Exam 13: Accounting for Overhead Costs

Applied fixed cost is computed using_____volume.

A company has the following information for its first month of operations: Raw material s used \ 25,000 Sales \ 65 per unit) \ 78,000 Direct 1 abor \ 42,000 Variable factory overhead \ 17,000 Fixed factory overhead unknown Variable selling and administrative \ 3,000 Fixed selling and administrative \ 5,000 Gross profit \ 20,000 Contribution margin unknown The company sold half of the units it produced._____ is the cost of goods sold under absorption costing.

A company has the following information for the current month of operations: Raw materials used \ 37,500 Sales \ 97.50 per unit) \ 117,000 Direct labor \ 63,000 Variable factory overhead \ 25,500 Fixed factory overhead unknown Variable selling and administrative \ 4,500 Fixed selling and administrative \ 7,500 Gross profit \ 45,000 Contribution margin unknown Inventories: Beginning Ending Raw materials 0 \ 10,500 WIP 0 none Finished goods 0 1,200 units _____ is the inventory cost per unit using variable costing.

The following information was gathered for Royals Company: Budgeted direct-labor hours 7,750 Actual direct-labor hours 8,100 Budgeted factory overhead \ 220,875 Actual factory overhead \ 224,970 Assume the cost driver is direct-labor hours.The amount of factory overhead applied is _____.

Kings Company incurred actual overhead costs of $305,000 for the year.A budgeted factory-overhead rate of 150% of direct-labor cost was determined at the beginning of the year.Budgeted factory overhead was $300,000, and budgeted direct-labor cost was $200,000.Actual direct-labor cost was $205,000 for the year.The disposition of the factory-overhead variance for the year assuming an immaterial amount) was a_____.

All variances other than the production-volume variance are essentially flexible-budget variances.

Yankees Company had the following information: Budgeted variable factory overhead \ 66,000 Budgeted fixed factory overhead \ 46,500 Actual variable factory overhead \ 67,500 Actual fixed factory overhead \ 52,500 $\text { Budgeted cost-driver activity levels: }$ Direct-labor hours 30,000 Direct-labor costs \ 150,000 Machine hours 60,000 Production setups 15,000 $\text { Actual cost-driver activity levels: }$ Direct-labor hours 31,500 Direct-labor costs \ 165,600 Machine hours 56,190 Production setups 14,280 The budgeted factory-overhead rate using production setups as the cost driver is _____.

Duke Company had the following data available: Direct materials purchased on account \ 74,000 Direct materi al s requisitioned \ 44,000 Payment for direct materials \ 70,000 Direct materials inventory increased by _____.

The entry to record the application of overhead includes a _____.

The primary difference between variable and absorption costing is the accounting for_____.

Actual product cost may be distorted by fluctuations in production volume.

The most common contributor to a variance between actual overhead and applied overhead is by operating at a different level of volume than the level used as a denominator in calculating the budgeted overhead rate.

The two key items in determining the budgeted factory-overhead rate are budgeted total overhead and _____.

Variable costing is commonly called this

Total overhead applied is the result of multiplying the actual amount of the cost driver by the budgeted overhead rate.

Northstars Company reported the following information about the production and sales of its only product during its first month of operations: Sales \ 225 per unit) \ 405,000 Direct materials used \ 176,000 Direct labor \ 100,000 Variable factory overhead \ 44,000 Fixed factory overhead \ 80,000 Variable selling and administrative expenses \ 20,000 Fixed selling and administrative expenses \ 10,000 Ending inventories: Direct materials -0- WIP -0- Finished goods 400 units _____ units were sold.

When sales exceed production, variable-costing income is greater than absorption-costing income.

Rams Company had the following information: Budgeted factory overhead \ 90,000 Actual factory overhead \ 107,000 Budgeted: Direct-labor costs \ 100,000 Actual: Direct-labor costs \ 107,000 The budgeted factory-overhead rate using direct-labor costs as the cost driver is _____.

The cost driver chosen for applying factory-overhead costs should be the cost driver that _____.

A company has the following information for its first month of operations: Raw materials used \ 37,500 Sales \ 97.50 per unit) \ 117,000 Direct labor \ 63,000 Variable factory overhead \ 25,500 Fixed factory overhead unknown Variable selling and administrative \ 4,500 Fixed selling and administrative \ 7,500 Gross profit \ 45,000 Contribution margin unknown The company sold half of the 2,400 units it produced._____ of factory overhead is included in the ending inventory under absorption costing.