Homework answers / question archive / University Of Arizona ATMO 005 Quiz 15 1)Hicks Furniture Company sells a variety of handmade, painted desks

University Of Arizona ATMO 005 Quiz 15 1)Hicks Furniture Company sells a variety of handmade, painted desks

Accounting

Share With

---

University Of Arizona

ATMO 005

Quiz 15

1)Hicks Furniture Company sells a variety of handmade, painted desks. In a recent budget performance report, there was a variance related to paint. All of the following may help explain that variance except:

Paint was purchased from a different supplier than the one normally used.

 Several gallons of paint were stolen from the supply room.

Several gallons of paint were accidentally left open and became unusable.

Employees applied more coats of paint than necessary.

All of the above could help explain the variance

 

2. Which of the following would be used to record research and development (R&D) costs in the accounting framework?

(Cash), (R&D Expense)

(Cash), R&D

Cash, Revenue Cash, Inventory

 

Use the following information for the next two questions.

The Rateliff Company developed the following standards for the manufacture of its product:

?

?             Each       unit should have 2 ½ pounds of direct materials purchased at $4 per        pound.

?

?             Each       unit should be produced in 1½ hours at a direct labor cost of $16               per hour.

 

3. Actual production was 6,000 units using 12,400 pounds of direct materials at a total cost of

$60,800 and required 8,200 direct labor hours at a total cost of $110,400. What is the “cost” variance for direct materials? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance.

 

4. What is the “quantity” variance for direct labor? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance.

 

5. For your virtual business in Marketplace (for the class team), your company initially built a factory that cost $600,000 then added more space costing another $600,000. What is the total amount of accumulated depreciation on your factory (i.e. fixed assets) through Q4?

 

6. Which of the following would not be considered a current asset?

 Inventory

Cash

Equipment

Accounts Receivable

Prepaid Expenses

 

7. In a balanced scorecard which of the following would most likely be a component in the internal process perspective?

Customer ratings

Net income

Training hours

On time deliveries

 

8. Which of the following would a profit center manager not be able to control?

 Expenses

 

Revenues

Investment of assets

A profit center manager can manage

all of the above

 

9. Which of the following is likely the most difficult to budget accurately?

Rent

Payroll

Sales

Utilities

 

10. For your virtual business in Marketplace (for the class team), using a horizontal analysis, what was your company’s relative change in revenues to Q4? You should round your calculation to the nearest 1/10th of a percent and then enter without the percent sign (e.g. 20.6% would be entered as 20.6).