Exam 3: Basic Cost Management Concepts

Certain workers are assigned the task of unpacking production materials received from suppliers. These workers place the material in a storage area pending subsequent use in the production process. The labor cost of such workers is normally classified as:

The range of the cost driver in which the actual value of the cost driver is expected to fall is called the:

All indirect manufacturing costs are commonly combined into a single cost pool called:

What should be the amount of direct materials used?

Structural cost drivers are to executional cost drivers as:

Williams Company is an East Coast producer of electronic furnace air filters. A significant jump in new housing starts in the region has triggered a 25 percent increase in orders for the filter units, especially the quality model that Williams sells for $270. Six weeks after increasing production to supply the increased orders, the assistant controller notices some unusual unit cost data in the monthly report she is preparing. Prior and current month unit values are given below: Required: (1) Suggest some possible causes for the decline in average total cost. (2) Assume now the opposite change has occurred, namely, average total cost has risen $3.96 per unit, while unit variable cost has fallen by $3.68 per unit. Suggest a possible situation to explain these changes.

Cost of goods manufactured is calculated to be:

The following information applies to the McAdoo Company for the year. Required: Prepare a statement of cost of goods manufactured and an income statement for the year.

A manager of a large retail firm is interested in knowing what the company's product costs are. Which of the following would be considered a product cost for the manager's company?

A computer virus destroyed some of the accounting records for Hampton Furniture Company for the periods of 2011-2013. The following information was salvaged from the computer system. Required: Determine the correct amounts for A through P.

Factory overhead costs for a given period were 3 times as much as the direct material costs. Prime costs totaled $2,000. Conversion costs totaled $3,280. What are the direct labor costs for the period?

What is the amount of direct materials purchased?

How will unit (average) cost of manufacturing (materials, labor and overhead) usually change if the production level rises?

Roadmaster Equipment is an up-scale, higher-priced, specialty road construction equipment maker based in Irvine, California. The management accountant for Roadmaster compiled information for various levels of output in units: Required: Rounding all calculations to the nearest dollar, fill in the blanks with the correct figures.

What should be the amount of direct materials purchased?

The total manufacturing cost consists of the costs for materials used, labor, and ________.

What is the amount of total manufacturing cost?

For the month of April, conversion cost incurred was:

In order to assure that accounting information is accurate and to avoid potentially costly mistakes in the decision making process, firms should:

What should be the amount of total manufacturing cost?