Standard costing And process costing
aircraft and automobiles. Manufacturing overhead at Azzurra is applied to
production on the basis of standard machine-hours. Which overhead variance(s)
at Azzurra would be affected in an unfavorable manner if fire and theft insurance
rates increase by 25% unexpectedly during the period?
a. variable overhead spending variance
b. variable overhead efficiency variance
c. fixed overhead budget variance
d. fixed overhead volume variance
2. The Assembly Department started the month with 83,000
units in its beginning work in process inventory. An additional 334,000 units
were transferred in from the prior department during the month to begin
processing in the Assembly Department. There were 34,000 units in the ending
work in process inventory of the Assembly Department. How many units were
transferred to the next processing department during the month?
a. 417,000
b. 285,000
c. 451,000
d. 383,000
3. Lawton Company produces canned tomato soup in a single
processing department and has a process costing system in which it uses the
weighted-average method. The company sold 250,000 units in the month of
January. Data concerning inventories follow in units: Inventory at January 1:
Work in process None; Finished goods 75,000; Inventory at January 31: Work in
process (conversion 75% complete) 16,000; Finished goods 60,000; What were the
equivalent units for conversion costs for January?
a. 235,000
b. 247,000
c. 251,000
d. 253,000
4. Kew Company uses the weighted-average method in its
process costing system. The company had 3,000 units in work in process at April
1 that were 60% complete with respect to conversion cost. During April, 10,000
units were completed. At April 30, 4,000 units remained in work in process and
they were 40% complete with respect to conversion cost. Direct materials are
added at the beginning of the process. How many units were started during
April?
a. 9,000
b. 9,800
c. 10,000
d. 11,000
5. The following data were taken from the accounting records
of the Mixing Department of Kappa Company which uses the weighted-average
method in its process costing system: Beginning work in process inventory: Cost
$19,000; Units 30,000 units; Percentage completion with respect to materials
100%; Percentage completion with respect to conversion 60%; Units completed and
transferred out 82,000 units; Cost per equivalent unit: Material $1.50;
Conversion $0.75; The cost of units transferred out was:
a. $184,500
b. $149,500
c. $167,500
d. $145,000
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