Font size
WorksheetsJali-jali Cup MAS Quiz Bee (AVERAGE)
Total questions: 10
Worksheet time: 8mins
In the preparation of the schedule of Cost of Goods Manufactured, the accountant incorrectly included as part of manufacturing overhead the rental expense on the firm's retail facilities. This inclusion would:
Understate the cost of goods manufactured
Have no effect on the cost of goods manufactured
Overstate period expenses on the income statement
Overstate the cost of goods sold on the income statement.
Fundamental steps in decision-making process are given below:
i. Evaluate alternative
ii. Identify constraints
iii. Set objectives
iv. Gather appropriate information
v. Choose the most acceptable alternative
vi. Identify alternatives.
The most desirable sequence is:
iv, Ii, iii, vi, i, v
ii, iii, iv, vi, i, v
iii, ii, iv, vi, i, v
ii, iii, vi, iv, i, v
Milby Company manufactures a single product. In the prior year, the company had sales of P90,000, variable costs of P50,000, and fixed costs of P30,000. Sam expects its cost structure and sales price per unit to remain the same in the current year, however total sales are expected to increase by 20 percent. If the current year projections are realized, net income should exceed the prior year’s net income by (a) %.
A CPA should reject management advisory services engagement if:
The proposed engagement is not accounting related
His recommendations are to be subjected to a review by the client
He audits the financial statements of a subsidiary of the prospective client
It would require him to make management decisions for an audit client
The materials mix variance for a product is P450 unfavorable and the materials yield variance is P150 unfavorable. This means that.
The materials price variance is P600 unfavorable
The materials quantity variance is P600 unfavorable
The total materials cost variance is definitely P600 unfavorable
The materials price variance is also unfavorable, but the amount cannot be determined from the given information
This is used to describe the assignment of direct costs to a particular cost object.
(a)
Dividing the estimated total annual manufacturing overhead costs by the estimated total cost generates the predetermined manufacturing overhead rate.
TRUE
FALSE
How will a favorable volume variance affect net income under Absorption costing method and Variable costing method, respectively?
reduce; no effect
reduce; increase
increase; no effect
increase; reduce
After careful planning, JCO Style, Inc. has decided to switch to a just-in-time inventory system effective on July 1 of the current year. As of July 1, the corporation has 70 units of product in inventory. It has 1,000 labor hours available for the month of July. These hours could produce 250 units of product. Customer demand for July is 200 units. If just-in-time principles are correctly followed, how many units should Change Style Inc. plan to produce in July?
(a)
The standard direct materials cost to produce a unit of a product is 4 meters of materials at P2.50 per meter. During June 2021, 4,200 meters of materials costing P10,080 were purchased and used to produce 1,000 units of the product. What was the materials price variance for June 2021?
(Indicate favorable or unfavorable after the amount example: 100 unfavorable )
(a)
