Term
$16,000
2.4 mil/3 mil X 20K |
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Definition
| Steve shipped 3 mil kg of goods to customers for 2.4 mil dollars. A customer orders 20K kg and produces 400K dollars of revenue, the amt of shipping cost assigned to the customer using ABC would be? |
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Definition
| Focuses on the relationship of activity inputs to activity outputs |
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Term
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Definition
| At the time they are used, Raw materials, direct labor, and appl overhead costs are recorded in |
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Term
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Definition
| The document that lists the total cost for a single job is a |
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Term
| total cost/ number of units |
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Definition
| how are unit costs calculated? |
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Term
$400 overapplied
620k/40k=15.5
15.5 x 4200=65100
Actual OH 64,700 |
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Definition
| Company applies overhead based on direct labor hours. At beg of year, they estimate overhead 620k, direct labor hours to be 40K. during feb they have 4,200 direct labor hours. Actual is 64,700. What is overhead and is it under or overapplied? |
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Term
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Definition
| ____ activities are unnecessary activities |
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Term
| 200 x .55=110 ---- total cost=200+500+200+110=1110-----unit cost=1110/5=*202 |
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Definition
| On feb 1, job 12 had beg balance of $200. During feb, direct materials of $500 and direct labor of $200 were added. Overhead is applied to production at 55% of direct labor. There are 5 units in job 12. What is unit cost? |
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Term
65,100
620k/40k=15.5
15.5 x 4200=65100 |
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Definition
| Company applies overhead based on direct labor hours. At beg of year, they estimate overhead 620k, direct labor hours to be 40K. during feb they have 4,200 direct labor hours. What is it overhead applied |
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Term
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Definition
| Which type of costing system works best with a large number of homogeneous products? |
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Term
| estimated annual OH/estimated annual activity level |
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Definition
| Predetermined overhead rate is calculated by |
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Term
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Definition
| A costing system that first assigns costs to activities and then to products |
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Term
| the goods transferred out of completed previous department |
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Definition
| The cost of a departments transferred in goods is the cost of |
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Term
| job order cost sheets for completed jobs |
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Definition
| Which of the following can serve as a ledger for finished goods inventory |
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Term
97,500
75,000 x .30= 22,500+75,000=97,500 |
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Definition
| Company has two inspectors, each earning salary of 75K. one works on inspecting parts received from outside suppliers while the other spends 30% inspecting outside suppliers and 70% on final goods. How much labor cost should be assigned to activity inspecting parts? |
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Term
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Definition
units started and completed
The weighted average costing method treats beginning inventory costs and the accompanying equivalent output as if they belong to the current period.
This is done for costs by adding the manufacturing costs in BWIP to the manufacturing costs incurred during the current period. |
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Term
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Definition
direct labor costs + manufacturing or production costs
You can think of conversion costs as the manufacturing or production costs necessary to convert raw materials into products. |
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Term
| ABC rate for most important overhead cost |
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Definition
| most important OH/ most important activity level hrs |
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Term
| ABC rate for other overhead costs |
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Definition
| other OH costs/ other activity level hrs |
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Term
| Total OH costs (ABC rate) |
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Definition
| (most important activity rate x (most important activity hrs) + (other activity level rate x other activity level hrs) |
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Term
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Definition
| _________ has little advantage over weighted average, if unit costs are calculated for short periods. |
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Term
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Definition
| most firms use this method due to simplicity |
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