Acct 346 Essay

790 Words4 Pages
taxing authorities. internal users of accounting information. external users of accounting information. the Securities and Exchange Commission (SEC). 2. Question : (TCO 1) Which of the following costs does not change when the level of business activity changes? total fixed costs total variable costs total direct materials costs fixed costs per unit 3. Question : (TCO 1) You own a car and are trying to decide whether or not to trade it in and buy a new car. Which of the following costs is an opportunity cost in this situation? the trip to Cancun that you will not be able to take if you buy the car the cost of the car you are trading in the cost of your books for this term the cost of your car insurance last year 4. Question : (TCO 1) Shula’s 347 Grill has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,700; depreciation, $800; and other fixed costs, $600. Each steak dinner sells for $14.00 each. What is the budgeted fixed cost per unit? $1.06 $1.44 $4.49 $1.94 5. Question : (TCO 1) Which of the following costs is not part of manufacturing overhead? electricity for the factory depreciation of factory equipment salaries for the production supervisors health insurance for sales staff 6. Question : (TCO 1) Product costs are also called manufacturing costs. are considered an asset until the finished goods are sold. become an expense when the goods are sold. All of the above answers are correct. 7. Question : (TCO 1) Red Runner’s Work in Process Inventory account has a beginning balance of $50,000 and an ending balance of $40,000. Direct materials used are $70,000 and direct labor used totals $35,000. Cost of goods sold totals $135,000. Manufacturing overhead applied is $20,000. How much is cost of goods manufactured? $145,000

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