Cost Accounting Term 2 Week 2 AC MC

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Evaluate responses using AI:

OFF

Under absorption costing, product costs comprise

• DM, DL, VFOH, FFOH

• DM, DL,VFOH

• DM,DL

• DL,FFOH

Under marginal costing, product costs comprises

• DM,DL,VFOH,FFOH

• DM,DL

• DM,DL,VFOH

• DM,VFOH

In a period whereby the number of units of product produced is the same as the number of units sold,

• Net Income under Marginal Costing & Absorption Costing is the same

• Net Income under Marginal Costing is higher than Absorption Costing

• Net Income under Marginal Costing is lower than Absorption Costing

• Depends

In a period whereby the number of units of product produced is higher than the number of units sold,

• Net Income under Marginal Costing & Absorption Costing is the same

• Net Income under Marginal Costing is higher than Absorption Costing

• Net Income under Marginal Costing is lower than Absorption Costing

• Depends

The BCD Company manufactures a single product. The costs per unit are - variable manufacturing costs (DM,DL,VOH) $8, fixed manufacturing (FOH) $6, and variable selling and administrative costs $2. The selling price is $20 per unit. Actual and budgeted fixed overhead is $900,000 for the year. Information about BCD's production activity for the year is provided below:

Sales 125,000 units

Production 150,000 units

Opening Inventory 5,000 units

What is the value of COGS under absorption costing?

• $1,750,000

• $1,000,000

• $1,250,000

• $2,000,000

The BCD Company manufactures a single product. The costs per unit are - variable manufacturing costs (DM,DL,VOH) $8, fixed manufacturing (FOH) $6, and variable selling and administrative costs $2. The selling price is $20 per unit. Actual and budgeted fixed overhead is $900,000 for the year. Information about BCD's production activity for the year is provided below:

Sales 125,000 units

Production 150,000 units

Opening Inventory 5,000 units

What is the value of under/over-applied FOH under absorption costing?

• $150,000

• $0

• $870,000

• $900,000

The BCD Company manufactures a single product. The costs per unit are - variable manufacturing costs (DM,DL,VOH) $8, fixed manufacturing (FOH) $6, and variable selling and administrative costs $2. The selling price is $20 per unit. Actual and budgeted fixed overhead is $900,000 for the year. Information about BCD's production activity for the year is provided below:

Sales 125,000 units

Production 150,000 units

Opening Inventory 5,000 units

What is the net profit under absorption costing?

• $1,250,000

• $350,000

• $500,000

• Others

The BCD Company manufactures a single product. The costs per unit are - variable manufacturing costs (DM,DL,VOH) $8, fixed manufacturing (FOH) $6, and variable selling and administrative costs $2. The selling price is $20 per unit. Actual and budgeted fixed overhead is $900,000 for the year. Information about BCD's production activity for the year is provided below:

Sales 125,000 units

Production 150,000 units

Opening Inventory 5,000 units

What is the value of COGS under Marginal costing?

• $1,750,000

• $1,000,000

• $1,200,000

• $2,500,000

The BCD Company manufactures a single product. The costs per unit are - variable manufacturing costs (DM,DL,VOH) $8, fixed manufacturing (FOH) $6, and variable selling and administrative costs $2. The selling price is $20 per unit. Actual and budgeted fixed overhead is $900,000 for the year. Information about BCD's production activity for the year is provided below:

Sales 125,000 units

Production 150,000 units

Opening Inventory 5,000 units

What is the Contribution Margin under absorption costing?

• $1,750,000

• $1,250,000

• $1,500,000

• $350,000