Acct 6273 Final Exam Acct6273 Final Exam

1075 words 5 pages
ACCT 6273 Final Exam ACCT6273 Final Exam
Click below link for Answers

ACCT 6273
Final Exam
100 points, total.
For partial credit, formulas and work, appropriately labeled, must be shown. There is no partial credit for multiple choice or true/false questions.

1. Lincoln Company manufactures and sells small electric heaters for homes and offices. The company’s income statement for the FY2014 is given below:

Total Per unit Sales (30,000 units) $1,800,000 $60 Less variable expenses 1,440,000 48 Contribution margin 360,000 $12 Less fixed expenses 264,000 Net income $
…show more content…

Compute the product cost per door (i.e., per unit) using the traditional allocation system based on direct labor dollars [8 points]

Hollow Core Solid Door

Product Cost per door ____________ ____________
3. Compute the product cost per door (per unit) using activity based costing for each product. [10 points]

Hollow Core Solid Door

Product Cost per door ____________ ____________ 4. How should Mr. Smythe explain the reasons for any differences observed in your analysis above? [4 points]

5. Barker Company produces a single product. The standard direct costs for the product are as follows: Direct materials (4 yds.@ $5/yd.) $20 Direct labor (1.5 hrs.@ $10/hr.) $15 During a recent period the company produced 1,200 units of product. Various costs associated with the production of these units are given below: Direct materials purchased (5,000 yds.) $24,500 Direct materials used in production 4,700 yds. Direct labor cost incurred