Cost Accounting

Question 1

predetermined OH rate aka

Answer 1

standard fixed application rate (SFR)

the amount of OH to apply (usually based on DL)

Question 2

job order costing

Answer 2

applied cost to group of unique products

customer specified products

expensive
heterogeneous
-cost based per JOB

Question 3

process costing

Answer 3

costing to continuous process of production.

same, similar goods
inexpensive
mass produced
homogeneous
-cost per PERIOD

• weighted avg method
• FIFO

Question 4

Weighted average and first in, first out (FIFO) equivalent units would be the same in a period when which of the following occurs

Answer 4

No beginning inventory exists

Question 5

variable overhead spending variance is the difference between the standard variable overhead rate and the actual variable overhead rate, multiplied by actual hours.

Answer 5

(Standard variable overhead rate – Actual variable overhead rate) x Actual hours

Question 6

applied OH

Answer 6

Applied O/H = Predetermined O/H rate X Actual production hours

Question 7

Under FIFO

Answer 7

UNITS =
1. the work required to complete units in beginning inventory,
+
2. units started and completed,
+
3. and the work completed on ending inventory.
units started and completed = completed - beg

COST =
1. cost incurred during period

Question 8

Weighted AVG method

Answer 8

UNITS=
1. completed units
+
2. end * % completed

COST=
1. cost beginning
+
2. cost incurred