# Shared Flashcard Set

## Details

managerial accounting exam 2 review
review questions and problems
22
Accounting
03/16/2016

Term
 \$16,0002.4 mil/3 mil X 20K
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?
Term
 efficiency
Definition
 Focuses on the relationship of activity inputs to activity outputs
Term
 Work in Process
Definition
 At the time they are used, Raw materials, direct labor, and appl overhead costs are recorded in
Term
 job order cost sheet
Definition
 The document that lists the total cost for a single job is a
Term
 total cost/ number of units
Definition
 how are unit costs calculated?
Term
 \$400 overapplied620k/40k=15.515.5 x 4200=65100Actual OH 64,700
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?
Term
Definition
 ____ activities are unnecessary activities
Term
 200 x .55=110 ---- total cost=200+500+200+110=1110-----unit cost=1110/5=*202
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?
Term
 65,100620k/40k=15.515.5 x 4200=65100
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
Term
 process costing
Definition
 Which type of costing system works best with a large number of homogeneous products?
Term
 estimated annual OH/estimated annual activity level
Definition
 Predetermined overhead rate is calculated by
Term
 ABC
Definition
 A costing system that first assigns costs to activities and then to products
Term
 the goods transferred out of completed previous department
Definition
 The cost of a departments transferred in goods is the cost of
Term
 job order cost sheets for completed jobs
Definition
 Which of the following can serve as a ledger for finished goods inventory
Term
 97,50075,000 x .30= 22,500+75,000=97,500
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?
Term
 weighted average method
Definition
 units started and completedThe 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.
Term
 conversion cost
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.
Term
 ABC rate for most important overhead cost
Definition
 most important OH/ most important activity level hrs
Term
 ABC rate for other overhead costs
Definition
 other OH costs/ other activity level hrs
Term
 Total OH costs (ABC rate)
Definition
 (most important activity rate x (most important activity hrs) + (other activity level rate x other activity level hrs)
Term
 FIFO
Definition
 _________ has little advantage over weighted average, if unit costs are calculated for short periods.
Term
 weighted average
Definition
 most firms use this method due to simplicity
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