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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. What would be the appropriate cost driver to allocate overhead for a call center?

A) Number of customer contacts
B) Total sales dollars
C) Total material cost
D) Number of labor hours

2. 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) $130,000
B) $40,000
C) $70,000
D) $230,000

3. Which overhead cost is associated with batch-level activities?

A) Product engineering wages
B) Property taxes
C) Machine setups
D) Factory insurance

4. What purpose do the notes within financial statements serve to the Financial Accounting Standards Board?

A) Providing a summary of accounting policies
B) Disclosing financial statistics
C) Summarizing totals of financial statements
D) Providing supplementary information as needed

5. A company has three product lines and has historically used the traditional costing system to allocate overhead costs to each product line. Due to significant differences in the production processes for the three product lines, the company implemented an activity-based costing study and identified the activity-based cost for each product, as shown in the following table.
Product A
Product B
Product C
Traditional cost per unit
$558
$1,375
$1,211
Activity-based cost per unit
$675
$1,585
$1,350
Selling price per unit
$650
$1,450
$1,300
What do these data points reveal about the selling price of this company's products?

A) The selling price for only Product B should increase
B) The selling price should increase for all three products
C) No change should be made to the selling price
D) The selling price for only Products A and C should increase

Solutions: