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NEW QUESTION 24
Which one of the following best describes the difference between a normal costing system and an actual costing system?

• A. Factory overhead cost is estimated using a predetermined rate under a normal costing system, while it is me actual value under an actual costing system.
• B. Direct material cost is estimated using a predetermined rate under a normal costing system while it is the actual value under an actual costing system
• C. Both direct labor cost and direct material cost are estimated using a predetermined rate under a normal costing system, while they are the actual value under an actual costing system
• D. Direct labor cost is estimated using a predetermined rate under a normal costing system, while it is the actual value under an actual costing system.

Answer: A

NEW QUESTION 25
What is ZF's expected variable overhead cost per pound of food produced? Snow your calculations Essay Zhiliang Foods Inc. (ZFI) is a privately-held food distributor ZFI has two production departments' the Meat Department is labor-intensive. while the Bakery Department is highly automated ZFI applies a single overhead allocation rate, using the number of pounds produced as an allocation base for the whole company The expected annual overhead costs of ZFI for 100 million pounds produced are as follows (¥ in millions).

ZFI has one payroll administrator in its Human Resources department, but most of the payroll related work is outsourced to a payroll service provider ZFI's payroll administrator is responsible for tracking the list of current employees and maintaining the most up-to-date employee information, including bank accounts for payroll direct deposits.
Each pay period, the payroll administrator emails the information for all current employees' hours worked to the payroll service provider. The service provider then processes the payroll, makes direct deposits to employees' bank accounts, mails payroll stubs to employees' homes and emails payroll reports to ZFI's payroll administrator. The payroll administrator then makes payroll journal entries to ZFI's accounting system based on the payroll reports received ZFI's accountant prepares a bank reconciliation each month to ensure ZFI s payroll payments on ZFI's bank statement match the amounts shown on the payroll reports from the service provider.
ZFl's management is evaluating the purchase of data encryption software and human resources management software next year. The human resource management software is expected to provide various human resources and payroll-related functions.
In addition, the human resource software can generate a report to indicate the monthly employee turnover rate and the average service length of employees who have resigned. The system can also generate a report to indicate the main reasons for resignations and identify current employees who are at risk of resigning. The system will recommend actions to help retain these employees, such as more training opportunities or a pay raise.

Answer:

Explanation:
See the Answer below in Explanation details.
Explanation
Factory Utilities 30m
Production Payroll 20m
Other Variable Cost 40m
Total Variable OHD 90m
Total Pounds Produced 100m
Hence vanable OHD per pound / 90m= 100m = 0.9

NEW QUESTION 26
Two examples or measures that could appear in the Learning and Growth section of a balanced scorecard are

• A. number of employee suggestions and finished products per day per employee
• B. employee turnover rate and employee training hours
• C. employee promotion rate and number of environmental incidents
• D. employee training hours and product defect rates

Answer: B

NEW QUESTION 27
Which one of the following represents a temporary difference under U.S GAAP?

• A. Percentage depletion of natural resources
• B. Accrued liabilities
• C. interest received in municipal bonds
• D. Fines and expenses resulting from violation of the law

Answer: B

NEW QUESTION 28
Music Masters Inc. has three departments: Instrument Sales, Music Instruction and Recording Studio The three segments are staffed by different customer service personnel but share space and administrative staff Condensed income statement information follows.

Management wants to eliminate the Recording Studio because of its losses. Because of the configuration of the building it is doubtful the space could be sublet and none of the common fixed costs would be eliminated However, additional space allocated to either Instrument Sales or Music Instruction might increase revenue from those sources In making this decision, all of the following outcomes are correct except.

• A. net income will increase if the Recording Studio is eliminated and instrument Sales increase $25,000
• B. elimination of the Recording Studio will decrease net income by $10,000
• C. elimination of the Recording Studio will increase net income by $10,000
• D. net income will remain the same if the Recording Studio is eliminated and Music Instruction revenue increases $20,000

Answer: B

NEW QUESTION 29
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