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

Farris Corporation produces a single product.The following is a cost structure applied to its first year of operations. During the first year,Farris Corporation manufactured 5,000 units and sold 3,800.There was no beginning or ending work-in-process inventory.

(Essay)

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Question 101

In a(n)____________________ cost system,factory overhead is assigned directly to products and services.

(Short Answer)

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Question 102

Profit under absorption costing may differ from profit determined under variable costing.How is this difference calculated?

(Multiple Choice)

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Question 103

Wilder Corporation wishes to develop a single predetermined overhead rate.The company's expected annual fixed overhead is $340,000 and its variable overhead cost per machine hour is $2.The company's relevant range is from 200,000 to 600,000 machine hours.Walton expects to operate at 425,000 machine hours for the coming year.The plant's theoretical capacity is 850,000.The predetermined overhead rate per machine hour should be

(Multiple Choice)

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Question 104

An income statement is prepared as an internal report.Under which of the following methods would the term contribution margin appear?

(Multiple Choice)

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Question 105

On the variable costing income statement,the difference between the "contribution margin" and "income before income taxes" is equal to

(Multiple Choice)

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Question 106

Jordan Corporation has developed the following flexible budget formula for monthly overhead: How much overhead should Jordan expect if the firm plans to produce 200,000 units?

(Multiple Choice)

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Question 107

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 absorption costing,the standard production cost per unit for the current year was

(Multiple Choice)

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Question 108

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

(Short Answer)

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Question 109

Drew Corporation is relocating its facilities.The company estimates that it will take three trucks to move office contents.If the per truck rental charge is $1,000 plus 25 cents per mile,what is the expected cost to move 800 miles?

(Multiple Choice)

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Question 110

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

(Multiple Choice)

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Question 111

Under absorption costing,if sales remain constant from period 1 to period 2,the company will report a larger income in period 2 when

(Multiple Choice)

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Question 112

If underapplied or overapplied factory overhead is material,it is prorated among ______,,and _.

(Essay)

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Question 113

Which of the following is an argument against the use of direct (variable)costing?

(Multiple Choice)

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Question 114

Overapplied overhead will result if

(Multiple Choice)

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Question 115

The following information regarding fixed production costs from a manufacturing firm is available for the current year: Which of the following statements is not true?

(Multiple Choice)

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Question 116

Absorption costing is commonly used for external reporting.

(True/False)

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Question 117

The slope of a regression line is determined by dividing the change in activity level by the change in total cost.

(True/False)

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Question 118

The Internal Revenue Service allows the use of both variable and absorption costing.

(True/False)

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Question 119

Anderson Corporation Anderson Corporation has the following standard costs associated with the manufacture and sale of one of its products: Refer to Anderson Corporation.Based on variable costing,the income before income taxes for the year was

(Multiple Choice)

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Question 120

Showing 101 - 120 of 199

Farris Corporation produces a single product.The following is a cost structure applied to its first year of operations. During the first year,Farris Corporation manufactured 5,000 units and sold 3,800.There was no beginning or ending work-in-process inventory.

In a(n)____________________ cost system,factory overhead is assigned directly to products and services.

Profit under absorption costing may differ from profit determined under variable costing.How is this difference calculated?

An income statement is prepared as an internal report.Under which of the following methods would the term contribution margin appear?

On the variable costing income statement,the difference between the "contribution margin" and "income before income taxes" is equal to

Jordan Corporation has developed the following flexible budget formula for monthly overhead: How much overhead should Jordan expect if the firm plans to produce 200,000 units?

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 absorption costing,the standard production cost per unit for the current year was

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

Drew Corporation is relocating its facilities.The company estimates that it will take three trucks to move office contents.If the per truck rental charge is $1,000 plus 25 cents per mile,what is the expected cost to move 800 miles?

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

Under absorption costing,if sales remain constant from period 1 to period 2,the company will report a larger income in period 2 when

If underapplied or overapplied factory overhead is material,it is prorated among ______,,and _.

Which of the following is an argument against the use of direct (variable)costing?

Overapplied overhead will result if

The following information regarding fixed production costs from a manufacturing firm is available for the current year: Which of the following statements is not true?

Absorption costing is commonly used for external reporting.

The slope of a regression line is determined by dividing the change in activity level by the change in total cost.

The Internal Revenue Service allows the use of both variable and absorption costing.

Anderson Corporation Anderson Corporation has the following standard costs associated with the manufacture and sale of one of its products: Refer to Anderson Corporation.Based on variable costing,the income before income taxes for the year was

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

Farris Corporation produces a single product.The following is a cost structure applied to its first year of operations. During the first year,Farris Corporation manufactured 5,000 units and sold 3,800.There was no beginning or ending work-in-process inventory.

In a(n)____________________ cost system,factory overhead is assigned directly to products and services.

Profit under absorption costing may differ from profit determined under variable costing.How is this difference calculated?

An income statement is prepared as an internal report.Under which of the following methods would the term contribution margin appear?

On the variable costing income statement,the difference between the "contribution margin" and "income before income taxes" is equal to

Jordan Corporation has developed the following flexible budget formula for monthly overhead: How much overhead should Jordan expect if the firm plans to produce 200,000 units?

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 absorption costing,the standard production cost per unit for the current year was

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

Drew Corporation is relocating its facilities.The company estimates that it will take three trucks to move office contents.If the per truck rental charge is $1,000 plus 25 cents per mile,what is the expected cost to move 800 miles?

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

Under absorption costing,if sales remain constant from period 1 to period 2,the company will report a larger income in period 2 when

If underapplied or overapplied factory overhead is material,it is prorated among ________________________________________,________________________________________,and ___________________________________.

Which of the following is an argument against the use of direct (variable)costing?

Overapplied overhead will result if

The following information regarding fixed production costs from a manufacturing firm is available for the current year: Which of the following statements is not true?

Absorption costing is commonly used for external reporting.

The slope of a regression line is determined by dividing the change in activity level by the change in total cost.

The Internal Revenue Service allows the use of both variable and absorption costing.

Anderson Corporation Anderson Corporation has the following standard costs associated with the manufacture and sale of one of its products: Refer to Anderson Corporation.Based on variable costing,the income before income taxes for the year was

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

If underapplied or overapplied factory overhead is material,it is prorated among ______,,and _.