Becker BEC

Question 1

FIFO

Answer 1

FIFO (3 steps)

Beginning WIP x % to be compl
+ Units completed - beginning WIP
+Ending WIP x % completed
= equivalent units

Cost per eu
FIFO = current cost/equivalent units

Question 2

Weighted Average

Answer 2

Weighted Average (2 steps)

units completed
+ ending WIP x % completed
= equivalent units

Weighted average = Beg cost + cur cost/equivalent units

Question 3

Absorption vs Contribution Approach

Answer 3

Difference is Fixed Factory Overhead

Absorption approach - product cost
Contribution Approach - period cost (not GAAP)

Question 4

Absorption costing

Answer 4

Product Cost:
Direct Materials
direct labors
Variable manufacturing overhead
Fixed manufacturing overhead

Period:
Variable and fixed SG&A

Question 5

Variable (direct) Costing

Not GAAP

Answer 5

Product Costs:
Direct materials
Direct labor
Variable manufacturing overhead

Period costs:
Fixed manufacturing overhead
Variable SG&A

Question 6

Contribution ratio formula

Answer 6

Contribution margin ratio= contribution margin ➗ revenue

Question 7

Breakeven point in dollars

Answer 7

Break even point in dollars= total fixed costs ➗ contribution margin ratio

Question 8

VOH rate (spending) variance

Answer 8

VOH rate (spending) variance = actual hours x (actual rate - standard rate)

Question 9

VOH efficiency variance

Answer 9

VOH efficiency variance = standard rate x (actual hours - standard hours allowed for actual production volume)

Question 10

FOH budget (spending) variance

Answer 10

FOH volume variance = budgeted fixed overhead - standard fixed overhead cost allocated to production*

*based on actual production x standard rate