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WGU Accounting for Decision Makers C213 VAC2 Sample Questions:

1. Which two costs would be used to calculate inventory overhead?
Choose 2 answers.

A) Factory electricity costs
B) Administrative office electricity costs
C) Production employee benefits
D) Administrative employee benefits

2. 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) $1,875,000
B) $1,462,500
C) $550,000
D) $412,500

3. What does it mean if a company has a debt ratio of 101.5%?

A) The company has 1.5% more total liabilities than gross sales
B) The company has 1.5% more total liabilities than net income
C) The company has 1.5% more total liabilities than total assets
D) The company has 1.5% more current liabilities than current assets

4. A manufacturer produces three products A, B, and C.
The company uses the following information to determine activity rates for each pool.
Cost Pool
Costs
Total Activity
Pool 1
$300,000
20,000 hours
Pool 2
$20,000
500 pounds
Pool 3
$10,000
100 moves
Data concerning the three products appear in the following table.
Cost Driver
Product A
Product B
Product C
Number of hours
10,000
7,500
2,500
Number of pounds
150
250
100
Number of moves
20
40
50
What is the total amount of overhead applied to Product B?

A) $158,000
B) $265,000
C) $126,500
D) $112,500

5. Which two examples represent financial statement errors?
Choose 2 answers.

A) An accountant unintentionally records amounts as revenue that were prepaid by customers but not yet earned
B) An accounting employee overpays a supplier and receives a portion of the excess as a kickback
C) An outside auditor disagrees with the amount reported as an allowance for uncollectible accounts receivable
D) An accounting department miscalculates the payroll tax due at year-end, resulting in an inaccurate liability

Solutions: