exam 1 accounting

Assume (1) a company's plantwide predetermined overhead rate is $15.00 per direct labor-hour, and (2) its job cost sheet for Job X shows that this job used 18 direct labor-hours and incurred direct materials and direct labor charges of $500 and $360, respectively. What is the total cost of Job X?

$1,130.00

Assume the Car Company sold 250 cars during the past 3 months. Total sales were $5,000,000 and total variable expenses were $1,500,000. Determine the contribution margin per unit.

$14,000

Assume the following: Purchases of raw materials$38,000 Indirect materials used in production$5,400 Beginning raw materials inventory$10,000 Ending raw materials inventory$14,000 What is the direct materials used in production? $42,600 $28,600 $60,600 $36,600

$28,600

Assume that a company has sales of $525,000 for the year. During the year, the company incurred variable expenses of $200,000, and fixed expenses of $275,000. Determine the contribution margin.

$325,000

Assume (1) a company's plantwide predetermined overhead rate is $13.00 per direct labor-hour, and (2) its job cost sheet for Job X shows that this job used 18 direct labor-hours and incurred direct materials and direct labor charges of $500 and $360, respectively. If Job X contains 30 units, then its unit product cost is closest to:

$36.47.

The Car Company estimates that it will require 200,000 direct labor hours to produce the total amount of cars demanded. The company estimates total fixed manufacturing overhead of $100,000, and variable manufacturing overhead of $3.75 per direct labor hour. Compute the predetermined overhead rate.

$4.25

Assume (1) a predetermined overhead rate of $8.00 per machine-hour, (2) actual machine-hours worked during the period of 54,000 hours, and (3) estimated machine-hours to be worked during the coming period of 55,000 hours. The amount of overhead applied to production during the period is closest to: $440,000. $445,000. $435,000. $432,000.

$432,000.

Assume (1) estimated fixed manufacturing overhead for the coming period of $205,000, (2) estimated variable manufacturing overhead of $2.00 per direct labor hour, (3) actual manufacturing overhead for the period of $320,000, (4) actual direct labor-hours worked of 54,000 hours, and (5) estimated direct labor-hours to be worked in the coming period of 55,000 hours. The predetermined plantwide overhead rate for the period is closest to: $5.73. $5.93. $5.80. $5.82.

$5.73

The car company had actual manufacturing overhead costs of $1,000,000 and a predetermined overhead rate of $3.50 per machine hour. The Car Company used 300,000 machine hours during the year. The Car Company manufactured overhead is:

$50,000 overapplied

Assume the following from a schedule of cost of goods manufactured: Purchases of raw materials$38,000 Indirect materials used in production$7,000 Beginning work in process inventory$10,000 Ending work in process inventory$14,000 Total manufacturing costs added to production$80,000 Actual manufacturing overhead costs incurred$34,000 Manufacturing overhead applied to production$32,000 What is the cost of goods manufactured?

$76,000

Assume (1) estimated total manufacturing overhead cost = $100,000, (2) estimated total amount of the allocation base = 20,000 direct labor hours, (3) the total direct labor hours actually worked during the period = 22,200, and (4) the total manufacturing overhead actually incurred during the period is $103,000.What is the total amount of underapplied or overapplied overhead for the period?

$8,000 over applied

Assume (1) estimated total manufacturing overhead cost = $100,000, (2) estimated total amount of the allocation base = 20,000 direct labor hours, (3) the total direct labor hours actually worked during the period = 22,200, and (4) the total manufacturing overhead actually incurred during the period is $103,000.What is the total amount of underapplied or overapplied overhead for the period?

$8,000 overapplied

If sales are $100,000, fixed expenses are $31,500, and the contribution margin is $40,000, then the net operating income must be: $71,500. $8,500. $60,000. $31,500.

$8,500

Assume (1) actual machine-hours worked during the period of 54,000 hours, (2) estimated machine-hours to be worked during the coming period of 55,000 hours, and (3) manufacturing overhead applied to production during the period of $432,000. The predetermined overhead rate is closest to: $7.00. $8.15. $7.85. $8.00.

$8.00

If the conversion costs are $70,000, manufacturing overhead costs are $20,500, and direct material costs are $35,000, then the prime costs must be: $84,500. $35,000. $49,500. $14,500.

$84,500

Assume a company had sales of $200,000 and variable expenses of $50,000. The company also incurred fixed expenses of $100,000. Determine the contribution margin ratio.

.75

If we have a contribution margin of 60%, sales are $250,000, and fixed expenses are $50,000, what is the contribution margin?

150,000

what is conversion cost?

Conversion costs include direct labor and manufacturing overhead because these costs are incurred to convert direct materials into finished products.

Which of the following is not one of the three inventory accounts reported on the balance sheet? Work in process Finished goods Raw materials Cost of goods sold

Cost of goods sold

does manufacturing cost include direct materials and direct labor?

NO only indirect

Assume actual overhead applied is greater than the applied overhead cost. What could we determine from this statement?

Overhead was underapplied

what is period cost

Period costs are all the costs that are not product costs; that is, period costs include all selling and administrative expenses.

what is a prime cost?

Prime cost is the sum of direct materials cost and direct labor cost.

Which of the following statements is false? Prime costs include manufacturing overhead. Conversion costs include manufacturing overhead. Prime costs include direct labor. Conversion costs include direct labor.

Prime costs include manufacturing overhead.

what is product cost

Product costs (also called inventoriable costs) include all costs that are involved in acquiring or making a product.

The Car Company purchases $12,000 worth of raw materials on account. Record the journal entry.

Raw Materials 12,000 Accounts Payable 12,000

Which of the following statements is false? Selling costs can be either variable or fixed costs. Selling costs are included in a contribution format income statement. Selling costs can be either direct or indirect costs. Selling costs are included in manufacturing overhead.

Selling costs are included in manufacturing overhead.

Which of the following statements is false when considering cost behavior within the relevant range? A variable cost varies, in total, in direct proportion to changes in the level of activity. The average fixed cost per unit increases as the level of activity increases. A variable cost is constant if expressed on a per unit basis. A fixed cost remains constant, in total, regardless of changes in the level of activity.

The average fixed cost per unit increases as the level of activity increases.

During the month, the Car Company had employee time tickets of $55,000 in direct labor and $20,000 for indirect labor. Record the journal entry.

Work in Process 55,000 Manufacturing Overhead 20,000 Salaries and Wages Payable 75,000

What is a variable cost?

a cost that changes in total with the level of activity, but remains constant per unit

What is a fixed cost?

a cost that does not change, no matter how much of a good is produced. remains constant, in total, regardless of changes in the level of activity.

how do you calculate over/ under applied?

actual manufacturing overhead incurred - overhead applied to production

what does manufacturing overhead include?

all manufacturing costs (such as indirect materials)

Sales ‒ variable expenses =?

contribution margin

How do you find net operating income?

contribution margin - fixed expenses

Unit sales to break-even can be calculated by dividing fixed expenses by:

contribution margin per unit

how do you calculate direct labor cost?

conversion cost + manufacturing overhead

What is allocation base?

direct labor hours, direct labor dollars, machine hours,

how do you find TOTAL JOB COST

direct materials + direct labor + materials overhead applied

how do you find prime cost?

direct materials + direct labor cost

how do you find predetermined overhead rate

estimated total fixed manufacturing cost + (estimated variable manufacturing overhead cost x estimated total amount of the allocation) /estimated total amount of the allocation

A predetermined overhead rate includes: a. estimated total manufacturing overhead cost in the numerator. b. only the fixed portion of the estimated manufacturing overhead cost in the numerator. c. estimated total manufacturing overhead cost in the denominator. d. only the variable portion of the estimated manufacturing overhead cost in the numerator.

estimated total manufacturing overhead cost in the numerator.

Which of the following is not a period cost? Advertising expense Shipping expense Indirect materials Sales commissions

indirect materials

The process of assigning overhead cost to jobs is called:

overhead application

how do you find applied overhead?

predetermined overhead rate x actual direct labor hours

Which of the following is not a product cost? Variable manufacturing overhead Sales commissions Direct labor Direct materials

sales commissions

how do you find the UNITS PRODUCT COST?

total cost of job / number of units in job

The break-even-point is the level of sales where the profit is equal to:

zero