Term
|
Definition
No Inventory Account
Sells Employee's time and skills
Largest expense: Wages
Period Costs only |
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Term
|
Definition
Have an Inventory Account
Resells merchandise from suppliers
Largest Expense: COGS
Period and Product Costs |
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Term
|
Definition
Has three accounts: Raw Materials, Work-in-Process, and Finished Goods
Largest expense: COGM
Period and Product Costs |
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Term
| Equation for Cost of Goods Manufactured |
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Definition
COGM = WIP(beg) + DM + DL + MOH - WIP(end)
WIP: Work in Progress
DM: Direct Materials
DL: Direct Labor |
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Term
| Equation for Manufacturing Cost of Goods Sold |
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Definition
| COGS = FG(beg) + COGM - FG(end) |
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Term
| Equation for Merchandising Cost of Goods Sold |
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Definition
| COGS = FG(beg) + Purchases - FG(end) |
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Term
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Definition
Costs accrued over a period of time, cannot be assigned to one aspect of the manufacturing process
i.e. delivery cost |
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Term
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Definition
Costs that can be assigned to one aspect of the manufacturing process
i.e. cost of wax to make crayons
Direct costs: DM, DL
Indirect costs: MOH |
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Term
Which of the following is a direct cost of manufacturing a sport boat?
A. Salary of an engineer who rearranges plant layout
B. Depreciation on plant and equipment
C. Cost of the boat engine
D. Cost of the customer service hotline |
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Definition
| C. Cost of the boat engine |
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Term
Which of the following is not part of manufacturing overhead for producing a computer?
A. Manufacturing plant property taxes
B. Manufacturing plant utilities
C. Depreciation on delivery trucks
D. Insurance on plant and equipment |
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Definition
| C. Depreciation on delivery trucks |
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Term
Suppose a bakery used raw materials of $103,000, direct labor of $29,000, and manufacturing overhead of $20,000. It’s beginning and ending WIP inventory are $3,000 and $2,000, respectively. What is the cost of goods manufactured?
A. $151,000
B. $152,000
C. $153,000
D. $154,000 |
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Definition
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Term
Suppose a company used raw materials of $103,000, direct labor of $29,000, and manufacturing overhead of $20,000. It’s beginning and ending WIP inventory are $3,000 and $2,000, respectively.Further suppose this bakery had beginning and ending finished goods inventory of $4,000 and $6,000, respectively. What is the cost of goods sold?
A. $151,000
B. $152,000
C. $153,000
D. $154,000 |
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Definition
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Term
|
Definition
Unique product/ service
Costs are accumulated for each job
i.e. Fancy yachts |
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Term
|
Definition
Identical units through a series of processes
Cost are accumulated for each process
i.e. Refrigerators |
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Term
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Definition
| As direct costs incur, assign them to a product catagory |
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Term
|
Definition
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Term
|
Definition
Estimate at end of each job
1. Compute allocation rate at the beginning of the year
2. Allocate at the end of the each job |
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Term
|
Definition
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Term
|
Definition
| Adjust the overhead costs at the end of the year |
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Term
|
Definition
| PC = DM + DL + MOH(allocated) |
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Term
Ashley Company uses a job order costing system. In the beginning of year 2015, Ashley estimated that manufacturing overhead would be $90,000, direct labor cost would be $300,000, and direct labor hour would be 2,000 hours. Ashley uses direct labor hour as the allocation base.
What is the predetermined overhead allocation rate?
A. $0.3
B. $33
C. $45
D. $150 |
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Definition
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|
Term
Ashley Company uses a job order costing system. In the beginning of year 2015, Ashley estimated that manufacturing overhead would be $90,000, direct labor cost would be $300,000, and direct labor hour would be 2,000 hours. Ashley uses direct labor hour as the allocation base.
On January 31, Job 25 was completed. It required 2 direct labor hours. What is the amount of manufacturing overhead allocated to the completed job?
A. $0.6
B. $66
C. $90
D. $300 |
|
Definition
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|
Term
Ashley Company uses a job order costing system. In the beginning of year 2015, Ashley estimated that manufacturing overhead would be $90,000, direct labor cost would be $300,000, and direct labor hour would be 2,000 hours. Ashley uses direct labor hour as the allocation base.
On January 31, Job 25 was completed. It required 2 direct labor hours. What is the journal entry to allocate manufacturing overhead? |
|
Definition
WIP Inventory-------- 90
Manufacturing Overhead---------------90 |
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Term
Ashley Company uses a job order costing system. In the beginning of year 2015, Ashley estimated that manufacturing overhead would be $90,000, direct labor cost would be $300,000, and direct labor hour would be 2,000 hours. Ashley uses direct labor hour as the allocation base.
At quarter end, Ashley had allocated a total of $3,500 manufacturing overhead, and had actually incurred a total of $4,000 overhead. What is the adjusting entry Ashley made at quarter end? |
|
Definition
Cost of Goods Sold--------500
Manufacturing Overhead---------------500 |
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Term
| Coulson Company is a manufacturer that produces large customized enterprise computer systems, and uses a job order costing system. In February, Coulson finished Job 445. It included $20,000 of direct materials cost, $25,000 of direct labor cost, and $5,600 of allocated overhead. What is the correct journal entry to record the completed job? |
|
Definition
Finished Goods Inventory--------50,600
Work-in-Process Inventory---------------50,600 |
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Term
| Equivalent Unit Price for Completed |
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Definition
| EUP for Completed = (# completed) * 100% |
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Term
| Equivalent Unit Price for ending Work-in-Process |
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Definition
| EUP for WIP(end) = (# WIP(end)) * (% of completion) |
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Term
Wen Company produces wooden toys and has processes cutting, finishing, and packaging. On March 1, 2016, the finishing department transferred in 60,000 units from the cutting department. By March 31, 2016, 50,000 units were completed and transferred out, and 10,000 units were incomplete and in the ending WIP inventory.
On March 31, 2016, the 10,000 units were 50% complete for conversion costs, and all direct materials are added at the end of the process.
Compute equivalent units of production for transferred in costs, direct material costs, and conversion costs for the finishing department. |
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Definition
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Term
|
Definition
| Costs that change during a period |
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Term
|
Definition
| Costs that remain constant during a period |
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Term
|
Definition
| Both Variable and Fixed Costs (?) |
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Term
|
Definition
[image]
Total Fixed Costs = Total Mixed Costs - Total Variable Costs = TMC - (VC per unit)(# units)
Total Mixed Costs = (VC per unit)(# units) + TFC |
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Term
| Contribution Margin Income Statement |
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Definition
Net Sales Revenue = (total # units)*(cost per unit)
---Variable Costs = (UVC)*(total # units)
Contribution Margin = NSR - VC
---Fixed Costs = (Total Mixed Costs)-(UVC)*(total # units)
Operating Income = CM - FV |
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Term
| Contribution Margin Ratio |
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Definition
| Contribution Margin ÷ Revenue |
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Term
|
Definition
Equation Approach: Profit = Sales revenue – Variable costs – Fixed costs
Contribution Margin Approach: (Unit contribution margin)(Unit number) = Fixed costs + Profit
Contribution Margin Ratio Approach: Sales Revenue = (FC + Profit) ÷ (Contribution Margin Ratio) |
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Term
| Assuming the unit selling price of $16, unit variable cost of $5, and a fixed cost of $1000, if Ward sells 800 units in the next quarter, what would be the operating income? |
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Definition
| OI = (SP * # Units) - (UVC * # units) - FC = 16 * 800 – 5 * 800 – 1,000 = $7,800 |
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Term
| Assuming the unit selling price of $16, unit variable cost of $5, and a fixed cost of $1000, if Ward desires an operating income of $10,000, how many units does Ward need to sell? |
|
Definition
# Units = N
USP(N) - UVC(N) - FC = OI
16N – 5N – 1,000 = 10,000
Solving for N = 1,000 |
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Term
| Sales Budget Journal Entry |
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Definition
--Budgeted # of units sold
--Sales Price per unit
______________________
Total Sales = (Budgeted units) * (Sales Price) |
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Term
| Production Budget Journal Entry |
|
Definition
Budgeted tablets to be sold
Plus: Desired tablets in ending inventory
Total tablets needed = Budgeted + Desired ending inventory
Less: Tablets in beginning inventory
Budgeted tablets to be produced = Total Needed - Tablets in beginning inventory |
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Term
| Direct Materials Budget Journal Entry |
|
Definition
Budgeted tablets to be produced
Direct materials cost per unit
Direct materials needed for production = Budgeted * DM cost/unit
Plus: Desired direct materials in ending inventory = next period's DM needed for production * Desired ending Raw Materials
Total direct materials needed = DM needed for production + DM desired
Less: Direct materials in beginning inventory
Budgeted purchases of direct materials = TD needed - DM beg |
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Term
| Direct Labor Budget Journal Entry |
|
Definition
Budgeted tablets to be produced
Direct labor hours per unit
Direct labor hours needed for production = Budgeted production * hrs per unit
Direct labor cost per hour
Budgeted direct labor cost = Direct labor hours needed * Direct labor cost / hr |
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Term
| Manufacturing overhead budget journal entry |
|
Definition
Budgeted units to be produced
VOH cost per unit
Budgeted VOH = Budgeted tables * VOH/unit
Budgeted FOH
---Depreciation
---Utilities, insurance, property taxes
Total budgeted FOH = Depreciation +U/I/PT
Budgeted manufacturing overhead costs = Budgeted VOH + FOH
Direct labor hours (DLHr)
Budgeted manufacturing overhead costs
Predetermined overhead allocation rate ($154,560 / 6,720 DLHr) |
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Term
|
Definition
Cash receipts
Cash payments
Short-term financing |
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Term
|
Definition
SBV = AR - SB
AR: Actual Results
SB: Static Budget |
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Term
|
Definition
FBV = AR - FB
AR: Actual Results
FB: Flexible Budget |
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Term
|
Definition
SVV = FB - SB
FB: Flexible Budget
SB: Static Budget |
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Term
|
Definition
CV = (AC - SC) * AQ
AC: Actual UNIT Cost
SC: Standard UNIT Cost
AQ: Actual cost |
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Term
|
Definition
EV = (AQ - SQ) * SC
AQ: Actual Quantity
SQ: Standard Quantity
SC: Standard Cost |
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Term
|
Definition
a) Direct Materials
CV = (AC – SC) * AQ = (0.21 – 0.16) * 108,000 * 2 = 10,800 U
EV = (AQ – SQ) * SC = (212,000 – 108,000 * 2) * 0.16 = 640 F
b) Direct labor
CV = (AC – SC) * AQ = (8.15 – 8) * 1,660 = 249 U
EV = (AQ – SQ) * SC = (1,660 – 108,000 * 0.02) * 8 = 4,000 F |
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Term
What is not a characteristic of Managerial Accounting Information?
a. Emphasizes the external financial statements
b. Provides detailed financial statements
c. Emphasizes relevance
d. Focuses on the future |
|
Definition
| a. Emphasizes the external financial statements |
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|
Term
An accountant who avoids conflicts of interest meets the ethical standard of:
a. Confidentiality
b. Competence
c. Credibility
d. Integrity |
|
Definition
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|
Term
Which of the following accounts does a manufacturing company have, that a service company would not have?
a. Advertising Expense
b. Salaries Payable
c. Cost of Goods Sold
d. Retained Earnings |
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Definition
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|
Term
Dunaway Company reports the following costs for the year:
Direct Material Used: $120,000
Direct Labor Incurred: $150,000
Manufacturing Overhead Incurred: $75,000
Selling and Administrative Expenses: $175,000
How much are Dunaway’s period costs?
a. $120,000
b. $270,000
c. $345,000
d. $175,000 |
|
Definition
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|
Term
Which of the following is a direct cost of manufacturing a sport boat?
a. Salary of an engineer who arranges plant layout
b. Depreciation on plant and equipment
c. Cost of the boat engine
d. Cost of the customer service hotline |
|
Definition
| c. Cost of the boat engine |
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|
Term
Which is not part of manufacturing overhead for producing a computer?
a. Manufacturing plant property taxes
b. Manufacturing plant utilities
c. Depreciation on delivery trucks
d. Insurance on plant and equipment |
|
Definition
| c. Depreciation on delivery trucks |
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|
Term
Beginning Raw Materials Inventory: $6,000
Ending Raw Materials Inventory: $5,000
Beginning Work-in-Progress Inventory: $3,000
Ending Work-in-Progress Inventory: $2,000
Beginning Finished Goods Inventory: $4,000
Ending Finished Goods Inventory: $6,000
Direct Labor: $29,000
Purchases of Raw Materials: $102,000
Manufacturing Overhead: $20,000
What is the cost of direct materials used?
a. $101,000
b. $103,000
c. $114,000
d. $102,000 |
|
Definition
|
|
Term
Beginning Raw Materials Inventory: $6,000
Ending Raw Materials Inventory: $5,000
Beginning Work-in-Progress Inventory: $3,000
Ending Work-in-Progress Inventory: $2,000
Beginning Finished Goods Inventory: $4,000
Ending Finished Goods Inventory: $6,000
Direct Labor: $29,000
Purchases of Raw Materials: $102,000
Manufacturing Overhead: $20,000
What is the cost of goods manufactured?
a. $151,000
b. $153,000
c. $150,000
d. $177,000 |
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Definition
|
|
Term
If a manufacturing company uses direct materials, it assigns the cost by debiting:
a. Direct Material
b. Work-in-Process Inventory
c. Manufacturing Overhead
d. Raw Materials Inventory |
|
Definition
| b. Work-in-Process Inventory |
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|
Term
When a manufacturing company uses indirect materials, it accumulates the cost by debiting:
a. Work-in-Process Inventory
b. Indirect Materials
c. Raw Material Inventory
d. Manufacturing Overhead |
|
Definition
| d. Manufacturing Overhead |
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|
Term
Ifa manufacturing company uses direct labor, it assigns the cost by debiting:
a. Work-in-Progress Inventory
b. Manufacturing Overhead
c. Direct Labor
d. Wages Payable |
|
Definition
| a. Work-in-Progress Inventory |
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|
Term
A manufacturing company completed work on a job. The cost of the job is now transferred into ________ with a ____________.
a. Work-in-Process Inventory; debit
b. Finished Goods Inventory; credit
c. Finished Goods Inventory; debit
d. Cost of Goods Sold; credit |
|
Definition
| c. Finished Goods Inventory; debit |
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|
Term
Assume Gell allocates Manufacturing overhead based on machine hours, there were an estimate of 12,000 machine hours and $93,000 of manufacturing overhead costs, and they actually used 16,000 machine hours and incurred the follow actual costs:
Indirect Labor: $11,000
Depreciation on Plant: $48,000
Machinery Repair: $11,000
Direct Labor: $75,000
Plant Supplies: $6,000
Plant Utilities: $7,000
Advertising: $35,000
Sales Commissions: $27,000
What is Gell’s predetermined overhead allocation rate?
a. $7.75/ machine hour
b. $5.81/ machine hour
c. $6.92/ machine hour
d. $5.19/ machine hour |
|
Definition
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|
Term
Assume Gell allocates Manufacturing overhead based on machine hours, there were an estimate of 12,000 machine hours and $93,000 of manufacturing overhead costs, and they actually used 16,000 machine hours and incurred the follow actual costs:
Indirect Labor: $11,000
Depreciation on Plant: $48,000
Machinery Repair: $11,000
Direct Labor: $75,000
Plant Supplies: $6,000
Plant Utilities: $7,000
Advertising: $35,000
Sales Commissions: $27,000
What is Gell’s actual manufacturing overhead cost?
a. $158,000
b. $83,000
c. $145,000
d. $220,000 |
|
Definition
|
|
Term
Assume Gell allocates Manufacturing overhead based on machine hours, there were an estimate of 12,000 machine hours and $93,000 of manufacturing overhead costs, and they actually used 16,000 machine hours and incurred the follow actual costs:
Indirect Labor: $11,000
Depreciation on Plant: $48,000
Machinery Repair: $11,000
Direct Labor: $75,000
Plant Supplies: $6,000
Plant Utilities: $7,000
Advertising: $35,000
Sales Commissions: $27,000
How much manufacturing overhead would Gell allocate?
a. $83,000 c. $124,000
b. $93,000 d. $220,000 |
|
Definition
|
|
Term
Assume Gell allocates Manufacturing overhead based on machine hours, there were an estimate of 12,000 machine hours and $93,000 of manufacturing overhead costs, and they actually used 16,000 machine hours and incurred the follow actual costs:
Indirect Labor: $11,000
Depreciation on Plant: $48,000
Machinery Repair: $11,000
Direct Labor: $75,000
Plant Supplies: $6,000
Plant Utilities: $7,000
Advertising: $35,000
Sales Commissions: $27,000
What entry would Gell make to adjust the manufacturing overhead account for over-allocated or under-allocated overhead? |
|
Definition
Manufacturing Overhead---$41,000
COGS---------------------------------$41,000 |
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|
Term
What company is least like to use a process costing system?
a. Paper manufacturer
b. Soft drink bottler
c. Accounting firm
d. Petroleum processor |
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Definition
|
|
Term
What characteristic is the same in both job order costing systems and process costing systems?
a. Types of product costs
b. Flow of costs through the accounts
c. Number of Work-in-Process Inventory accounts
d. Method of record keeping |
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Definition
| a. Types of product costs |
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|
Term
[image]
How many units were completed and transferred out?
a. 150 units
b. 1,500 units
c. 1,350 units
d. 1,550 units |
|
Definition
|
|
Term
[image]
For conversion costs, the equivalent units of production are
a. 1,700 units
b. 1,580 units
c. 1,500 units
d. 1,550 units |
|
Definition
b. 1,580 units
Finished Goods + % complete |
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|
Term
[image]
The cost per equivalent unit for direct materials is
a. $2.00
b. $4.00
c. $8.00
d. $14.00 |
|
Definition
|
|
Term
[image]
Of the $3,400 costs for direct materials, what amount will be transferred out?
a. $3,400
b. $300
c. $1,200
d. $3,100 |
|
Definition
|
|
Term
Conversion costs are
a. Direct materials plus direct labor
b. Direct labor plus manufacturing overhead
c. Direct materials plus manufacturing overhead
d. Indirect materials plus indirect labor |
|
Definition
| b. Direct labor plus manufacturing overhead |
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|
Term
| Department 1 completed work on 500 units and transferred them to Department 2. The cost of the units was $750. What is the journal entry? |
|
Definition
Work-in-Process Inventory: Dept. 2---750
Work-in-Process Inventory: Dept.1---------750 |
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|
Term
Assume Intervale Railway is considering hiring a reservations agency to handle passenger reservations. The agency would charge a flat fee of $13,000 per month, plus $3 per passenger reservation. What is the total reservation cost is 200,000 passengers take the trip next month?
a. $613,000
b. $3.07
c. $600,000
d. $13,000 |
|
Definition
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|
Term
If Intervale Railway’s fixed cost total $90,000 per month, the variable cost per passenger is $45, and tickets sell for $75, what is the contribution margin per unit and contribution margin ratio?
a. $45 per passenger; 60%
b. $30 per passenger; 60%
c. $30 per passenger; 40%
d. $45 per passenger; 40% |
|
Definition
| c. $30 per passenger; 40% |
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|
Term
If everything stays the same, how much revenue must the railway generate to earn $120,000 in operating income per month?
a. $350,000
b. $210,000
c. $7,000
d. $525,000 |
|
Definition
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|
Term
If everything stays the same, what is the breakeven quantity?
a. 1,200 passengers
b. 2,000 passengers
c. 225,000 passengers
d. 3,000 passengers |
|
Definition
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|
Term
Rocky Mountain Waterpark sells half of its tickets for the regular price of $75. The other half go to seniors and kids for $35. Variable cost is $15 per passenger, and fixed costs equal $60,000 per month. What is the breakeven point in total guests? Regular guests? Discount guests?
a. 2,000; 1,000; 1,000
b. 800; 400; 400
c. 750; 375; 375
d. 1,500; 750; 750 |
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Definition
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|
Term
Donovan Co. incurred the following costs while producing 500 units; direct materials, $10 per unit; direct labor, $25 per unit; variable manufacturing overhead, $15 per unit; total fixed overhead costs, $10,000; variable selling and administrative costs, $5 per unit; total fixed selling & administrative costs, $7,500.
What is the per unit product cost using variable costing?
a. $50 per unit
b. $55 per unit
c. $70 per unit
d. $90 per unit |
|
Definition
|
|
Term
Donovan Co. incurred the following costs while producing 500 units; direct materials, $10 per unit; direct labor, $25 per unit; variable manufacturing overhead, $15 per unit; total fixed overhead costs, $10,000; variable selling and administrative costs, $5 per unit; total fixed selling & administrative costs, $7,500.
The operating income using variable costing if 450 units are sold @ $100?
a. $2,750
b. $5,000
c. $500
d. $2,500 |
|
Definition
|
|
Term
A company prepares a five year budget. It is considered a(n);
a. Strategic budget
b. Operational budget
c. Maser budget
d. Flexible budget |
|
Definition
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|
Term
Which of the following is the cornerstone of the master budget?
a. Selling & admin. expense budget
b. Budget balance sheet
c. Sales budget
d. Production budget |
|
Definition
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|
Term
Iron City sells a 10-inch cast iron skillet for $20, and they project sales of 500 per month. The production costs are $9 per skillet for direct materials, $1 per skillet for direct labor, $2 per skillet for manufacturing overhead. At the beginning of July, they had 50 skillets in inventory, but they want an ending inventory equal to 20% of next month’s sales. Selling and administrative expenses are $1,500 per month.
How many skillets should Iron City produce in July?
a. 500 skillets
b. 550 skillets
c. 600 skillets
d. 650 skillets |
|
Definition
|
|
Term
Iron City sells a 10-inch cast iron skillet for $20, and they project sales of 500 per month. The production costs are $9 per skillet for direct materials, $1 per skillet for direct labor, $2 per skillet for manufacturing overhead. At the beginning of July, they had 50 skillets in inventory, but they want an ending inventory equal to 20% of next month’s sales. Selling and administrative expenses are $1,500 per month.
Compute the total amount budgeted for production costs for July.
a. $6,000
b. $6,500
c. $6,600
d. $7,200 |
|
Definition
|
|
Term
Iron City sells a 10-inch cast iron skillet for $20, and they project sales of 500 per month. The production costs are $9 per skillet for direct materials, $1 per skillet for direct labor, $2 per skillet for manufacturing overhead. At the beginning of July, they had 50 skillets in inventory, but they want an ending inventory equal to 20% of next month’s sales. Selling and administrative expenses are $1,500 per month.
Compute the budgeted costs of goods sold for July.
a. $6,000
b. $6,500
c. $6,600
d. $7,200 |
|
Definition
|
|
Term
Iron City sells a 10-inch cast iron skillet for $20, and they project sales of 500 per month. The production costs are $9 per skillet for direct materials, $1 per skillet for direct labor, $2 per skillet for manufacturing overhead. At the beginning of July, they had 50 skillets in inventory, but they want an ending inventory equal to 20% of next month’s sales. Selling and administrative expenses are $1,500 per month.
Compute the budgeted gross profit for July.
a. $6,000
b. $5,000
c. $4,000
d. $3,000 |
|
Definition
|
|
Term
Which of the following would not appear in the cash budget? a. Depreciation expense
b. Interest expense
c. Marketing expense
d. Wages expense |
|
Definition
|
|
Term
Mallcentral sells 1,000 hardcover books per day, at an average price of $30. Their cost is 75% of the selling price for retail customers. They have no beginning inventory, but they want to have a three-day supply of ending inventory. Selling and administrative expenses are $1,000 per day.
Compute Mallcentral’s budgeted sales for the next (7-day) week.
a. $157,500
b. $217,000
c. $435,000
d. $210,000 |
|
Definition
|
|
Term
Mallcentral sells 1,000 hardcover books per day, at an average price of $30. Their cost is 75% of the selling price for retail customers. They have no beginning inventory, but they want to have a three-day supply of ending inventory. Selling and administrative expenses are $1,000 per day.
Compute Mallcentral’s budgeted purchases for the next (7-day) week.
a. $300,000
b. $225,000
c. $157,500
d. $75,000 |
|
Definition
|
|
Term
MajorNet Systems has budged variable costs of $145 for each connecter they produce, and fixed costs of $7,500 per month. Their static budget predicted production and sales of 100 budgets, but they only sold 84, at a total cost of $21,000
MajorNet’s total flexible budget cost for 84 connectors per month is
a. $14,500
b. $12,180
c. $19,680
d. $21,000 |
|
Definition
|
|
Term
MajorNet Systems has budged variable costs of $145 for each connecter they produce, and fixed costs of $7,500 per month. Their static budget predicted production and sales of 100 budgets, but they only sold 84, at a total cost of $21,000.
MajorNet’s sales volume variance for total costs is
a. $1,320 U.
b. $1,320 F.
c. $2,320 U
d. $2,320 F |
|
Definition
|
|
Term
MajorNet Systems has budged variable costs of $145 for each connecter they produce, and fixed costs of $7,500 per month. Their static budget predicted production and sales of 100 budgets, but they only sold 84, at a total cost of $21,000.
MajorNet’s flexible budget variance for total costs is
a. $1,320 U.
b. $1,320 F.
c. $2,320 U
d. $2,320 F |
|
Definition
|
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Term
MajorNet Systems has budged variable costs of $145 for each connecter they produce, and fixed costs of $7,500 per month. Their static budget predicted production and sales of 100 budgets, but they only sold 84, at a total cost of $21,000.
MajorNet’s managers could set direct labor standards based on
a. Time-and-motion studies
b. Continuous improvement
c. Benchmarking
d. All of the above |
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Definition
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Term
| MajorNet’s static budget predicted sales of 100 connectors, but only sold 84. Direct materials were budgeted at $95 per conductor. The direct materials used cost $8,148. What is the correct journal entry for the materials used? |
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Definition
Work-in-Process Inventory ---- 7980
Direct Mat. Efficiency Variance - 168
Raw Materials Inventory -------------8148 |
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Term
FrontGrade Systems allocates manufacturing overhead based on machine hours. Each connector should require 11 machine hours. They expected the following:
1,100 machine hours per month (100 connectors X 11 hours per connector)
$5,500 in variable manufacturing overhead costs
$8,250 in fixed manufacturing overhead costs
During August, FrontGrade actually used 1,000 machine hours to make 110 connectors and spent $5,600 in variable manufacturing costs and $8,300 in fixed manufacturing overhead costs.
FrontGrade’s standard variable manufacturing overhead allocation rate is
a. $5.00 per machine hour c. $7.50 per machine hour
b. $5.50 per machine hour d. $12.50 per machine hour |
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Definition
| a. $5.00 per machine hour |
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Term
FrontGrade Systems allocates manufacturing overhead based on machine hours. Each connector should require 11 machine hours. They expected the following:
1,100 machine hours per month (100 connectors X 11 hours per connector)
$5,500 in variable manufacturing overhead costs
$8,250 in fixed manufacturing overhead costs
During August, FrontGrade actually used 1,000 machine hours to make 110 connectors and spent $5,600 in variable manufacturing costs and $8,300 in fixed manufacturing overhead costs.
Calculate the variable overhead cost variance for FrontGrade. a. $450 F c. $1,050 F
b. $600 U d. $1,650 F |
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Definition
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Term
FrontGrade Systems allocates manufacturing overhead based on machine hours. Each connector should require 11 machine hours. They expected the following:
1,100 machine hours per month (100 connectors X 11 hours per connector)
$5,500 in variable manufacturing overhead costs
$8,250 in fixed manufacturing overhead costs
During August, FrontGrade actually used 1,000 machine hours to make 110 connectors and spent $5,600 in variable manufacturing costs and $8,300 in fixed manufacturing overhead costs.
Calculate the variable overhead efficiency variance for FrontGrade.
a. $450 F c. $1,050 F
b. $600 U d. $1,650 F |
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Definition
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Term
The person most responsible for the direct labor efficiency variance is
a. The marketing manager c. The human resources manager
b. The production manager d. The purchasing manager |
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Definition
| b. The production manager |
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