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========================================= ACCT 434 Midterm Exam( New)
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5.( TCO 11) For supply item LK, Boatman Company has been ordering 125 units based on the recommendation of the salesperson who calls on the company monthly. The company has hired a new purchasing agent, who wants to start using the economic-orderquantity method and its supporting decision elements. She has gathered the following information: Annual demand in units 250 Days used per year 250 Lead time, in days 13 Ordering costs $ 100

========================================= ACCT 434 Midterm Exam( New)

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Multiple Choice 10 9 Essay 4 Question 1. Question:( TCO 1) Which of the following is a sign that an ABC system may be useful? Question 2. Question:( TCO 1) Merriamn Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry hours $ 400,000 10,000 hours Account billing lines $ 280,000 4,000,000 lines Account verification accounts $ 150,000 40,000 accounts Correspondence letters $ 50,000 4,000 letters Total costs $ 880,000 How much of account verification costs will be assigned to Department A? Question 3. Question:( TCO 2) Budgeting provides all of the following EXCEPT Question 4. Question:( TCO 2) White planned to use $ 82 of material per unit but actually used $ 80 of material per unit, and planned to