Accounting Exam 2

Question 1

Predetermined Overhead Rate=

Answer 1

Estimated total manufacturing OH cost/estimated activity

Question 2

average cost per unit =

Answer 2

Costs allocated to a job/ # of units in the job

Question 3

Total job cost=

Answer 3

DL+DM+OH

Question 4

Contribution margin=

Answer 4

Sales - Variable costs

Question 5

OH applied=

Answer 5

PDOHR x amount of allocation

Question 6

Profit=

Answer 6

(CM ratio x sales) - fixed expenses

Question 7

Change in profit=

Answer 7

CM ratio x change in sales - change in fixed expenses

Question 8

OH applied < OH actual =

Answer 8

Underapplied OH
COGS increases OI decreases

Question 9

OH applied > OH actual=

Answer 9

Overapplied OH
COGS decreases OI increases

Question 10

Unadjusted cost of goods sold=

Answer 10

Beginning finished goods inventory + cost of goods manufactured- ending finished goods inventory

Question 11

Overhead applied to a particular job=

Answer 11

Predetermined OH rate x actual direct - labor hours worked on the job

Question 12

Y= a + bx

Answer 12

Y= the estimated total OH cost
a= the estimated total fixed OH cost
b= the estimated variable OH cost per unit of the allocation base
x= the estimated total amount of the allocation base

Question 13

In a job costing system, a manufacturing firm typically uses a predetermined rate to estimate the ——— allocated to a job

Answer 13

Manufacturing overhead costs