Exam 4

Question 1

Calculate the predetermined overhead rate

Answer 1

Estimate of factory overhead / Estimate of the activity base

Question 2

Apply overhead to specific jobs

Answer 2

Actual units of the activity base on job * predetermined overhead rate

Question 3

Determine the total cost of a job

Answer 3

Direct materials used on the job

Direct labor used on the job

Factory overhead applied to job

If a job includes producing multiple units of an item, the cost of an item is calculated by taking (total cost of the job and dividing by total units produced)

Question 4

Determine the total factory overhead applied for a year and under- or over applied overhead

Answer 4

Factory Overhead
Actual - Applied
Balance - Balance
Underapplied-Overapplied

Question 5

Breakeven point in units

Answer 5

Fixed costs / contribution margin per unit

(sales price per unit – variable cost per unit)

Calculate the change in breakeven point if selling price per unit changes

Question 6

Breakeven point in dollars

Answer 6

Fixed costs / contribution margin ratio

(contribution margin per unit / sales price per
unit)

Contribution margin dollars / sales dollars

Question 7

Units needed to sell to get a desired profit

Answer 7

(Fixed cost + desired profit)/contribution margin per unit

Question 8

Calculate contribution margin

Answer 8

sales - variable cost

Question 9

calculate contribution margin ratio

Answer 9

sales - variable costs =
contribution margin

contribution margin / sales