Process Costing
What is the formula for the cost per equivalent unit of production?
(Beginning Costs + Costs Added) / EUP
Providing power to run production equipment is an example of a:
A-Unit level activity
B-Batch level activity
C-Product level activity
Unit Level Activity
What is the formula for the Direct Materials Price Variance?
Actual Quantity Purchased (Standard Price per unit - Actual Price per unit)
Name the coolest MAcc program that is also ranked in the top ten nationally
Roll Tide!!!
What was the top grossing movie of 2020?
A- 1917
B- Bad Boys for Life
C- Jumanji - The Next Level
Bad Boys for Life
What is an equivalent unit?
Number of units multiplied by the percent complete
Explain the first stage allocation to get overhead costs into activity pools.
For each overhead item, determine the appropriate percentage that should be allocated to each pool.
If the direct labor efficiency variance is unfavorable, what do you know?
Direct Labor Efficiency Variance = SP (SQ-AQ)
If positive, then the actual hours worked is less than the standard hours required.
In what situations might you use Process Costing?
Homogeneous items that are continually produced.
What is Billboard's top song of 2020?
A- Blinding Light by The Weekend
B- Circles by Post Malone
C- The Box by Roddy Ricch
Blinding Light by The Weekend
Complete the following equation:
Beginning WIP + Units Started = Completed Units + ________
Ending WIP
Which of the following would be a product-level activity?
A-Operating a cafeteria for the employees
B-Running an HR department
C-Advertising a product
Advertising a product
Actual pounds purchased = 5100
Actual pounds used = 5000
Standard rate per pound = $10
Material price variance = 2550
What is the actual price per pound?
AQ(SP - AP)
5100(10 - AP) = 2000
51,000 - 5100AP = 2550
48,450 = 5100AP
AP = $9.5
100% of the direct materials are added at the beginning of production. 20,000 units were completed and 3,000 units are in ending WIP. What are the Equivalent Units of Production?
23,000
What is the most binge-watched show of 2020?
A- The Office
B- Friends
C- Grey's Anatomy
Friends
Explain the process to assign costs to Ending WIP and Finished Goods.
Ending WIP = Cost per EUP * EUP in Ending WIP
Finished Goods = Cost per EUP * Units Completed
Name three ways in which ABC is different from a traditional costing system.
1-Not all manufacturing costs are included
2-Some period costs are included
3-Lots of cost pools
Standard cost per DL hour = $5
Actual direct labor hours = 6,500
Labor Efficiency Variance = $3,500 Favorable
Standard number of DL hours per unit = 2
What is the total number of units produced?
SP(SQ-AQ) = $3,500
5(2X - 6500) = 3,500
10X - 32,500 = 3,500
X = 3600
Describe a potential bad consequence to a Favorable Labor Rate Variance.
Increased employee turnover
Unqualified employees
What was the top hashtag of 2020?
A- #Covid19
B- #Love
C- #Beautiful
#Love
The beginning work in process inventory in a particular department consisted of 6,000 units, two-thirds complete with respect to material costs. During the month, 22,000 units were started and 18,000 units were completed. The company had 24,000 equivalent units for material costs. The ending work in process inventory in the department consisted of:
10,000 units, 60% complete
Allocation rate from the fabrication pool is $40 per machine hours. The total amount in the fabrication pool is $2,000,000. What is the total estimated machine hours used to calculate the rate?
$2,000,000/X = $40
X = 50,000
An unfavorable Material Price Variance due to poor production scheduling should be charged to who?
Production department
Actual direct labor hours worked 5,800 hours
Standard direct labor rate $14 per hour
Labor price variance $1,160 unfavorable
What is the actual direct labor rate?
$14.20
Who of the following had the most Twitter followers last year?
Justin Bieber
Katy Perry
Christiano Ronaldo
Justin Bieber - 114,040,000