Accounting Problem Sets

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Name: _________________________________________ Instructions: The exam is composed of six problems worth a total of 100 Points Make sure you have all parts in your exam. Including this cover page, you should have ten pages. Each problem has its own set of instructions. Unclear responses will receive 0 points. Show all work for partial credit. You may abbreviate labels to save time. If you do not have enough space for your answer, use the back of the page to complete it. Provide a note or arrow indicating the presence of additional information. Remember to keep qualitative answers short and to the point! Problem 1 20 Points Continues onto next page The following cost data relate to the manufacturing…show more content…
Explain your answer. Product | | Direct Materials | Direct Labor | Overhead | Period | | | X | | He supports the manufacturing process but his time cannot be directly traced to each unit of finished product, therefore he would be classified as overhead. Problem 4 20 Points Continues onto next page Flint Engine Parts, Inc. (FEP) produces three products – pistons, valves, and cams – for the heavy equipment industry. FEP has a very simple production process and product line and uses a single plantwide factory overhead rate to allocate overhead to the three products. The factory overhead rate is based on direct labor hours. Information about the three products for 2013 is as follows: | Budgeted Volume (units) | Selling Price per Unit | Direct Materials per Unit | Direct Labor Hours per Unit | Pistons | 6,000 | $42.00 | $20.50 | 0.15 | Valves | 24,000 | 8.50 | 3.25 | 0.10 | Cams | 1,000 | 56.00 | 24.00 | 0.30 | The estimated direct labor wage rate is $25 per direct labor hour. The estimated factory overhead for 2013 is $108,000. 1. Calculate the Estimated Cost Driver for 2013. (3 Points) 3,600 hours 2. Calculate the Predetermined Overhead Rate for 2013. (3 Points) $30 / hour 3. Calculate the unit cost for one Piston and one Valve. Label each answer clearly. (6 Points) Piston: $28.75 Valve: $8.75 4. Calculate the amount of gross profit the company will make by
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