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WorksheetsExam 1 Review
Total questions: 25
Worksheet time: 1hrs 15mins
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
Is the hamster factory rent a variable, fixed, or mixed cost?
Variable
Fixed
Mixed
What are the strengths and weaknesses of the visual-fit method?
Easy
Not accurate
Very accurate
What is the cost estimation formula based off of this data using the high-low method
y = 2x + 300
y = 1x + 1000
What is the total mixed cost (y) based off the production estimate of 5,000 units (x)?
6,000
4,000
What are the strengths and weaknesses of a regression analysis?
Need software
Very accurate
Does not use all data points
What income statement format is this?
Traditional
Contribution
What income statement format is this?
Traditional
Contribution
Where should you start when trying to apply overhead costs?
Identifying the cost driver
Finding the predetermined overhead rate (POHR)
How much overhead will be applied to each product in Sep. assuming the company uses machine hours as the cost driver?
A = 4,000
B = 8,000
A = 7,000
B = 6,000
How much overhead will be applied to each product?
X = 150,000
Y = 400,000
X = 100,000
Y = 500,000
What is the total cost per product?
X = $156,500
Y = $407,200
X = 150,000
Y = 400,000
When do we use job-costing?
When we are producing unique products
When we are mass producing the same product
How much overhead applied will be in inventory (finished goods) and how much will go to COGS?
FG = 155,000
COGS = 65,000
FG = 100,000
COGS = 60,000
What adjustment would be made if the company chose to prorate the under/over applied overhead?
Increase WIP by 11,000, Increase FG by 5,500, Increase COGS by 33,500
Decrease WIP by 5,000, Increase FG by 10,000, Decrease COGS by 15,000
Calculate the COGS, close the under/over applied overhead directly to COGS
COGS = 857,800
COGS = 1,257,800
