Exam 13: Job-Costing

is (are) used for external reporting.

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

is (are) expensed as a period cost under variable costing.

The accounts that are affected under the proration method

The production- volume variance is usually simply called

Hoosier 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:

A variance that expresses the difference between actual production and the expected volume of production

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

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

Longhorns Company had the following information: Budgeted variable factory overhead \6 6,000 Budgeted fixed factory overhead \4 6,500 Actual variable factory overhead \6 7,500 Actual fixed factory overhead \5 2,500 Budgeted cost driver activity levels: Direct- labor hours 30,000 Direct- labor costs \ 150,000 Machine hours 60,000 Productionsetups 15,000 Actual cost driver activity levels: Direct- labor hours 31,500 Direct-labor costs \ 165,600 Machine hours 56,190 Productionsetups 14,280 The budgeted factory- overhead rate using direct- labor hours as the cost driver is:

The production- volume variance measures the difference between applied and budgeted fixed overhead.

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 adminis trative \ 7,500 Gross profit \ 45,000 Contribution margin unknown The company sold half of the units it produced. _ is the cost of goods sold under absorption costing.

Budgeted factory- overhead rate = total budgeted factory overhead / total actual amount of the cost driver.

In absorption costing, sales revenue less cost of goods sold is:

Frazier Company had the following data available: Directmaterialspurchased on account $\quad\quad\$ 74,000$ Directmaterialsrequisitioned $\quad\quad\$ 41,000$ Direct- labor cost incurred $\quad\quad \$ 65,000$ Factoryoverhead incurred \ 73,000 Factoryoverhead applied \ 81,250 Work in process is increased by:

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

The variable costing method does not include fixed overhead in a product's cost.

If the overhead control account has a credit balance at the end of the period, then:

The following information was gathered for Spartans Company: Budgeted direct-labor hours 34,000 Actual direct- lab or hours 32,400 Budgeted factory overhead \ 144,500 Actual factory overhead \ 149,980 Assume the cost driver is direct- labor hours. The amount of factory overhead applied is:

Marshall Corp. uses a budgeted factory- overhead rate to apply overhead to production. The following data are available for the year: Budgeted factory overhead \ 675,000 Actual factory ow erhead \ 726,000 Budgeted direct-labor costs \ 450,000 Actual direct- lab or costs \ 482,000 End of year balances are as follows: Materials inventory \ 120,000 WIP inventory \ 100,000 Cost of goods sold \ 150,000 Finished goods inventory \ 250,000 Required: a. Determine the budgeted factory- overhead rate based on direct- labor costs. b. What is the applied overhead based on direct- labor costs? c. What is the overhead variance? d. Prorate the overhead variance to the appropriate accounts.