Mini-Mid Exam 2 Review

What is the equation for the Predetermined Overhead Rate (POH)?

• Estimated Annual Overhead/Estimated Use of Cost Driver per Activity

• Estimated Annual Overhead/Estimated Annual Operating Activity

• Estimated Overhead per Activity/Estimated Annual Operating Activity

• Estimated Overhead per Activity/Estimated Use of Cost Driver per Activity

What is the equation for applied overhead (using Job Order Costing)?

• Applied Overhead = AB OH x Actual Operating Activity

• Applied Overhead = POH x Actual Use of Cost Driver

• Applied Overhead = POH x Actual Operating Activity

• Applied Overhead = AB OH x Actual Use of Cost Driver

What is the equation for the Activity-Based Overhead Rate (AB OH)?

• Estimated Annual Overhead/Estimated Use of Cost Driver per Activity

• Estimated Annual Overhead/Estimated Annual Operating Activity

• Estimated Overhead per Activity/Estimated Annual Operating Activity

• Estimated Overhead per Activity/Estimated Use of Cost Driver per Activity

What is the equation for applied overhead (using Activity-Based Costing)?

• Applied Overhead = AB OH x Actual Operating Activity

• Applied Overhead = POH x Actual Use of Cost Driver

• Applied Overhead = POH x Actual Operating Activity

• Applied Overhead = AB OH x Actual Use of Cost Driver

Tags

CCSS.5.NBT.A.2

What is the equation for Gross Profit?

• GP = Revenues + COGS

• GP = Revenues - COGS

• GP = Revenues - Expenses

• GP = Revenues - COGM

Tags

CCSS.8.EE.C.7B

What is the equation for Total Manufacturing Costs?

• TMC = Beg. FG + COGM - End. FG

• TMC = DM - DL - MOH

• TMC = Beg. WIP + COGM - End. WIP

• TMC = DM + DL + MOH

Tags

CCSS.8.EE.C.7B

Apply overhead given that POH is 0.26, actual labor hours is 70 hours, and estimated labor hours is 80 hours.

• 269.23

• 18.20

• 20.80

• 307.69

Tags

CCSS.7.RP.A.3

Find Gross Profit given that revenues are 53,000, cost of goods sold is 12,500, and period expenses are 15,000.

• $38,000

• $40,500

• $25,500

• $15,000

Tags

CCSS.7.RP.A.3

Find POH given that estimated machine hours are 750,000 and estimated overhead is 300,000.

• 0.25

• 0.40

• 1.40

• 2.50

In which situation would we use Job Order Costing?

• Producing similar products

• Producing homogeneous products

• Producing potato chips

• Producing unique products