UTS 2010/2011
AKUNTANSI MANAGEMENT
BAGIAN: MULTIPLE CHOICE
1. The cost of lubricants used to grease a machine used in the production process of a
manufacturing company is an example of a ...
a. An indirect material cost
b. Period cost
c. Prime cost
d. Direct material cost
e. None of the above
2. The cost of direct materials is ...
a. Variable per unit (due to quantity discounts offered by vendors) and in total
b. Fixed per unit but variable in total
c. Variable per unit but fixed in total
d. Fixed per unit and in total
e. None of the above
3. Fixed cost expressed on a per unit basis ...
a. Should be ignored in making decisions since they cannot change
b. Will react directly with changes in activity
c. Will react inversely with changes in activity
d. Are not affected by activity
e. None of the above
4. Which of the following statements is true?
a. In the long run, the costs are variable
b. In the long run, all costs are fixed
c. Mixed costs are step costs
d. Variable costs vary with drivers that are correlated with the number of units produced
e. None of the above
5. Which of the following is an advantage of high-low method?
a. It is quick and easy to apply
b. It enables the analyst to determine wether or not the data are linear
c. It gives goodness of fit measures
d. It eliminates most of the data points
6. An accountant in a factory wants to determine the cost behavior of manufacturing
overhead. Which of the following is an application of managerial judgement in determining
cost behavior?
a. The accountant decides to use only 12 months of data since significant technological
changes make the most recent year different from the previous five years of operation
b. The accountant decides to try multiple regression since the coefficient of determination
on a simple regression equation is 0.49
c. The accountant runs a regression using direct labor hour as the independent variable.
However he/she adjust the X coefficient upward by 5% to reflect anticipated cost
incerases for the coming year
7.
8.
9.
10.
d. The accountant performs a scatterplot analysis and deletes several data points
determined to be outliers
e. All the above
Simple regression involves ...
a. Two or more independent variables to explain changes in one or more dependent
variables
b. Two or more independent variables to explain changes in a dependent variable
c. One independent variable to explain changes in a dependent variable
d. The visual fitting of a regression line to plotted data points observed levels of cost and
activity
e. None of the above
Factory overhead taken as a whole would be a perfect example of ...
a. Variable costs
b. Irrelevant costs
c. Mixed costs
d. Fixed costs
e. Nonen of the above
A major emphasis of process value analys is ...
a. The tracing of costs to activity centers
b. The selection of cost drivers
c. The identification of ways to either reduce or eliminate non-value-added activities
d. The calculation of unit costs products manufactured
e. None of the above
Overhead allocation based on volume alone ...
a. Will systematically overcost low-volume products and undercost high-volume products
b. Must used for external financial reporting since an activity-based costing system cannot
be designed to generate full product for external reporting purpose
c. Is a key aspect of the activity-based costing model
d. Will systematically overcost high-volumeproducts and undercost low-volume products
e. None of the above
The informations below is needed to answer 11-17 questions
Ga’Hoole Company has identified the following overhead acivities, costs, and activity drivers for the
coming year:
Activity
Setup
Inspecting
Grinding
Receiving
Expected Cost
$ 60,000
45,000
90,000
90,000
Activity Driver
Number of setups
Inspection hours
Machine hours
Number of parts
Activity Capacity
300
4,500
18,000
50,000
The company products several different machine subassemblies used by other manufacturers.
Information on separate batches for two of these subassemblies follows:
Subassembly A
Subassemby B
Direct material
Direct labor
Units completed
Number of setups
Inspection hours
Machine hours
Parts used
$850
600
100
1
4
20
20
$950
600
50
1
2
30
40
The company’s normal activity is 20,000 direct labor hours. Each batch uses 50 hours of direct labor.
Upon investigation, you discover that Receiving Department employs one worker who spends 75%
of his time on receiving activity and 25% of his time on inspecting products. His salary is $40,000.
Receiving also uses a forlift, at a cost of $ 60,000 per year for depreciation and fuel. The forklift is
used only in receiving.
11. The amount of cost assignied to the receiving activity is ...
a. $16,000
b. $36,000
c. $40,000
d. $46,000
e. None of the above
12. The activity rate of receiving is ...
a. $0.812 per part
b. $0.32 per part
c. $0.80 per part
d. $0.72 per part
e. None of the above
13. The activity rate for setting up equipment is ...
a. $20 per setup
b. $30,000 per setup
c. $200 per setup
d. $100 per setup
e. None of the above
14. The activity rate for grinding is ...
a. $5.00 per machine hour
b. $4,500 per machine hour
c. $18,000 per machine hour
d. $1.80 per machine hour
e. None of the above
15. The activity rate for inspecting is ...
a. $12 per inspection hour
b. $10 per inspection hour
c. $7,500 per inspection hour
d. $20 per inspection hour
e. None of the above
16. The nuit cost for subassembly A, using direct labor to assign overhead is ...
a. $14.50
b. $42.56
c. $20.28
d. $21.43
e. None of the above
17. The unit cost for subassemby A, using activity rates , is ...
a. $20.50
b. $30.28
c. $21.43
d. $18.04
e. None of the above
18. Which of the following statements is correct corcening activity-based management (ABM)?
a. ABM ecompasses process value analys only
b. ABM emphasizes process, financial, and non-financial measures
c. The ABM model has two domensions, cost and process
d. The ABM process is static in nature
e. None of the above
19. The functional-based responsibility accounting model is appropriate for which of the
folowing environments?
a. Relatively stable environments
b. Dynamic environments
c. Both stable and dynamic environments
d. Neither stable nor dynamic enironments
e. None of the above
Use the following answer question 20-21:
Information corcerning Johnston Co.’s direct materials costs was as follows:
Standard price per pound
$6.45
Actual quantity purchased
2,850 pounds
Actual quantity used in production
2,750 pounds
Units of products manufactured
700
Materials purchase price variance favorable
$855
Budget data for the period:
Units to manufacture
1000
Units of direct materials
4000 pounds
20. The actual purchase price per pound is:
a. $6.75
b. $6.12
c. $6.15
d. $6. 50
e. $7.13
21. The direct materials usage variance is:
a. $322.50 favorable
b. $307.50 unfavorable
c. $307.50 favorable
d. $322.50 unfavorable
e. $532.50 favorable
Use the following to answer question 22-26:
Lucky Company’s direct labor costs for the month of February was as follows:
Actual direct labor hours
61,500
Standard direct labor hours
63,000
Totalpayroll for direct labor
$774,900
Direct labor efficiency variance
$18,000
22. The actual direct labor rate is:
a. $13.20 per hour
b. $12.00 per hour
c. $12.30 per hour
d. $12.60 per hour
e. $13.50 per hour
23. The standard direct labor rate is:
a. $13.20
b. $13.50
c. $12.00
d. $12.30
e. $12.60
24. The total standard direct labor cost for the period is:
a. $765,000
b. $774,900
c. $738,000
d. $747,000
e. $756,000
25. The direct labor rate variance is:
a. $56,700 unfavorable
b. $73,800 unfavorable
c. $36,900 unfavorable
d. $37,800 unfavorable
e. $55,530 unfavorable
26. The direct labor flexible budget (total) variance is:
a. $44,500 unfavorable
b. $55,900 unfavorable
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28.
29.
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c. $18,900 unfavorable
d. $42,300 unfavorable
e. $46,350 unfavorable
Which one of the following is a drawback of decentralization?
a. Motivates managers
b. Offer an objective method of performance evaluation
c. Uses local knowledge
d. May hinder coordination among independent SBUs
e. Trains managers
Production or support SBUs within the firm that have the goal of providing the best quality
product or service at the lowest cost are:
a. Cost SBUs
b. Investment SBUs
c. Revenue SBUs
d. Contribution SBUs
e. Profit SBUs
SBUs that generate revenues and incur the major portion of the cost for producing those
revenues are:
a. Cost SBUs
b. Investment SBUs
c. Revenue SBUs
d. Contribution SBUs
e. Profit SBUs
SBUs that include the assets they employ as well as profits in the performance evaluation
are:
a. Cost SBUs
b. Investment SBUs
c. Revenue SBUs
d. Contribution SBUs
e. Profit SBUs
Use teh following to answer question 31-34:
Pane Inc. manufactures hair brushes that sale at wholesale for $2.60 per unit. Budgeted production
in both 200( and 2010 was 2,500 units. There was no beginning invetory in 2003. The following data
summarized the 2009 and 2010 operations:
2009
Units sold
2,500
Units produced
3,000
Costs:
Variable factory OH per unit
$0.65
Fixed factory
$1,290,000
Variable marketing
$0.80
Fixed administrative
$650.00
31. Absorption costing operating income for 2010 is calculated to be:
a. $935
2010
3,000
2,500
$0.65
$1,290,000
$0.80
$650.00
32.
33.
34.
35.
36.
37.
38.
b. $1,295
c. $1,510
d. $1,220
e. $1,150
Absorption costing operating income for 2010 is calculated to be:
a. $935
b. $1,295
c. $1,510
d. $1,220
e. $1,150
Variable costing operating income for 2009 is calculated to be:
a. $935
b. $1,295
c. $1,510
d. $1,220
e. $1,150
Variable costing operating income 2010 is calculated to be:
a. $935
b. $1,295
c. $1,510
d. $1,220
e. $1,150
Profit SBU income statements are most meaningful to maangers when they are prepared:
a. In a single-step format
b. In a multiple-step format
c. On an absorption costing basis
d. On a variable costing basis
e. On a cash basis
Inventory under the variable costing method includes:
a. Prime cost and all conversion cost
b. Direct material, direct labor, and all factory overhead cost
c. Direct material cost, direct labor cost, but no factory overhead cost
d. Direct material cost, direct labor cost, and variable factory overhead cost
e. Prime cost but not conversion cost
Which of the following is an argument against the use of variable cositng?
a. Fixed factory overhead is difficult to allocate properly
b. Fixed factory overhead is necessary for the production of a product
c. Full costing overstates the balance sheet value of inventories
d. Variable factory overhead is a period cost
e. None of the above
A company had income of $40,000 using variable costing for a given period. Beginning and
ending inventories for that period were 23,000 units and 28,000 units, respectively. Ignoring
income taxes, if the fixed overhead application rate were $4.00 per unit, what would the
income have been using full costing?
a. $60,000
39.
40.
41.
42.
43.
b. $112,000
c. $40,000
d. $50,000
e. Cannot be determined from the information given
Net income reported under full costingwill exceed net income reported under variable
costing for a given period if:
a. The variable overhead exceeds the fixed overhead
b. The variable overhead less than the fixed overhead
c. Production equals sales for that period
d. Production exceeds sales for that period
e. Sales exceed production for that period
A company’s net income recently increased by 30% while its inventory increased in a given
year. Which of the following accounting methods would be most likely to produce the
favorable income results?
a. Full costing
b. Direct costing
c. Variable costing
d. Standard direct costing
e. Value chain costing
During January, Lang Inc. produced 10,000 units of product with costs as follows:
Direct materials
$ 40,000
Direct labor
22,000
Variable overhead
13,000
Fixed overhead
90,000
$ 165,000
What is Lang’s unit cost for January, calculated on the variable costing basis?
a. $6.20
b. $7.20
c. $7.50
d. $8.50
e. $16.50
Determining the total standard fixed factory overhead for the units manufactured involves
all of the following essential elements except:
a. The normal level of operations as reflected by the quantity of the cost driver for applying
the fixed factory overhead, or the denominator activity for the period
b. The total budgeted fixed factory overhead for the operation
c. The total fixed factory overhead incurred
d. A cost driver or drivers for applying the fixed factory overhead
e. The standard fixed factory overhead application rate
The difference between the amount incurred and the bidgeted allowance for the fixed
factory overhead is the:
a. Fixed factory overhead rate variance
b. Fixed factory overhead usage variance
c. Fixed factory overhead efficiency variance
d. Fixed factory overhead production volume variance
e. Fixed factory overhead spending variance
44. Which of the following is interested in evaluating a firm’s performance?
a. Community groups
b. All of the above
c. Creditors
d. Employees
e. Owners
Use the following to answer questions 45-49:
The following information is available from Thinnews Co., a firm uses machine hours to apply factory
overhead:
Actual factory overhead
Actual fixed overhead expenses
Budgeted fixed overhead expenses
Actual machine hours
Standard machine hours for the units manufactured
Total budgeting machine hours
Variable overhead rate per machine hours
45. The total actual variable factory overhead cost is:
a. $14,400
b. $14,100
c. $13,000
d. $14,000
e. $15,000
46. The standard fixed overhead application rate is:
a. $4.00 per machine hour
b. $5.00 per machine hour
c. $2.00 per machine hour
d. $1.00 per machine hour
e. $3.00 per machine hour
47. The variable factory overhead spending variance is:
a. $1,500 F
b. $2,100 F
c. $600 U
d. $1,000 S
e. $1,400 U
48. The variable factory overhead efficiency variance is:
a. $1,500 F
b. $2,100 F
c. $600 U
d. $1,000 S
e. $1,400 U
49. The factory overhead production volume variance is:
$24,000.00
$10,000.00
$11,000.00
5,000.00
4,800.00
5,500.00
$3.00
a. $1,500 F
b. $2,100 F
c. $600 U
d. $1,000 S
e. $1,400 U
50. Under variable costing, fixed manufacturing overhead costs would be classified as:
a. Inventory costs
b. Sunk costs
c. Period costs
d. Product costs
e. Selling costs
BAGIAN 2: ESSAY – 1 SOAL
Tomarindo Company produces speakers Model A and Model B. Both products pass through two
producing departments. Model A’s production is much more labor-intensive than Model B’s. Model
B is also the more popular of the two speakers. The following data have been gathered for the two
products.
Product Data
Model A
Units produced per year
Prime costs
Direct labor hours
Machine hours
Production hours
Inspection hours
Maintenance hours
Model B
30.000
$ 200.000
140.000
20.000
40
800
10.000
300.000
$2.000.000
300.000
200.000
60
1.200
90.000
Overhead Costs
Setup costs
Inspection costs
Machining
Maintenance
total
$ 360.000
$ 280.000
$ 320.000
$ 360.000
$ 1.320.000
Required
1. Compute the overhead cost per unit for each product using a plantwide rate based on direct
labor hours
2. Compute the overhead cost per unit for each product using activity-based costing
3. Suppose that Tomariondo decides to use departmental overhead rates. There are two
departments: Department 1 (machine intensive) with a rate of $4.66 per machine hour, and
Department 2 (labor intensive) with a rate of $1.20 per direct labor hour. The consumption
of theese two drivers is given below:
Department 1
Model A
Model B
Department 2
10.000
170.000
130.000
270.000
Compute the overhead cost per unit for each product using departmental rates.
4. Using the activity-based product costs as standard, comment on the ability of departmental
rates to improve the accurancy of product costing. (Did the departmental rates do better
than plantwide rates?)