Exam 13: Accounting for Overhead Costs

A company has the following information for its first month of operations: Raw materials used \ 25,000 Sales \ 65 per unit) \ 78,000 Direct labor \ 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 \ 30,000 Contribution margin unknown The company sold half of the units it produced._____ of factory overhead is included in the ending inventory under absorption costing.

In absorption costing, sales revenue less cost of goods sold is_____.

Variable costing regards fixed manufacturing overhead as_____.

In absorption costing, the fixed factory overhead is included_____.

_____ is not an alternative term for absorption costing.

The following information was gathered for Marlins Company: Budgeted direct-labor hours 8,000 Actual direct-labor hours 8,100 Budgeted factory overhead \ 224,000 Actual factory overhead \ 224,970 Assume the cost driver is direct-labor hours.The amount of over/underapplied overhead is_____.

A company that produces more than its planned volume for a year will _____.

The following information was gathered for Gophers Company: Budgeted direct-labor hours 31,000 Actual direct-labor hours 32,400 Budgeted factory overhead \ 147,250 Actual factory overhead \ 149,980 Assume the cost driver is direct-labor hours.The amount of over/underapplied overhead is_____.

A company has the following information for its first month of operations: Sales \ 65 per unit) \ 91,000 Raw materials used 25,000 Direct labor \ 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 \ 30,000 Contribution margin unknown Ending inventories: Raw materials \ 7,000 WIP none Finished goods 1,200 units _____ units were sold during the period.

To assign underapplied overhead or overapplied overhead in proportion to the sizes of the ending accounting balances

A company can increase the accuracy of its product cost information by converting some factory-overhead costs from indirect to direct costs.

Phoenix Company incurred actual overhead costs of $80,000 for the year.A budgeted factory-overhead rate of 210% of direct-labor cost was determined at the beginning of the year.Budgeted factory overhead was $78,750, and budgeted direct-labor cost was $37,500.Actual direct-labor cost was $40,000 for the year.The disposition of the variance, assuming a material amount, would include a_____.

Eddie Company had the following data available: Direct materials purchased on account \ 74,000 Direct materials requisiti oned \ 41,000 Direct-labor cost incurred \ 65,000 Factory overhead incurred \ 77,000 Factory overhead applied \ 85,000 Work in process is increased by _____.

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 The cost of goods sold under variable costing is_____.

In the immediate write-off approach, underapplied overhead is regarded as _____.