# PHOENIX ACC 455 Final Exam 2015 (100% ANSWER) - 89565

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1. The per-unit standards for direct labor are 2 direct labor hours at \$12 per hour. If in producing 2,400 units, the actual direct labor cost was \$51,200 for 4,000 direct labor hours worked, the total direct labor variance is

\$4,000 unfavorable

\$6,400 unfavorable

\$1,920 unfavorable

\$6,400 favorable

2. Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of setting up machines, \$800,000; machining, \$1,800,000; and inspecting, \$600,000. Information on the two products is:

Mini A Maxi B

Direct labor hours 15,000 25,000

Machine setups 600 400

Machine hours 24,000 26,000

Inspections 800 700

Overhead applied to Mini A using traditional costing using direct labor hours is

\$1,670,000

\$1,536,000

\$1,200,000

\$1,920,000

3. Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost \$22,000. If sales are expected to increase \$40,000, by how much will the company's net income increase?

\$18,000

\$12,000

\$6,000

\$28,000

4. The cost to produce Part A was \$10 per unit in 2005. During 2006, it has increased to \$11 per unit. In 2006, Supplier Company has offered to supply Part A for \$9 per unit. For the make-or-buy decision,

net relevant costs are \$1 per unit

differential costs are \$2 per unit

incremental costs are \$1 per unit

incremental revenues are \$2 per unit

5. Luca Company overapplied manufacturing overhead during 2006. Which one of the following is part of the year end entry to dispose of the overapplied amount assuming the amount is material?

An increase to cost of goods sold

An increase to finished goods

A decrease to work in process inventory

6. In most cases, prices are set by the

customers

selling company

largest competitor

competitive market

7. Max Company uses 10,000 units of Part A in producing its products. A supplier offers to make Part A for \$7. Max Company has relevant costs of \$8 a unit to manufacture Part A. If there is excess capacity, the opportunity cost of buying Part A from the supplier is

\$0

\$80,000

\$70,000

\$10,000

8. Prices are set by the competitive market when

a company can effectively differentiate its product from others

the product is specially made for a customer

there are no other producers capable of manufacturing a similar item

a product is not easily distinguished from competing products

9. Waco’s Widgets plans to sell 22,000 wi

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