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ACCT 434 Week 4 Quiz (New)
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ACCT 434 Week 4 Quiz (New)

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1. Question : (TCO 3) Dougherty Company employs 20 individuals. Eight employees are paid $12 per hour and the rest are salaried employees paid $3,000 a month. How would total costs of personnel be classified? Question 2. Question : (TCO 3) For January, the cost components of a picture frame include $0.35 for the glass, $0.65 for the wooden frame, and $0.80 for assembly. The assembly desk and tools cost $400. A total of 1,000 frames is expected to be produced in the coming year. What cost function best represents these costs? Question 3. Question : (TCO 3) Which cost estimation method uses a formal mathematical method to develop cost functions based on past data? Question 4. Question : (TCO 3) Penny's TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 20X2 operations: Sales (2,000 televisions) $900,000; Cost of goods sold $400,000; Store manager's salary per year $70,000; Operating costs per year $157,000; Advertising and promotion per year $15,000; Commissions (4% of sales) $36,000. What are the estimated total costs if Penny's expects to sell Question 5. Question : (TCO 4) A decision model involves Question 6. Question : (TCO 4) When using the five-step decision process, which one of the following steps should be done last? Question 7. Question : (TCO 4) Sunk costs Question 8. Question : (TCO 4) Northwoods Incorporated manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $90 per table, consisting of 80% variable costs and 20% fixed costs. The company has surplus capacity available. It is Northwoods' policy to add a 50% markup to full costs. Northwoods is invited to bid on a one-time-only special order to supply 100 rustic tables. What is the lowest price Northwoods should bid on this special order? Question 9. Question : (TCO 5) Piels Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows. Direct materials $ 90,000 Direct labor 130,000 Variable factory overhead 60,000 Fixed factory overhead 140,000 Total costs $420,000 Of the fixed factory overhead costs, $60,000 is avoidable. Assuming no other use of their facilities, the highest price that Piels should be willing to pay for 10,000 units of the part is _____. If there are 600 machine-hours available per week, how many rockers of each model should Jim Helmer produce to maximize profits?

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