11. Overhead and Labor Are Often Grouped Together and Called Conversion Costs. (Points

11. Overhead and Labor Are Often Grouped Together and Called Conversion Costs. (Points

. The goal of managerial accounting is to provide information for planning, controlling and decision making. (Points: 5) True False 2. The last step in the planning and control process is to (Points: 5) implement the plan. construct the plan. make decisions based on the evaluation of the results. compare actual results to the planned results. 3. Marco Diner produced and sold 2,000 bagels last month and had fixed costs of $6,000. If production and sales are expected to increase by 10% next month, which of the following statements is true? (Points: 5) Total fixed costs will increase. Total fixed costs will decrease. Fixed cost per unit will increase. Fixed cost per unit will decrease. 4. In most companies, the top management accountant is called the (Points: 5) financial analyst. taxation specialist. treasurer. controller. 5. Mattress Firm produces pillow-top mattresses. Each mattress has a variable cost of $140 and fixed costs are $41,000 per month. Each sells for $360. If the company produces and sells 420 mattresses in February, how much profit will the company expect for March? (Points: 5) $99,800 $151,200 $51,400 $92,400 6. Why is overhead applied using a predetermined overhead rate? (Points: 5) The actual amount of overhead is not known until yearend and the company desires timely cost information. The company desires to know the actual job costs during the year. A company is unable to estimate its expected costs for the year. Overhead amounts cannot be accurately determined since they include both fixed and variable components. 7. Deere Farm Products applies overhead using a predetermined overhead rate. Overhead is applied based on direct labor hours. At the beginning of the year it is estimated that $500,000 in overhead will be incurred and 25,000 hours will be worked. At year end, 24,000 hours were actually worked, and actual overhead costs were $470,000. What can be concluded from this? (Points: 5) Cost control was good. Overhead is overapplied by $10,000 Overhead is underapplied by $10,000 Overhead is applied at a rate of $19.58 per hour 8. The goal of minimizing raw materials and work in process inventories is most closely associated with (Points: 5) ABC. JIT. TQM. computer-controlled manufacturing systems. 9. Total quality management (TQM) programs are also known as (Points: 5) just-in-time programs. activity-based allocation programs. critical path programs. continuous quality improvement programs. 10. Border Designs manufactures custom tiles and applies job-order costing. The following information relates to the fiscal year ending December 31, 2011. How much is the cost of direct materials transferred into production? (Points: 5) $187,200 $189,000 $190,800 $201,500 data is not given

11. Overhead and labor are often grouped together and called conversion costs. (Points: 5) True False 12. Which of the following describes the differences between job-order and process costing? (Points: 5) Job-order costing is used in financial accounting while process costing is used in managerial accounting. Job-order costing can only be used by manufacturers; service enterprises must use process costing. Job-order costing is voluntary while process costing is mandatory. Job-order costing traces costs to jobs while process costing traces costs to departments and averages the costs among the units worked on during the period. 13. In a process costing system, when raw materials are put into process, the cost of the items is moved from: (Points: 5) Work in Process to Finished Goods. Finished Goods to Cost of Goods Sold. Raw Materials to Work in Process. Finished Goods to Work in Process.