Exam 1 Review

What are some differences between Financial and Managerial accounting?

• Relevance

• Time

• Required

• Amount of usage

What are the three types of product costs?

• Direct materials

• Direct Labor

• Manufacturing overhead

• Selling and admin costs

What are period costs?

• A cost that is not directly related to the manufacturing facility

• A cost that is expensed in the period they are incurred

• Costs that ARE directly related to manufacturing the product/facility

What is the difference between direct and indirect costs?

• Direct costs can be easily traced to the product, while indirect cannot

• Direct costs are allocated to the products, while indirect costs are traced

How do you calculate the overtime premium?

• Base wage rate x overtime wage rate

• Overtime wage rate - base wage rate

What is the overtime premium?

• 30

• 10

What is the total cost of direct labor?

• $800

• $600

What is the total cost of manufacturing overhead?

• $500

• $700

Is the hamster wheel a variable cost, fixed cost, or mixed cost?

• Variable

• Fixed

• Mixed

Is the hamster food a variable cost, fixed cost, or mixed cost?

• Variable

• Fixed

• Mixed