Cost Accounting Question Paper

1. Human resource is an pillowcase of (an) (Points 2) Unit-level legal action. Batch-level activity. return-level activity. Organization-sustaining activity. 2. Which of the sideline is not a limit of activity-based be? (Points 2) Maintaining an activity-based being system is more(prenominal) termsly than maintaining a traditional contain restriction-based costing system. Changing from a traditional direct labor-based costing system to an activity-based costing system changes return margins and other cite performance indicators utilize by managers.Such changes argon often resisted by managers. In practice, close managers insist on fully solelyocating all costs to products, customers, and other costing objects in an activity-based costing system. This results in overstated costs. more than accu score product costs may result in increasing the sell charges of some products. 3. Matt Company uses activity-based costing. The alliance has two products A and B. The a nnual work and sales of Product A is 8,000 wholes and of Product B is 6,000 units.There are three activity cost pools, with check cost and total activity as follows use cost poolTotal cost natural action for Product AActivity for Product BTotal Activity Activity 1$20,000100400500 Activity 2$37,0008002001,000 Activity 3$91,2008003,0003,800 The activity-based costing cost per unit of Product A is closest to (Points 4) $2. 40 $3. 90 $10. 59 $6. 60 4. Which of the by-line activities would be classified as a batch-level activity? (Points 2) Setting up equipment. blueprint a new product. Training employees. mill about a part required for the lowest product. . The purchasing agent of the Clampett Company enjoin materials of lower quality in an exertion to economize on harm and in response to the demands of the proceeds manager receivable to a mistake in turnout scheduling. The materials were shipped by airfreight at a locate higher than that ordinarily charged for communi que by truck, resulting in an un halcyon materials price variance. The lower quality material turn out to be unsuitable on the employment line and resulted in excessive waste. In this situation, who should be held responsible for the materials price and cadence variances? Points 2) Materials price variance Purchasing agent Materials quantity variance Purchasing mover Materials price variance Production film director Materials quantity variance Production animal trainer Materials price variance Production motorbus Materials quantity variance Purchasing gene Materials price variance Purchasing constituent Materials quantity variance Production tutor 6. Todco planned to produce 3,000 units of its single product, Teragram, during November. The archetype specifications for one unit of Teragram include six-spot pounds of material at $0. 30 per pound. factual production in November was 3,100 units of Teragram. The accountant computed a favorable materials purchase price varia nce of $380 and an bad materials quantity variance of $120. Based on these variances, one could conclude that (Points 2) more materials were purchased than were used. more materials were used than were purchased. the unfeigned cost of materials was slight(prenominal) than the standard cost. the veritable usage of materials was less than the standard allowed. 7. The materials quantity variance should be computed (Points 2) when materials are purchased. ased upon the amount of materials used in production. based upon the difference between the effective and standard prices per unit times the actual quantity used. only when there is a difference between standard and actual cost per unit for the materials. 8. The sideline materials standards take a leak been established for a finical product type quantity per unit of take = 7. 3 pounds Standard price = $14. 45 per pound The following data relate to operations concerning the product for the last calendar month real(a) mate rials purchased = 6,600 pounds Actual cost of materials purchased = $91,740Actual materials used in production = 5,900 pounds Actual create = 1,000 units What is the materials quantity variance for the month? (Points 4) $19,460 F $9,730 U $10,115 U $20,230 F 9. The following materials standards have been established for a particular product Standard quantity per unit of sidetrack = 4. 6 feet Standard price = $19. 25 per feet The following data resuscitate to operations concerning the product for the last month Actual materials purchased = 3,200 feet Actual cost of materials purchased = $63,200 Actual materials used in production = 2,900 feetActual output = 800 units What is the materials price variance for the month? (Points 4) $15,405 F $5,775 U $5,925 U $1,600 U 10. The following labor standards have been established for a particular product Standard labor time of days per unit of output = 1. 5 hours Standard labor rate = $17. 55 per hour The following data pertain to operat ions concerning the product for the last month Actual hours worked = 5,300 hours Actual total labor cost = $94,340 Actual output = 3,600 units What is the labor rate variance for the month? (Points 4) $1,325 U $1,780 F $430 F $430 U