# accounting 252

hi all ,,

i have a task that you could work only for 5 hours..

*There are 25 multiple-choice questions:*

Know how to calculate unit product cost using ABC costing given the direct material and direct labor per

unit cost and the overhead data for three pools and the amount of the each pool used by the product

Know how to compute the overhead cost per unit using the traditional costing method

Know how to compute the predetermined overhead rate using ABC costing

Know how to compute the selling price of a product given a switch to ABC from the traditional method

Know the definition of Unit-level activity, Batch-level activity, Product-level activity, and Facility-level

activity and apply the definition of a given example

Know the meaning of peanut buttering and know the effect on the product cost of high volume and low

volume products when a firm changes from traditional to ABC costing

Know how to calculate the unit product cost under absorption costing and variable costing

Know how to calculate a companyâ€™s net operating income when there are two divisions and traceable

fixed expenses in both divisions and common fixed expenses

Know how to determine the difference between absorption income and variable income when given the

amount of deferred fixed manufacturing costs were retained or released (Hint: Read the question

very carefully as to which year the question is asking about)

Know what causes net operating income to be higher during a given period under absorption costing

than variable costing

Know how to determine if a promotional campaign is cost effective given the cost of the campaign and

the expected increase in division sales. The question will provide the division sales, variable expenses,

contribution margin, traceable fixed expenses, segment margin, common expenses and current net

operating income. Another question will ask in an advertising campaign is effective by cutting the

selling price to increase sales given the cost of the increased advertising

Know how to calculate the number of units that need to be sold to achieve the same profit as was

earned last year given a change in the firmâ€™s fixed expenses

Know how to calculate the break-even point in sales dollars and in units

Know how to calculate the margin of safety in dollars

Know how to calculate and apply operating leverage to determine the percentage increase in profit

percentage wise given the percentage increase in sales

Know how to calculate the break-even point in sales dollars for a multiple product company

Know how to calculate a unit contribution margin given the units produced and sold, the sales revenue,

the fixed and variable manufacturing expense, and the fixed and variable selling and administrative

expense and the net operating income

Know how to calculate a new net operating profit given the current data for xxx number of units and the

firm intends to sell yyy number of units in the coming year

Know how determine the increase in profit given the current sales and expense data

Know how to determine the number of units to be sold to attain a target profit given the prior years

data

Know how to calculate the annual net operating profit given the direct labor, direct material, variable

factory overhead and marketing expenses, and the annual fixed expenses

*There are 3 problems:*

The first problem from chapter 3 will require you to calculate the unit product cost for two products

using ABC

The second and third problems from chapter 5 will require you to complete a contribution format

income statement and to answer 6 questions on unit cm, cm ratio, BE $, Margin of Safety %, increase

in operating income with increased sales and new BE point with increased variable and fixed costs