The Weighted Average method is used for process costing at Elvis Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: What are the total equivalent units for conversion costs at Davide Corporation? 123,880117,790132,000122,200 Question 2 (1 point) Which of the following is unique to a process costing system? Each process has its own WIP account Work is not started on a product until an order is received Direct materials, direct labour and manufacturing overhead are assigned to the first department only Costs for each process stay with that process until the goods are moved to finished goods In a process system with multiple processes, the cost of units completed in department one is transferred to finished goods overhead WIP in department two cost of goods sold Question 4 (1 point) The costing system used by a company producing custom window treatments would be conversion cost costing equivalent units costing job costing process costing Question 5 (1 point) Which of the following condition(s) favours using departmental overhead rates in place of a plantwide overhead rate? Manufacturing overhead represents a small proportion of total cost Products spend the same amount of time in each department Different jobs or products use the departments to a different extent Departments use a similar amount of indirect costs The use of departmental overhead rates will generally result in the use of a single cost allocation base single overhead cost pool for the factory separate cost allocation base for each department in the factory separate cost allocation base for each activity in the factory Question 7 (1 point) In using an ABC system, which of the following steps is NOT performed before the company's year begins? Calculate an activity cost allocation rate for each activity Select an allocation base for each activity Identify the primary activities and estimate a total cost pool for each Allocate the costs to the cost object using the activity cost allocation rates Question 8 (1 point) The benefits of using the ABC costing system are higher if the company produces many different products that use differing amounts of resources has high indirect costs and produces many different products that use differing amounts of resources produces only one product has high indirect costs Outsourcing the accounting function is an example of what facet of activity-based management reduce costs of non-value-added activities improve selection of process activities to enhance profit achieve planned growth match the company's use of resources to customer demand Question 10 (1 point) Big-box retailers such as Best Buy are considered price-takers because their products are unique there is less competition in the consumer electronics retail sector their products are not unique. they emphasize cost-plus pricing Question 11 (1 point) When making a short-term special order decision, a company should focus on qualitative factors only focus on quantitative factors only use a traditional direct costing approach separate variable costs from fixed costs The minimum transfer price should be the available market price the full product cost the variable manufacturing cost the direct materials cost only Question 13 (1 point) A grocery store decides to drop its health and beauty section of products because it has been unprofitable. This strategy could backfire because the store can readily fill the available space it has automatically saved that department's fixed costs the store's sales may suffer by not having this convenience category of products variable costs are not avoidable Question 14 (1 point) Which of the following describes the target total cost? Revenue at market price minus desired profit Revenue at market price plus desired profit Total cost plus desired profit Total cost minus actual cost A standard cost can be thought of as the regular selling price for a single unit of product the budgeted selling price for a single unit of product the average cost for a single unit of product the budgeted cost for a single unit of product Question 16 (1 point) What does a favourable direct materials price variance indicate? The actual cost of materials purchased was greater than the standard cost of materials purchased The actual quantity of materials used was less than the standard quantity of materials used for actual The standard cost of materials purchased was greater than the actual cost of materials purchased The standard cost of materials purchased was less than the actual cost of materials purchased Question 17 (1 point) Yamane Industries has collected the following data for one of its products: How much is the direct materials efficiency variance at Grayson Industries? $12,000 favourable $10,000 unfavourable $10,000 favourable $12,000 unfavourable What could cause a production volume variance for fixed expenses? The number of units actually sold is different that the units upon which the static budget was based Insurance costs on the factory rise unexpectedly during the year due to a crisis in the insurance industry The lease on the manufacturing facility is renegotiated and the lease payments increase during the year The union calls for a strike of factory workers and temporary workers are hired to fill in for the striking employees Question 19 (1 point) Which of the following statements regarding static budgets is TRUE? They are designed to estimate revenues only Managers use them to help plan for uncertainties They are prepared for a range of activity levels They are prepared for one level of sales volume Question 20 (1 point) Assuming that all activity is within the relevant range, a decrease in the activity level in a flexible budget will decrease total fixed costs decrease the variable cost per unit decrease total costs increase the variable cost per unit Which term below best describes the quality cost category for "cost to re-inspect reworked food processors"? Appraisal costs External failure costs Internal failure costs Prevention costs Question 22 (1 point) Which of the following is an inventoriable cost? Direct labour expenses Research and development expenses Marketing expenses Distribution expenses Question 23 (1 point) Express Company reports the following data for its first year of operation. Cost of goods manufactured $475,000 Work in process inventory, beginning 0 Work in process inventory, ending 140,000 Direct materials used 110,000 Manufacturing overhead 185,000 Finished goods inventory, ending 101,000 What are the total manufacturing costs to account for at Express Company? $475,000$529,000$615,000$295,000 Farm Supply plans to make 10,000 tractors at its plant. Fixed costs are $1,000,000 and variable costs are $500 per tractor. What is the average cost per tractor? $500$100$1,500$600 Question 25 (1 point) A company produces toy airplanes. If 6,000 toys are produced at a total variable cost of $126,000, the total variable cost at 4,000 toys will be $86,000$84,000$210,000$126,000 Question 26 (1 point) Total fixed costs for Yellow Boats Inc. are $100,000. Total costs are $500,000 if 125,000 units are produced. The total variable costs at a level of 200,000 units would be $160,000.$800,000.$312,000.$640,000. Question 27 (1 point) Traceable fixed costs are allocated across all segments of a business. are directly related to a specific segment of a business. are also called common fixed costs. always account for all fixed costs. To compute the unit contribution margin, should be subtracted from the sales price per unit. only variable period costs all fixed costs only variable inventoriable product costs all variable costs Question 29 (1 point) What types of businesses can use a job costing system? Service, manufacturing, and merchandising businesses Service and merchandising businesses Manufacturing and merchandising businesses Service and manufacturing businesses Question 30 (1 point) The difference between the sales price and the job cost is gross profit cost of goods sold operating income net income