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ACC 256 Final  Malt Company's Manufacturing overhead account showed a $12,000 underapplied overhead balance on December 31

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ACC 256 Final 

1. Malt Company's Manufacturing overhead account showed a $12,000 underapplied overhead balance on December 31. Other accounts showed the following amounts of overhead applied from the current period in their ending balances:
2. 
   
   Work in process $ 33,000
   Finished goods 33,000
   Cost of goods sold 154,000
   
   If the company allocates the underapplied overhead among Cost of goods sold, Work in process, and Finished goods, the amount allocated to Work in process was...
3. Traditionally, the predetermined overhead rate is based on the estimated total amount of the allocation base for the next year. If demand falls due to a recession or other reason, the estimated total amount of the allocation base...
4. A long-established practice in industry is to determine the predetermined overhead rate as follows:
   
   a) estimated total manufacturing overhead cost at capacity divided by estimated or budgeted activity.
   
   b) estimated total manufacturing overhead cost at capacity divided by estimated or budgeted activity at capacity.
   
   c) estimated total manufacturing overhead cost divided by estimated or budgeted activity at capacity.
   
   d) estimated total manufacturing overhead cost divided by estimated or budgeted activity.
5. All of the following statements regarding idle time are correct except:
   
   a) Idle time refers to the costs of direct labor workers who are unable to perform their assignments due to material shortages.
   
   b) Idle time is treated as part of direct labor cost.
   
   c) Idle time refers to the costs of direct labor workers who are unable to perform their assignments due to power failures.
   
   d) Idle time is treated as part of manufacturing overhead.
6. A machinist earns $18 per hour. During a given week he works 27 hours, of which he is idle 7 hours. For the week:
   $549 cost should be charged to direct labor and $63 cost should be charged to overhead.
   $126 cost should be charged to overhead
   $486 cost should be charged to direct labor.
   $126 cost should be charged to overtime premium.
7. Lester Company has a single product. The selling price is $55 and the variable cost is $33 per unit. The company's fixed expense is $220,000 per month. What is the company's unit contribution margin?
8. Tarrington Company manufactured and sold 1,200 units of its product during the current month. The selling price is $60 and the variable cost is $41 per unit. The company's fixed expense is $15,000 per month. If the company sells one additional unit during the month, its total contribution margin will increase by...
9. All of the following statements are correct except:
   
   a) Within the relevant range, a change in activity results in a change in the per unit fixed cost.
   
   b) Within the relevant range, a change in activity results in a change in the per unit variable cost.
   
   c) A variable cost changes in total as activity changes but remains constant on a per unit basis over the relevant range.
   
   d) A cost that is classified as variable with respect to one measure of activity could be classified as fixed with respect to a different measure of activity.
10. Douglas Company sold 1,500 units of its product during the current month. The selling price is $60 and the variable cost is $46 per unit. The company's fixed expense totals $8,000 per month. The company's profit is...
11. Lester Company has a single product. The selling price is $50 and the variable cost is $40 per unit. The company's fixed expense is $120,000 per month. What is the company's contribution margin ratio?