Exam 3: Predetermined Overhead Rates, flexible Budgets, and Absorptionvariable Costing

In a normal cost system,factory overhead is assigned to an overhead control account and then allocated to products and services.

Plantwide overhead rates provide a more accurate computation of factory overhead than departmental overhead rates

If there is no "a" value in a linear cost equation,this is an indication that the cost is

Variable costing is commonly used for internal reporting.

Variable costing considers which of the following to be product costs?

Temporary profits that result when absorption costing is used and production exceeds sales are referred to as _________________________.

Expected capacity is a long-run measure of activity.

A credit to the Factory Overhead account represents actual overhead costs.

If actual overhead exceeds applied overhead,factory overhead is said to be overapplied.

When a relationship between one independent variable and one dependent variable is analyzed,the regression is referred to as ____________________.

What costs are treated as product costs under variable (direct)costing?

An item or event that has a cause-effect relationship with the incurrence of a variable cost is called a

A credit to the Factory Overhead account represents applied overhead costs.

A debit to the Factory Overhead account represents applied overhead costs.

What are the primary reasons for using a predetermined overhead rate?

Variable costing is commonly used for external reporting.

Consider the following three product costing alternatives: process costing,job order costing,and standard costing.Which of these can be used in conjunction with variable costing?

Under absorption costing,fixed manufacturing overhead could be found in all of the following except the

Awesome Athletics,Inc.has developed a new design to produce hurdles that are used in track and field competition.The company's hurdle design is innovative in that the hurdle yields when hit by a runner and its height is extraordinarily easy to adjust.Management estimates expected annual capacity to be 90,000 units; overhead is applied using expected annual capacity.The company's cost accountant predicts the following current year activities and related costs: Other than any possible under- or overapplied fixed overhead,management expects no variances from the previous manufacturing costs.Under- or overapplied fixed overhead is to be written off to Cost of Goods Sold. Required:

Austin Company The following information is available for Austin Company for its first year of operations: Refer to Austin Company.What was the total amount of Selling,General and Administrative expense incurred by Austin Company?