Cost Accounting

Question 1

Separable Costs

Answer 1

Costs incurred after the mutual manufacturing process is complete. The costs necessary to prepare a joint product to be sold.

Question 2

Split-off Point

Answer 2

The point at the conclusion of the joint manufacturing process when individual joint products can be identified.

Question 3

Direct Material Usage Variance

Answer 3

Standard Cost x (Standard Quantity - Actual Quantity)

Question 4

Material Price Variance

Answer 4

Actual Quantity x ( Standard Price - Actual Price)

Question 5

Overhead Volume Variance

Answer 5

Difference between budgeted amount of fixed overhead and overhead applied

Question 6

Conversion Costs

Answer 6

Direct Labor + Manufacturing Overhead