Question 1

Another name for variable costing is

Accepted Answer

A) full costing. 
B) direct costing. 
C) standard costing. 
D) adjustable costing. 
A) full costing. 
B) direct costing. 
C) standard costing. 
D) adjustable costing.

Question 2

If overapplied factory overhead is immaterial,the account is closed by a credit to Cost of Goods Sold.

Accepted Answer

A) True 
 B)False

Question 3

If underapplied or overapplied factory overhead is immaterial,it is charged to ______________________________.

Accepted Answer

The answer of If underapplied or overapplied factory overhead is...

Question 4

O'Brien Corporation applies overhead at the rate of 70 percent of direct labor.O'Brien incurred $450,000 of direct labor during the current year.O'Brien incurred actual overhead of $367,000.
(a)Compute the amount of under- or overapplied overhead for O'Brien Corporation for the current year
(b)Prepare the necessary journal entry to dispose of the under- or overapplied overhead (assuming that the amount is immaterial).

Accepted Answer

The answer of O'Brien Corporation applies overhead at the rate...

Question 5

Anderson Corporation Anderson Corporation has the following standard costs associated with the manufacture and sale of one of its products:
  Refer to Anderson Corporation.Under variable costing,the standard production cost per unit for the current year was

Accepted Answer

A) $11.30. 
B) $7.30. 
C) $7.55. 
D) $11.55. 
A) $11.30. 
B) $7.30. 
C) $7.55. 
D) $11.55.

Question 6

Consider the regression equation y = a + bX.The portion of the equation that represents the variable rate is __________.

Accepted Answer

The answer of Consider the regression equation y = a...

Question 7

If underapplied overhead is considered to beimmaterial,it is closed to which of the following accounts?

Accepted Answer

A) yes yes yes 
B) no yes yes 
C) yes no no 
D) no no yes 
A) yes yes yes 
B) no yes yes 
C) yes no no 
D) no no yes

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Absorption costing differs from variable costing in all of the following except

Accepted Answer

A) treatment of fixed manufacturing overhead. 
B) treatment of variable production costs. 
C) acceptability for external reporting. 
D) arrangement of the income statement. 
A) treatment of fixed manufacturing overhead. 
B) treatment of variable production costs. 
C) acceptability for external reporting. 
D) arrangement of the income statement.

Question 10

Austin Company The following information is available for Austin Company for its first year of operations:
  Refer to Austin Company.If Austin Company were using variable costing,what would it show as the value of ending inventory?

Accepted Answer

A) $120,000 
B) $64,500 
C) $27,000 
D) $24,000 
A) $120,000 
B) $64,500 
C) $27,000 
D) $24,000

Question 11

If a company used two overhead accounts (actual overhead and applied overhead),the one that would receive the most debits would be

Accepted Answer

A) actual overhead. 
B) applied overhead. 
C) both would receive an equal number of debits. 
D) impossible to determine without additional information. 
A) actual overhead. 
B) applied overhead. 
C) both would receive an equal number of debits. 
D) impossible to determine without additional information.

Question 12

Why is absorption costing not used for CVP analysis?

Accepted Answer

Absorption costing is not used in break-

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The measure of production that considers historical and estimated future production levels and cyclical fluctuations is referred to as:

Accepted Answer

A) theoretical capacity 
B) practical capacity 
C) normal capacity 
D) expected capacity 
A) theoretical capacity 
B) practical capacity 
C) normal capacity 
D) expected capacity

Question 15

Why do managers frequently prefer variable costing to absorption costing for internal use?

Accepted Answer

Managers may prefer variable costing bec

Question 16

Sheets Corporation The following information was extracted from the first year absorption-based accounting records of Sheets Corporation
  Refer to Sheets Corporation.If Sheets Corporation had used variable costing in its first year of operations,how much income (loss)before income taxes would it have reported?

Accepted Answer

A) ($6,000) 
B) $54,000 
C) $26,000 
D) $ 2,000 
A) ($6,000) 
B) $54,000 
C) $26,000 
D) $ 2,000

Question 17

A ______________________________ is a planning document that presents expected variable and fixed overhead costs at different activity levels.

Accepted Answer

The answer of A ______________________________ is a planning document that...

Question 18

In the application of "variable costing" as a cost-allocation process in manufacturing,

Accepted Answer

A) variable direct costs are treated as period costs. 
B) nonvariable indirect manufacturing costs are treated as product costs. 
C) variable indirect manufacturing costs are treated as product costs. 
D) nonvariable direct costs are treated as product costs. 
A) variable direct costs are treated as period costs. 
B) nonvariable indirect manufacturing costs are treated as product costs. 
C) variable indirect manufacturing costs are treated as product costs. 
D) nonvariable direct costs are treated as product costs.

Question 19

Letterman Corporation has the following data for the current year:
   What is the amount of under- or overapplied overhead? Prepare the necessary journal entry to dispose of under- or overapplied overhead.

Accepted Answer

The answer of Letterman Corporation has the following data for...

Question 20

Austin Company The following information is available for Austin Company for its first year of operations:
  Refer to Austin Company.If Austin Company had used variable costing,what amount of income before income taxes would it have reported?

Accepted Answer

A) $30,000 
B) ($7,500) 
C) $67,500 
D) cannot be determined from the information given 
A) $30,000 
B) ($7,500) 
C) $67,500 
D) cannot be determined from the information given

Another name for variable costing is

If overapplied factory overhead is immaterial,the account is closed by a credit to Cost of Goods Sold.

If underapplied or overapplied factory overhead is immaterial,it is charged to ______________________________.

Anderson Corporation Anderson Corporation has the following standard costs associated with the manufacture and sale of one of its products: Refer to Anderson Corporation.Under variable costing,the standard production cost per unit for the current year was

Consider the regression equation y = a + bX.The portion of the equation that represents the variable rate is __________.

If underapplied overhead is considered to beimmaterial,it is closed to which of the following accounts?

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

Absorption costing differs from variable costing in all of the following except

Austin Company The following information is available for Austin Company for its first year of operations: Refer to Austin Company.If Austin Company were using variable costing,what would it show as the value of ending inventory?

If a company used two overhead accounts (actual overhead and applied overhead),the one that would receive the most debits would be

Why is absorption costing not used for CVP analysis?

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

The measure of production that considers historical and estimated future production levels and cyclical fluctuations is referred to as:

Why do managers frequently prefer variable costing to absorption costing for internal use?

A ______________________________ is a planning document that presents expected variable and fixed overhead costs at different activity levels.

In the application of "variable costing" as a cost-allocation process in manufacturing,

Letterman Corporation has the following data for the current year: What is the amount of under- or overapplied overhead? Prepare the necessary journal entry to dispose of under- or overapplied overhead.

Austin Company The following information is available for Austin Company for its first year of operations: Refer to Austin Company.If Austin Company had used variable costing,what amount of income before income taxes would it have reported?

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, support Department Allocations, and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

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

Another name for variable costing is

If overapplied factory overhead is immaterial,the account is closed by a credit to Cost of Goods Sold.

If underapplied or overapplied factory overhead is immaterial,it is charged to ______________________________.

Anderson Corporation Anderson Corporation has the following standard costs associated with the manufacture and sale of one of its products: Refer to Anderson Corporation.Under variable costing,the standard production cost per unit for the current year was

Consider the regression equation y = a + bX.The portion of the equation that represents the variable rate is __________.

If underapplied overhead is considered to beimmaterial,it is closed to which of the following accounts?

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

Absorption costing differs from variable costing in all of the following except

Austin Company The following information is available for Austin Company for its first year of operations: Refer to Austin Company.If Austin Company were using variable costing,what would it show as the value of ending inventory?

If a company used two overhead accounts (actual overhead and applied overhead),the one that would receive the most debits would be

Why is absorption costing not used for CVP analysis?

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

The measure of production that considers historical and estimated future production levels and cyclical fluctuations is referred to as:

Why do managers frequently prefer variable costing to absorption costing for internal use?

A ______________________________ is a planning document that presents expected variable and fixed overhead costs at different activity levels.

In the application of "variable costing" as a cost-allocation process in manufacturing,

Letterman Corporation has the following data for the current year: What is the amount of under- or overapplied overhead? Prepare the necessary journal entry to dispose of under- or overapplied overhead.

Austin Company The following information is available for Austin Company for its first year of operations: Refer to Austin Company.If Austin Company had used variable costing,what amount of income before income taxes would it have reported?

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, support Department Allocations, and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters