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Acct 434 Week 4 Midterm Exam

This document of ACCT 434 Week 4 Midterm Exam shows the solutions to the following problems:

1. ABC systems create2. Merriamn Company provides the following ABC costing information: 3. A master budget4. Dalyrymple Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $80,000. The budgeted number of nozzles to be inserted is 40,000. What is the budgeted indirect cost allocation rate for this activity?5. Which cost estimation method analyzes accounts in the subsidiary ledger as variable, fixed, or mixed using qualitative methods?6. In evaluating different alternatives, it is useful to concentrate on7. The theory of constraints is used for cost analysis when8. Schmidt Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows: 9. The cost function y = 100 + 10X10. Sunk costs

1. For each of the following drivers identify an appropriate activity. 2. Favata Company has the following information3. Patrick Ross, the president of Ross’s Wild Game Company, has asked for information about the cost behavior of manufacturing overhead costs. Specifically, he wants to know how much overhead cost is fixed and how much is variable. The following data are the only records available: 4. Kirkland Company manufactures a part for use in its production of hats. When 10,000 items are produced, the costs per unit are:

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