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Total 50 questions

Managerial Accounting (SAYA-0009) Exam Questions and Answers

Question 13

What is the balance in the manufacturing overhead account after these transactions were recorded, assuming the beginning balance was zero?

Now calculate the balance:

Manufacturing Overhead Balance = Actual Overhead – Applied Overhead

= $6,700 – $6,000 = $700 underapplied

Underapplied overhead → debit balance in Manufacturing Overhead account

Options:

A.

Factory utility costs: $4,200

B.

Factory maintenance: $2,500→ Actual overhead costs = $4,200 + $2,500 = $6,700

C.

Factory overhead applied:→ Direct labor hours = 240 hours→ Overhead rate = $25 per direct labor hour→ Applied Overhead = 240 × $25 = $6,000

Question 14

Strang Tax provides tax consulting services to its clients whom they charge on an hourly basis. They would like to use differential analysis to determine whether profits would change if they dropped certain clients. Which of the following items should be excluded from this analysis?

Options:

A.

Rent expenses

B.

Consulting fees

C.

Wages payable

D.

Project management costs

Question 15

Wycliff Corporation manufactured Job #3 during the month of May. On May 29, 100% of the product was finished and sold on account for $150. These journal entries were recorded during production:

On May 31, Wycliff determined that the amount remaining in the manufacturing overhead account was immaterial and closed it out. What was the amount of gross profit before closing the manufacturing account, and what effect did closing the manufacturing account have on gross profit?

Options:

A.

Gross profit was $44; gross profit decreased by $1.00 after closing manufacturing overhead.

B.

Gross profit was $44; gross profit increased by $1.00 after closing manufacturing overhead.

C.

Gross profit was $75; gross profit decreased by $1.00 after closing manufacturing overhead.

D.

Gross profit was $75; gross profit increased by $1.00 after closing manufacturing overhead.

Page: 4 / 4
Total 50 questions