Exam 13: Accounting for Overhead Costs

A normal costing system uses the following _____.

When actual volume is less than expected volume, the production?volume variance is_____.

Roth Company had the following data available: B eginring direct-materials inventory \ 26,000 Beginning WIP Inventory 64,000 Beginning finished-goods inventory 58,000 Direct materials purchased on account 148,000 Direct materials requisitioned 82,000 Direct-labor cost incurred 130,000 Factory overhead incurred 146,000 Cost of goods completed 292,000 Cost of goods sold 256,000 Overhead applicati on rate 150\% as a percent of direct-labor cost) The ending inventory of work in process is _____.

The proration method of disposing of overhead variances assigns the variance in proportion to the sizes of the ending account balances to_____.

_____ assigns both fixed and variable manufacturing costs to the product.

Tigers Company had the following information: Budgeted variable factory overhead \ 66,000 Budgeted fixed factory overhead \ 46,500 Actual variable factory overhead \ 77,500 Actual fixed factory overhead \ 62,500 Budgeted cost-driver activity levels: Direct-labor hours 30,000 Direct-labor costs \ 160,000 Machine hours 60,000 Production setups 15,000 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 machine hours as the cost driver is _____.

Carey Company had the following data available: B eginring direct-materials inventory \ 26,000 B eginning WIP Inventory 64,000 B eginning finished-goods inventory 58,000 Direct materials purchased on account 148,000 Direct materials requisiti oned 82,000 Direct-labor cost incurred 130,000 Factory overhead incurred 146,000 Cost of goods completed 292,000 Cost of goods sold 300,000 Overhead applicati on rate 150\% as a percent of direct-labor cost) The ending inventory of finished goods is _____.

In absorption costing, costs are separated into the major categories of_____.

The immediate write-off method subtracts the underapplied overhead amount from Cost of Goods Sold.

Illinois 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 materi als 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 The cost of goods sold under variable costing is_____.

Ducks 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 produced.

To apply the budgeted overhead to a job, the budgeted overhead rate is multiplied by the _____.

If a department identifies more than one cost driver for overhead costs, the department ideally should _____.

Any difference in variable-costing and absorption-costing operating income can be explained by multiplying the fixed-overhead product-costing rate by the change in the total units in the beginning and ending inventories.

Stars Company reported the following information about the production and sales of its only product during its first month of operations: Sales \ 225 per unit) \ 315,000 Direct materials used \ 160,000 Direct labor \ 100,000 Variable factory overhead \ 60,000 Fixed factory overhead \ 80,000 Variable selling and admiristrative expenses \ 20,000 Fixed selling and administrative expenses \ 30,000 Ending inventories: Direct materials -0- WIP -0- Finished goods 600 units The cost of producing one unit of product using absorption costing is_____.

Absorption-costing income is not affected by production volume.

A production-volume variance is calculated as the applied volume minus the actual volume multiplied by the actual overhead rate.

The amount of fixed manufacturing overhead applied to each unit of production.It is determined by dividing the budgeted fixed overhead by the expected volume of production for the budget period

The most widely used approach in disposing of an overhead variance is proration.

The production-volume variance serves primarily a product costing purpose.