Chapter 1
Manufacturing overhead, direct labor, and direct materials.
What are manufacturing costs?
Used when products are manufactured to order
What is job-order costing?
applied MOH < actual MOH
What is underapplied?
Direct labor + MOH =
What is conversion cost?
The selling cost of an item that costs $250 to make with a 65% markup
What is $412.5?
Debited under manufacturing overhead when a company purchases raw materials
What is indirect materials?
Cost that changes inversely to changes in activity.
What is fixed cost per unit?
Total machine hours: 10 machines used 8 hours per day, 5 days a week, for 52 weeks out of the year.
What is 20,800 machine hours?
Must be equal to (units transferred out + ending inventory)
What is (units transferred in + beginning inventory)?
A line on the cost object graph that represents a relationship between cost and output that is not constant
What is Economist’s Curvilinear Cost Function?
Predetermined overhead rate for a company with the following costs:
$200,000 factory rent, $150,000 CEO salary, $65 worth of indirect materials per product, and 10,000 direct labor hours
What is $95 per DLH?
Journal entry for :
Applied $45,000 in MOH and 16,000 machine hours. Actual $30,000 and 15,000 machine hours.
answer should be
(debit $__ to __, credit $__ to __)
What is debit $15,000 MOH, credit $15,000 COGS?