Question 1

Applied fixed overhead is computed using the ________ amount of the cost driver.

Accepted Answer

A) expected 
B) budgeted 
C) actual 
D) full-capacity 
A) expected 
B) budgeted 
C) actual 
D) full-capacity

Question 2

Goldberg Industries reported the following information about the production and sale of its only product during the first month of operations:   Under variable costing,the contribution margin is ________.

Accepted Answer

A) $7,000 
B) $21,000 
C) $33,000 
D) $34,500 
A) $7,000 
B) $21,000 
C) $33,000 
D) $34,500

Question 3

Andersen Industries Inc.reported the following information about the production and sale of its only product during the first month of operations:   Under absorption costing,what is the Gross Profit?

Accepted Answer

A) $0 
B) $40,000 
C) $84,000 
D) $104,000 
A) $0 
B) $40,000 
C) $84,000 
D) $104,000

Question 4

Accountants use actual overhead rates when applying overhead costs to jobs as they are completed.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) work-in-process inventory,finished goods inventory and direct material inventory 
B) work-in-process inventory,direct material inventory and cost of goods sold 
C) work-in-process inventory and direct materials inventory 
D) work-in-process inventory,finished goods inventory and cost of goods sold 
A) work-in-process inventory,finished goods inventory and direct material inventory 
B) work-in-process inventory,direct material inventory and cost of goods sold 
C) work-in-process inventory and direct materials inventory 
D) work-in-process inventory,finished goods inventory and cost of goods sold

Question 6

Differences between variable-costing and absorption-costing operating income can be explained by the change in units in beginning and ending inventory of finished goods.

Accepted Answer

A) True 
 B)False

Question 7

Product costs for variable costing include direct materials,direct labor and ________.

Accepted Answer

A) variable selling costs 
B) fixed manufacturing overhead costs 
C) variable manufacturing overhead costs 
D) variable manufacturing overhead costs plus variable selling costs 
A) variable selling costs 
B) fixed manufacturing overhead costs 
C) variable manufacturing overhead costs 
D) variable manufacturing overhead costs plus variable selling costs

Question 8

Dodge Company had the following information:   Assume machine hours are the cost driver of factory overhead costs.The budgeted factory overhead rate is ________.

Accepted Answer

A) $2.025 per machine hour 
B) $2.05 per machine hour 
C) $2.25 per machine hour 
D) $2.875 per machine hour 
A) $2.025 per machine hour 
B) $2.05 per machine hour 
C) $2.25 per machine hour 
D) $2.875 per machine hour

Question 9

An unfavorable production volume variance decreases the manufacturing costs shown on the income statement.

Accepted Answer

A) True 
 B)False

Question 10

The excess of actual overhead costs over the applied overhead costs is called ________.

Accepted Answer

A) overapplied overhead 
B) underapplied overhead 
C) underbudgeted overhead 
D) overestimated overhead 
A) overapplied overhead 
B) underapplied overhead 
C) underbudgeted overhead 
D) overestimated overhead

Question 11

To compute contribution margin under variable costing,we deduct ________ and ________ from sales.

Accepted Answer

A) variable manufacturing costs; fixed manufacturing costs 
B) variable selling costs; fixed manufacturing costs 
C) variable administrative costs; variable selling costs 
D) variable manufacturing costs; variable selling and administrative costs 
A) variable manufacturing costs; fixed manufacturing costs 
B) variable selling costs; fixed manufacturing costs 
C) variable administrative costs; variable selling costs 
D) variable manufacturing costs; variable selling and administrative costs

Question 12

Giants Company had the following information:   Assume the cost driver for factory overhead costs is machine hours and a product uses 10,000 machine hours.What amount of factory overhead is applied to the product?

Accepted Answer

A) $20,000 
B) $20,250 
C) $20,500 
D) $28,750 
A) $20,000 
B) $20,250 
C) $20,500 
D) $28,750

Question 13

________ is used for external reporting.

Accepted Answer

A) Absorption costing 
B) Variable costing 
C) Direct costing 
D) Activity-based costing 
A) Absorption costing 
B) Variable costing 
C) Direct costing 
D) Activity-based costing

Question 14

USC Company has the following information available:   Assume direct labor hours are the cost driver of factory overhead costs.The budgeted factory overhead rate is ________.

Accepted Answer

A) $3.57 per direct labor hour 
B) $3.81 per direct labor hour 
C) $4.00 per direct labor hour 
D) $4.50 per direct labor hour 
A) $3.57 per direct labor hour 
B) $3.81 per direct labor hour 
C) $4.00 per direct labor hour 
D) $4.50 per direct labor hour

Question 15

The production volume variance appears when ________.

Accepted Answer

A) the actual production volume equals the expected production volume used in computing the fixed overhead rate 
B) the actual production volume deviates from the expected production volume used in computing the fixed overhead rate 
C) the actual production volume deviates from the expected production volume used in computing the variable overhead rate 
D) the actual production volume equals the expected production volume used in computing the variable overhead rate 
A) the actual production volume equals the expected production volume used in computing the fixed overhead rate 
B) the actual production volume deviates from the expected production volume used in computing the fixed overhead rate 
C) the actual production volume deviates from the expected production volume used in computing the variable overhead rate 
D) the actual production volume equals the expected production volume used in computing the variable overhead rate

Question 16

Under absorption-costing,fixed factory overhead costs appear only in cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 17

What variance(s)is(are)computed for variable overhead costs?

Accepted Answer

A) production volume variance 
B) flexible budget variance 
C) quality variance 
D) production volume variance and flexible budget variance 
A) production volume variance 
B) flexible budget variance 
C) quality variance 
D) production volume variance and flexible budget variance

Question 18

What variance(s)is(are)computed for fixed overhead costs?

Accepted Answer

A) production volume variance 
B) flexible budget variance 
C) efficiency variance 
D) production volume variance and flexible budget variance 
A) production volume variance 
B) flexible budget variance 
C) efficiency variance 
D) production volume variance and flexible budget variance

Question 19

Today Industries Inc.reported the following information about the production and sale of its only product during the first month of operations:   The company sold one-half of the units it produced.The company uses absorption costing.Fixed factory overhead costs included in the ending inventory of finished goods are ________.

Accepted Answer

A) 0 
B) $6,000 
C) $8,400 
D) $12,000 
A) 0 
B) $6,000 
C) $8,400 
D) $12,000

Question 20

Brucker Industries Inc.reported the following information about the production and sale of its only product during the first month of operations:   Under variable costing,the variable manufacturing cost of goods sold is ________.

Accepted Answer

A) $42,000 
B) $48,000 
C) $84,000 
D) $96,000 
A) $42,000 
B) $48,000 
C) $84,000 
D) $96,000

Applied fixed overhead is computed using the ________ amount of the cost driver.

Goldberg Industries reported the following information about the production and sale of its only product during the first month of operations: Under variable costing,the contribution margin is ________.

Andersen Industries Inc.reported the following information about the production and sale of its only product during the first month of operations: Under absorption costing,what is the Gross Profit?

Accountants use actual overhead rates when applying overhead costs to jobs as they are completed.

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

Differences between variable-costing and absorption-costing operating income can be explained by the change in units in beginning and ending inventory of finished goods.

Product costs for variable costing include direct materials,direct labor and ________.

Dodge Company had the following information: Assume machine hours are the cost driver of factory overhead costs.The budgeted factory overhead rate is ________.

An unfavorable production volume variance decreases the manufacturing costs shown on the income statement.

The excess of actual overhead costs over the applied overhead costs is called ________.

To compute contribution margin under variable costing,we deduct and from sales.

Giants Company had the following information: Assume the cost driver for factory overhead costs is machine hours and a product uses 10,000 machine hours.What amount of factory overhead is applied to the product?

________ is used for external reporting.

USC Company has the following information available: Assume direct labor hours are the cost driver of factory overhead costs.The budgeted factory overhead rate is ________.

The production volume variance appears when ________.

Under absorption-costing,fixed factory overhead costs appear only in cost of goods sold.

What variance(s)is(are)computed for variable overhead costs?

What variance(s)is(are)computed for fixed overhead costs?

Brucker Industries Inc.reported the following information about the production and sale of its only product during the first month of operations: Under variable costing,the variable manufacturing cost of goods sold is ________.

Managerial Accounting, the Business Organization

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 13: Accounting for Overhead Costs

Applied fixed overhead is computed using the ________ amount of the cost driver.

Goldberg Industries reported the following information about the production and sale of its only product during the first month of operations: Under variable costing,the contribution margin is ________.

Andersen Industries Inc.reported the following information about the production and sale of its only product during the first month of operations: Under absorption costing,what is the Gross Profit?

Accountants use actual overhead rates when applying overhead costs to jobs as they are completed.

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

Differences between variable-costing and absorption-costing operating income can be explained by the change in units in beginning and ending inventory of finished goods.

Product costs for variable costing include direct materials,direct labor and ________.

Dodge Company had the following information: Assume machine hours are the cost driver of factory overhead costs.The budgeted factory overhead rate is ________.

An unfavorable production volume variance decreases the manufacturing costs shown on the income statement.

The excess of actual overhead costs over the applied overhead costs is called ________.

To compute contribution margin under variable costing,we deduct ________ and ________ from sales.

Giants Company had the following information: Assume the cost driver for factory overhead costs is machine hours and a product uses 10,000 machine hours.What amount of factory overhead is applied to the product?

________ is used for external reporting.

USC Company has the following information available: Assume direct labor hours are the cost driver of factory overhead costs.The budgeted factory overhead rate is ________.

The production volume variance appears when ________.

Under absorption-costing,fixed factory overhead costs appear only in cost of goods sold.

What variance(s)is(are)computed for variable overhead costs?

What variance(s)is(are)computed for fixed overhead costs?

Brucker Industries Inc.reported the following information about the production and sale of its only product during the first month of operations: Under variable costing,the variable manufacturing cost of goods sold is ________.

Managerial Accounting, the Business Organization

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

To compute contribution margin under variable costing,we deduct and from sales.