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WGU Accounting-for-Decision-Makers Exam Syllabus Topics:

WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Given the following information:
Pairs of shoes expected to be produced = 1,950,000
Pairs of shoes produced = 2,500,000
Overhead rate = $0.75
What is the amount of applied overhead?

A) $412,500
B) $1,875,000
C) $550,000
D) $1,462,500

2. Which costs are found in a manufacturing company rather than a service-oriented company?

A) Direct labor costs
B) Raw materials costs
C) Indirect labor costs
D) Selling costs

3. What are the costs associated with two or more business units called?

A) Direct costs
B) Variable costs
C) Product costs
D) Indirect costs

4. A company prepared the following contribution margin income statement for the actual sale of 10,000 shoes:
Sales revenue = $600,000
Variable costs = $400,000
Contribution margin = $200,000
Less fixed costs = $150,000
Net income = $50,000
What would be the forecasted net income for the sale of 14,000 shoes based on the actual results above?

A) $230,000
B) $70,000
C) $130,000
D) $40,000

5. A company presently uses traditional volume-based costing to allocate overhead to its products.
The following table provides information on two of the company's products:
Product A
Product B
Selling price
$8
$12
Direct material
$2
$3
Direct labor
$1
$2
Applied overhead
$3
$4
Gross margin
$2
$3
Overhead that would be applied to Product A would increase to $8 per unit after identifying cost pools and cost drivers, and the overhead applied to Product B would drop to $2 per unit .
How would this change in the way overhead is allocated affect the selling price of both products?

A) The price of neither product would change
B) The price of Product A would decrease, and the price of Product B would increase
C) The price of Product A would increase, and the price of Product B would decrease
D) The price of Product A would increase, and the price of Product B would increase

Solutions: