Ask Question, Ask an Expert


Ask Accounting Basics Expert

1. For the automobile manufacturer, cost of a driver's side air bag purchased from the supplier and installed in every automobile would best be describeed as the:

a. fixed cost.
b. mixed cost.
c. step-variable cost.
d. variable cost.

2. XYZ Wool Company manufactures and sells sweaters. Last year, it operated at 100% of capacity and had cost formula for total manufacturing costs which is given below:

Y = $50,000 + $400X

Suppose no change in cost structure, what would cost formula of XYZ have been last year if they only operated at 90% of production capacity?

a. Y = $45,000 + $360X
b. Y = $45,000 + $400X
c. Y = $50,000 + $360X
d. Y = $50,000 + $400X

3. The management of ABC Corporation would like for you to analyze their repair costs, which are given below:

              Machine-Hours         Repair-Hours
April            4,459                      $98,523
May            4,426                      $98,296
June           4,493                       $98,781
July            4,417                       $98,207
August       4,432                       $98,349
September 4,446                       $98,420
October      4,489                      $98,749
November  4,475                      $98,654

Management believes that repair cost is the mixed cost which depends on number of machine-hours. Using the least-squares regression method, the estimates of variable and fixed components of repair cost would be closest to:

a. $22.11 per machine-hour plus $98,497 per month
b. $7.37 per machine-hour plus $65,670 per month
c. $8.19 per machine-hour plus $62,015 per month
d. $7.55 per machine-hour plus $64,859 per month

4. During a latest lengthy strike at ABC Manufacturing Company, management replaced striking assembly line workers with office workers. Assembly line workers were being paid $18 per hour while office workers are only paid $10 per hour. What is the most likely effect on labor variances in first month of this strike?

       Labor Rate Variance      Labor Efficiency Variance
A)       Unfavorable                           No effect
B)          No effect                           Unfavorable
C)        Unfavorable                             Favorable
D)         Favorable                            Unfavorable

a. Item A
b. Item B
c. Item C
d. Item D

5.  The journal entry given below:

Work in Process                               25,000
Direct Labor Efficiency Variance      1,200
Direct Labor Rate Variance               2,000
Accrued Wages Payable                   24,200

indicates that:

A. total labor variance was $800, unfavorable.
B. employees received the unexpected rate increase during the period.
C. more labor time was needed to complete output of period than was allowed at standard.
D. responses a and b are both correct.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M99284

Have any Question? 

Related Questions in Accounting Basics

Problem - cwt lawyers pty ltd started to operate in 2015 in

Problem - CWT Lawyers Pty Ltd started to operate in 2015 in Melbourne. CWT advises clients on legal issues relating to commercial contracts, ASIC compliance, Trade Practices and Corporations Act requirements, business st ...

Final project budget variance reportintroduction-in your

Final Project Budget Variance Report Introduction- In your opening paragraph, very briefly introduce the purpose of your paper. Recall that you will be discussing the operating budget and variance analysis as explained i ...

Contemporary issues in accounting-topic - critical

Contemporary issues in accounting- Topic - Critical Accounting Theory Objective- Makes a clear distinction between different theories of accounting Critically evaluate contemporary external company reporting practices Le ...

Accounting questionsinternational accounting focuses on

Accounting Questions: International Accounting focuses on foreign currency and hedging. Why might a company prefer a foreign currency option rather than a forward contract in hedging a foreign currency firm commitment? W ...

Accounting theory and current issuesbio-sustainable feeds

Accounting Theory and current issues Bio-sustainable Feeds (BSF) Ltd., an Australian bio-research firm listed on the Australian Stock Exchange (ASX), has engaged research on sustainable aqua-culture feeds for two decades ...

Are you agree or disagree regarding the paragraph on

Are you agree or disagree regarding the paragraph on payroll which is a part of auditing-Monetary compensation is a leading cause for the common practice of verifying total officers' compensation even when the tests of c ...

We assumed that the sample building was not occupied it

We assumed that the sample building was not occupied. It consisted purely of capital amounts. But in the real world, part of the return earned by a building owner is rent. Now assume that rent of $11,000 is paid strictly ...

A strong 1 page paper with references forbased on the

A strong 1 page paper with references for Based on the scenario presented in the Learning Team Instructions, write a 1-page report on your IT Audit and Control Analysis Plan. Draft answers to the following: • Why conduct ...

Compare all three balance sheets on the basic grounds of

Compare all three balance sheets on the basic grounds of accounts and differences. 1. HDFC 2. Infosys and 3. Tata Steel. Balance sheets -

In the citation schusters express inc 66 tc 588 1976 affd

In the citation Schuster's Express, Inc., 66 T.C. 588 (1976), aff'd 562 F.2d 39 (CA-2, 1977), nonacq., to what do the 66, 39, and nonacq. refer? • Is there an automatic right to appeal to the U.S. Supreme Court? If so, w ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate