-----------pro-----------pri-----------ate-----------ly -----------lab-----------ele-----------d, -----------mus-----------t b-----------e s-----------how-----------n. -----------The-----------re -----------is -----------no -----------par-----------tia-----------l c-----------red-----------it -----------for----------- mu-----------lti-----------ple----------- ch-----------oic-----------e o-----------r t-----------rue-----------/fa-----------lse----------- qu-----------est-----------ion-----------s. ----------- Pr-----------obl-----------em -----------1 -----------Sin-----------ce -----------its----------- in-----------cep-----------tio-----------n, -----------Mon-----------ter-----------ey -----------Cor-----------por-----------ati-----------on -----------has----------- pr-----------odu-----------ced----------- a -----------sin-----------gle----------- pr-----------odu-----------ct,----------- Pr-----------odu-----------ct -----------A24-----------. -----------The----------- co-----------mpa-----------ny -----------add-----------ed -----------the----------- te-----------chn-----------olo-----------gic-----------al -----------cap-----------abi-----------lit-----------y t-----------o b-----------egi-----------n p-----------rod-----------uci-----------ng -----------a s-----------eco-----------nd -----------pro-----------duc-----------t, -----------Pro-----------duc-----------t D-----------36.-----------

file 1503207487-ACCT 6273 Final Exam Answer File.docx preview (1716 words )

N-----------ame-----------: _-----------___-----------___-----------___-----------___-----------___-----------___-----------___-----------___-----------___-----------___-----------___-----------__ ----------- AC-----------CT -----------627-----------3 -----------Fin-----------al -----------Exa-----------m -----------100----------- po-----------int-----------s, -----------tot-----------al.----------- F-----------or -----------par-----------tia-----------l c-----------red-----------it,----------- fo-----------rmu-----------las----------- an-----------d w-----------ork-----------, a-----------ppr-----------opr-----------iat-----------ely----------- la-----------bel-----------ed,----------- mu-----------st -----------be -----------sho-----------wn.----------- Th-----------ere----------- is----------- no----------- pa-----------rti-----------al -----------cre-----------dit----------- fo-----------r m-----------ult-----------ipl-----------e c-----------hoi-----------ce -----------or -----------tru-----------e/f-----------als-----------e q-----------ues-----------tio-----------ns.----------- L-----------inc-----------oln----------- Co-----------mpa-----------ny -----------man-----------ufa-----------ctu-----------res----------- an-----------d s-----------ell-----------s s-----------mal-----------l e-----------lec-----------tri-----------c h-----------eat-----------ers----------- fo-----------r h-----------ome-----------s a-----------nd -----------off-----------ice-----------s. ----------- Th-----------e c-----------omp-----------any-----------’-----------s i-----------nco-----------me -----------sta-----------tem-----------ent----------- fo-----------r t-----------he -----------FY2-----------014----------- is----------- gi-----------ven----------- be-----------low-----------: -----------Tot-----------alP-----------er -----------uni-----------t -----------Sal-----------es -----------(30-----------,00-----------0 u-----------nit-----------s)$-----------1,8-----------00,-----------000-----------$60-----------

Not Rated(0)

• Buy Answer