Vocabulary
Multiple Choice
Vocabulary 2
Formulas
Misc
100
Type of firm that involves combining Direct Materials, Direct Labor, and Overhead to make a product.
Manufacturing
100
Actual or Normal Costing:
applies overhead through a predefined overhead rate.
Normal Costing
100
Accumulated Costs are assigned to units of products manufactured or services delivered
Cost Assignment
100
(V.MOH + F. MOH) / Activity Level
Predetermined Overhead Rate
100
The image below is an example of?
Job Order Cost sheet
200
The accounting system satisfies the need for cost accumulation, cost measurement, and cost assignment.
Cost Accounting System
200
Normal or Expected Activity Level:
The average activity usage that a firm experiences in the long term.
Normal Activity Level
200
The production level that a firm expects to attain for the coming period
Expected Activity Level
200
Total Manufacturing Cost / # of Units Produced
Unit Cost
200
This cost is debited to the overhead control account
Actual Overhead expenses
300
Uses actual costs for direct materials direct labor and overhead to determine unit cost
Actual Costing
300
Debit or Credit:
To close the overhead variance account for under-applied overhead, do you debit or credit the account
Credit
300
Absolute maximum production activity of a manufacturing firm
Theoretical activity level - .
300
TMC / # of Units
Total Manufacturing Cost
300
The method utilized to assign costs to products or services
Cost Measurement
400
Uses actual costing , plus applies overhead using a predetermined rate to determine unit costs
Normal Costing
400
Normal Spoilage or Abnormal Spoilage:
Arises from the nature of the production process
Normal Spoilage
400
Follows costs from the point at which they are incurred to the point at which they are recognized as an expense on the income statement.
Cost Flow
400
Compute the predetermined overhead rate for a firm that has estimated overhead costs for the coming year at $900,000 and expected activity is 90,000 DLH
10 per DLH
900,000 / 90,000
400
Immaterial under or applied overhead is closed to this account
COGS