Exam 13: Accounting for Overhead Costs

Jantore Industries Inc.reported the following information about the production and sale of its only product during the first month of operations: Selling price per unit \ 65,00 Sales \ 78,000 Direct materials used \ 25,000 Direct labor \ 42,000 Variable factory overhead \ 17,000 Fixed factory overhead \ 15,000 Variable selling and administrative expenses \ 3,000 Fixed selling and administrative expenses \ 5,000 Production volume variance 0 The company sold one-half of the units it produced.Under absorption costing,what is the cost of goods sold?

Durante Company reported the following information about the production and sale of its only product during the first month of operations: Selling price per unit \ 300 Sales \ 480,000 Direct materials used \ 220,000 Direct labor \2 00,000 Variable factory overhead \6 0,000 Fixed factory overhead \8 0,000 Variable selling and administrative expenses \2 0,000 Fixed selling and administrative expenses \ 10,000 Ending inventory, Direct Materials 0 Ending inventory, Work-in-process 0 Ending inventory, Finished Goods 400 units Under variable costing,the cost of finished goods ending inventory is ________.

In determining product costs,variable costing and absorption costing differ in the treatment of ________.

When finished goods inventories decrease over an operating period,net income under variable costing ________ net income under absorption costing.

Jimmy Industries Inc.reported the following information about the production and sale of its only product during the first month of operations: Selling price per unit \ 65,00 Sales \ 78,000 Direct materials used \ 25,000 Direct labor \ 42,000 Variable factory overhead \ 17,000 Fixed factory overhead ? Variable selling and administrative expenses \ 3,000 Fixed selling and administrative expenses \ 5,000 Gross profit \ 30,000 Production volume variance 0 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 ________.

There is no production volume variance when expected production volume equals actual production volume.

A direct-costing income statement has a subtotal for ________ whereas an absorption-costing income statement has a subtotal for ________.

The production volume variance appears when ________.

The production volume variance is the difference between ________.

Variable costing is also called ________.

Rocky Company had the following information: Budgeted factory overhead costs \ 90,000 Actual factory overhead costs \ 80,000 Budgeted production setups 12,000 Actual production setups 11,500 Assume production setups are the cost driver for factory overhead costs.The budgeted factory overhead rate is ________.

BOTH variable-costing and absorption-costing include ________ as product costs.

The following information was gathered for all the products made by the BBB Company: Budgeted direct labor hours 8,000 Actual direct labor hours 8,100 Budgeted factory overhead costs \2 24,000 Actual factory overhead costs \2 24,970 Assume the cost driver for factory overhead costs is direct labor hours.What is the amount of overapplied or underapplied overhead?

Assume machine hours are the cost-allocation base for the budgeted rate for fixed overhead costs.The total fixed overhead cost applied to a product is the result of multiplying the ________ by the ________ for the product.

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

The most common reason for a variance between actual overhead costs and applied overhead costs is the actual level of volume does not equal the level used to calculate the budgeted overhead rate.

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

When the actual volume of production exceeds the expected volume of production,the production volume variance is ________ and fixed overhead is ________.

In the immediate write-off approach to overhead variances,overapplied overhead is regarded as a(n)________.

USC Company has the following information available: Budgeted factory overhead costs \ 90,000 Actual factory overhead costs \ 80,000 Budgeted direct labor hours 20,000 Actual direct labor hours 21,000 Assume direct labor hours are the cost driver of factory overhead costs.The budgeted factory overhead rate is ________.