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Chapter 3
Chapter 6
Chapter 7
Chapter 8
Analysis Qs
100
_____ is the difference between total revenue and total variable costs.
What is total contribution margin?
100
_____ is used to allocate indirect cost.
What is predetermined overhead rate?
100
_____ is an accounting system that traces costs to individual units or to specific jobs, contracts, or batches of goods.
What is job costing?
100
_____ are the sum of direct labor and manufacturing overhead.
What are conversion costs?
100
Assume that the number of units transferred out of a department is unknown. What is the formula to solve for units transferred out using the basic cost flow model?
What is BB+TI-EB=TO?
200
_____ is the difference between revenues per unit (price) and variable cost per unit.
What is unit contribution margin?
200
_____ is equal to estimated overhead divided by the estimated allocation base.
What is predetermine overhead rate formula?
200
_____ is the excess of actual overhead costs incurred over applied overhead costs
What is Underapplied Overhead?
200
_____ are the number of complete physical units to which units in inventories are equal in terms of work done to date.
What are equivalent units?
200
The results of FIFO and Weighted Average are the same when there is _____.
What is no beginning balance?
300
_____ is equal to Fixed Costs / Contribution Margin Ratio.
What is the break-even point (sales dollars)?
300
Job costing, process costing, and operations costing.
What are the three basic types of product costing systems?
300
_____ is the excess of applied overhead costs incurred over actual overhead during a period.
What is Overapplied Overhead?
300
_____ is the inventory method that for product costing purposes combines costs and equivalent units of a period with the costs and the equivalent units in beginning inventory.
What is weighted-average process costing?
300
To compute equivalent units _____ must be reasonably estimated.
What is the percentage of completion?
400
_____ is equal to sales (in units) minus break-even sales volume.
What is the Margin of Safety?
400
_____ is a unit of product that is easily distinguishable from other units.
What is a Job?
400
_____ is a complex job that often takes months or years to complete and requires the work of many different departments, divisions, or subcontractors.
What is a project?
400
_____ is an inventory method whereby the first goods received are the first ones charged out when sold or transferred.
What is first-in, first-out (FIFO) process costing?
400
The _____ method makes no distinction between beginning inventory and current period costs.
What is weighted-average costing?
500
Hale & Hearty Inc. currently sells 10,000 treadmills for $520 each. Variable costs relating to this product are $320 per unit and fixed costs total $1,200,000. What is the company's margin of safety (in units)?
What is 4,000 units? 520 - 320 = 200; 1,200,000 / 200 = 6,000; 10,000 - 6,000 = 4,000
500
The Schuler Insurance Company processed 60,000 claims in March. It takes an average of 6 hours to process each claim. The company incurred $240,000 of labor and $840,000 of overhead costs during March. What was the cost to process each claim?
What is $18.00? 240,000 + 840,000 = 1,080,000; 1,080,000 / 60,000 = $18.00
500
Montage Company uses direct labor cost to apply overhead to work-in-process. The estimated overhead for the current year is $468,000 and the company expects to use 90,000 hours of direct labor. The average labor rate is $10.40 per hour. What is the predetermined rate that will be used to apply overhead?
What is 50%? 468,000 / (90,000 x 10.4) = 0.50
500
_____ is a hybrid costing system used in manufacturing goods that have some common characteristics and some individual characteristics.
What is operation costing?
500
ABC Company has materials of $46,000 in beginning WIP and current materials costs of $92,000. It has conversion costs of $78,000 in beginning WIP and current conversion costs of $124,000. If the equivalent units of production under weighted-average costing were 40,000 and 50,000 for materials and conversion costs, respectively, what are the costs per equivalent unit?
What is $3.45 and $4.04?