# Week 2 Quiz

. (TCO 2) Bubba’s Crawfish Processing Company uses a traditional overhead allocation based on direct labor hours. For the current year overhead is estimated at \$2,250,000 and direct labor hours are budgeted at 415,000 hours. Actual overhead was \$2,200,000 and actual direct labor hours worked were 422,000. (a) Calculate the predetermined overhead rate. Rate, based on budgeted factory overhead cost and budgeted activity, that is established before a period begins. 2,250,000/415,000

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During the period the department received another 180,000 units from the prior department and at the end of the period 112,000 units remained which were 17%complete. How much are equivalent units in The Marinade Department’s work in process inventory at the end of the period? (TCO 3) The Franc Zeppo Venture manufactures a product that goes through two processing departments. Information relating to the activity in the first department during April is given below: Work in process, April 1: 50,000 units (80% completed for materials and 60%completed for conversion. Work in process, April 30: 45,000 units (70% completed for materials and 60%completed for conversion. 4. The department started 380,000 units into production during the month and transferred 385,000 completed units to the next department.

Compute and calculate the equivalent units of production for the first department for April, assuming the company uses the weighted-average method of accounting for units and costs. 1. Question : (TCO D) A company that has a profit can increase its return on investment by Student Answer: increasing sales revenue and operating expenses by the same dollar amount. increasing average operating assets and operating expenses by the same dollar amount. increasing sales revenue and operating expenses by the same percentage. decreasing average operating assets and sales by the same percentage. Instructor Explanation: Chapter 12 2. Question : (TCO D) Given the following data, what would ROI be?

Sales \$50,000 Net operating income \$5,000 Contribution margin \$20,000 Average operating assets \$25,000 Stockholder’s equity \$15,000 Student Answer: 10% 20% 16. 7% 80% Instructor Explanation: See Chapter 12. ROI = Net operating income / Average operating assets = \$5,000 / \$25,000 = 20. 0% 3. Question : (TCO D) Given the following data: What is the return on the investment (ROI)? Sales \$50. 000 Net operating income \$5,000 Contribution margin \$20,000 Average operating assets \$25,000 Stockholder’s equity \$15,000 Student Answer: 10% 20% 16. 7% 80% Instructor Explanation: ROI = Net operating income / Average operating assets = \$5,000 / \$25,000 = 20. 0%

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