BA 116 WFRU

Mechanics - Grouping Form SIX groups with 8-9 people per group Each group must have an answer sheet and scratch paper for the problems

Mechanics - Questions Each question will have a designated time limit Questions will vary from theory/concepts to problem solving Questions will be designated as EASY, MODERATE or DIFFICULT EASY questions will be worth 5 points MODERATE questions will be worth 10 points DIFFICULT questions will be worth 20 points

Mechanics - Answering For each question, each group will be represented by a pair, chosen at random Final answers must be written on the answer sheet within the designated time limit If a group decides to use a lifeline for a specific question, then it must also write down the lifeline it wants to use

Mechanics - Lifelines Each group has FOUR available lifelines: CALL, COPY, SWITCH, and TIME CALL enables the group to use the answer of an “inactive” groupmate as the group’s final answer for the particular question COPY enables the group to copy the answer of another group for the particular question SWITCH enables the group to switch answers with another group for the particular question TIME grants the group more time to answer the particular question

Mechanics - Rewards First place: +150/150 to quizzes Second place: +120/120 Third place: +90/90 Fourth place: +70/70 Fifth place: +50/50 Sixth place: +25/25

Question 1: EASY, 1.5 mins

Question 2: DIFFICULT, 2 mins

Question 3: MODERATE, 1 min

Question 4: EASY, 0.5 min

Question 5: DIFFICULT, 2 mins

Question A: DIFFICULT, 2.5 mins Sit-On-It manufactures vehicular seat covers using a just-in-time production system supported by a backflush costing system. Materials are only purchased when they are ready to be placed in production. Unit costs are Php40 for raw material A (added at the start of the process), Php25 for raw material B (added 75% into the process) and Php45 for conversion costs (incurred continuously throughout the process). Applied conversion costs are charged directly to cost of goods sold. Conversion costs amounted to Php1,008,000 and units in process were 70% complete. Out of 21,000 units completed, only 20,000 units were sold. How much raw material A was purchased during the period?

Question 6: EASY, 1 min

Question 7: MODERATE, 2 mins

Question 8: DIFFICULT, 2.5 mins

Question 9: DIFFICULT, 2.5 mins

Question 10: EASY, 0.5 min

Question B: DIFFICULT, 2.5 mins Sit-On-It manufactures vehicular seat covers using a just-in-time production system supported by a backflush costing system. Materials are only purchased when they are ready to be placed in production. Unit costs are Php40 for raw material A (added at the start of the process), Php25 for raw material B (added 75% into the process) and Php45 for conversion costs (incurred continuously throughout the process). Applied conversion costs are charged directly to cost of goods sold. Conversion costs amounted to Php1,008,000 and units in process were 70% complete. Out of 21,000 units completed, only 20,000 units were sold. How much raw material B was purchased during the period?

Question 11: EASY, 0.5 min

Question 12: MODERATE, 1.5 mins The controller for Durham Skates is reviewing the production cost report for July. An analysis of direct materials costs reflects an unfavorable flexible budget variance of $25. The plant manager believes this is excellent performance on a flexible budget for 5,000 units of direct materials. However, the production supervisor is not pleased with this result because he claims to have saved $1,200 in materials cost on actual production using 4,900 units of direct materials. The standard materials cost is $12 per unit. Actual materials used for the month amounted to $60,025. The actual average cost per unit for materials was

Question 13: DIFFICULT, 2.5 mins A company producing a single product employs the following direct material cost standard for each unit of output: 3 pounds of material x $4/pound = $12/output unit Data regarding the operations for the current month are as follows: Planned production 26,000 units Actual production 23,000 units Actual purchases of direct materials (75,000 pounds) $297,000 Direct materials used in Production 70,000 pounds What would be the amount of the direct materials purchase price variance and direct materials quantity variance that the company would recognize for the month?

Question 14: MODERATE, 1 min The best basis upon which cost standards should be set to measure controllable production inefficiencies is A. Recent average historical performance. B. Engineering standards based on ideal performance. C. Normal capacity. D. Engineering standards based on attainable performance.

Question 15: MODERATE, 1 min Which of the following is least likely to cause an unfavorable materials quantity (usage) variance? A. Labor that possesses skills equal to those required by the standards. B. Machinery that has not been maintained properly. C. Materials that do not meet specifications. D. Scheduling of substantial overtime.

Question C: DIFFICULT, 3 mins Sit-On-It manufactures vehicular seat covers using a just-in-time production system supported by a backflush costing system. Materials are only purchased when they are ready to be placed in production. Unit costs are Php40 for raw material A (added at the start of the process), Php25 for raw material B (added 75% into the process) and Php45 for conversion costs (incurred continuously throughout the process). Applied conversion costs are charged directly to cost of goods sold. Conversion costs amounted to Php1,008,000 and units in process were 70% complete. Out of 21,000 units completed, only 20,000 units were sold. What are the target ending balances of RIP, FG, and CGS?

Question 16: DIFFICULT, 2 mins A company manufactures one product and has a standard cost system. In April the company had the following experience: Direct Materials Direct Labor Actual $/unit of input (lbs. & hrs.) $28 $18 Standard price/unit of input $24 $20 Standard inputs allowed per unit of output 10 4 Actual units of input 190,000 78,000 Actual units of output 20,000 20,000 The direct materials efficiency and direct labor rate variances for April is

Question 17: MODERATE, 1 min Which of the following factors should not be considered when deciding whether to investigate a variance? A. Whether the variance is favorable or unfavorable. B. Magnitude of the variance. C. Likelihood that an investigation will eliminate future occurrences of the variance. D. Trend of the variances over time.

Question 18: EASY, 0.5 mins A favorable material price variance coupled with an unfavorable material usage variance would most likely result from A. The purchase and use of lower than standard quality material. B. The purchase and use of higher than standard quality material. C. Labor efficiency problems. D. Labor mix problems.

Question D: DIFFICULT, 3 mins Sit-On-It manufactures vehicular seat covers using a just-in-time production system supported by a backflush costing system. Materials are only purchased when they are ready to be placed in production. Unit costs are Php40 for raw material A (added at the start of the process), Php25 for raw material B (added 75% into the process) and Php45 for conversion costs (incurred continuously throughout the process). Applied conversion costs are charged directly to cost of goods sold. Conversion costs amounted to Php1,008,000 and units in process were 70% complete. Out of 21,000 units completed, only 20,000 units were sold. What is the end-of-period adjustment entry assuming trigger points of purchase and sale?

Question 19: DIFFICULT, 2.5 mins Tiny Tykes Corporation had the following activity relating to its fixed and variable overhead for the month of July. Actual costs Fixed overhead $120,000 Variable overhead 80,000 Flexible budget Variable overhead 90,000 Standard Fixed overhead 125,000 Variable overhead spending variance 2,000F Production volume variance 5,000U If the budgeted rate for applying variable manufacturing overhead was $20 per direct labor hour, by how many DL hours was Tiny Tykes more/less efficient than the standard?

Question 20: DIFFICULT, 3 mins Franklin Glass Works' production budget for the year ended November 30 was based on 200,000 units. Each unit requires two standard hours of labor for completion. Total overhead was budgeted at $900,000 for the year, and the fixed overhead rate was estimated to be $3.00 per unit. Both fixed and variable overhead are assigned to the product on the basis of direct labor hours. The actual data for the year ended November 30 are presented as follows. Actual production in units 198,000 Actual direct labor hours 440,000 Actual variable overhead $352,000 Actual fixed overhead $575,000 Franklin's variable overhead spending variance for the year is

Question E: DIFFICULT, 3 mins Sit-On-It manufactures vehicular seat covers using a just-in-time production system supported by a backflush costing system. Materials are only purchased when they are ready to be placed in production. Unit costs are Php40 for raw material A (added at the start of the process), Php25 for raw material B (added 75% into the process) and Php45 for conversion costs (incurred continuously throughout the process). Applied conversion costs are charged directly to cost of goods sold. Conversion costs amounted to Php1,008,000 and units in process were 70% complete. Out of 21,000 units completed, only 20,000 units were sold. What is the end-of-period adjustment entry assuming one trigger point (sale)?