C253 Advanced Managerial Accounting Questions & Answers 100% Correct!

Material Overhead Rate (Labor Hours) - ANSWERSEstimated Overhead/Estimated Labor Hours Cost Per Part - ANSWERS(Direct Materials + Direct Labor + (overhead rate * amount of overhead))/units COGS - ANSWERS(Beg. Materials+Purchased Materials+End Materials)+Direct Labor+(Overhead for Labor)+(Beg work in process-End work in process) Predetermined Overhead Rate - ANSWERSEstimated total manufacturing overhead/Estimated total amount of allocation base Manufacturing Overhead Applied - ANSWERSPredetermined Overhead Rate x Actual amount of allocation base Total Manufacturing Cost - ANSWERSDirect Materials + Direct Labor + Overhead COGS Manufactured - ANSWERSDirect Materials+Direct Labor+Manufacturing Overhead Applied+Beg Work in Process-End Work in Process What industry uses job order costing - ANSWERSLegal Services Adjusted COGS - ANSWERSUnadjusted COGS-under/overapplied overhead What type of business is process costing? - ANSWERSFlour Manufacturer What are absorption costing product costs? - ANSWERSMaterials, Labor, Variable Manufacturing Overhead and Fixed Manufacturing Overhead (No selling and general admin) What are variable costing product costs? - ANSWERSMaterials, Labor and Variable Manufacturing Overhead (no fixed costs) Absorption Cost - ANSWERS(((Material+Labor+Variable Manufacturing Overhead)*Units Produced)+Fixed Costs)/Units Produced Net Income - ANSWERSSales Revenue - Expense (Revenue - (Absorption Cost*Units Sold) - (Variable SG&A*Units Sold)-Fixed SG&A Fixed Manufacturing Overhead Per Unit - ANSWERS(COGS-Variable Manufacturing)/Units Sold How do variable and absorption costing compare? - ANSWERSNet income under absorption costing is higher than variable costing when units produced are greater than units sold Gross Profit Margin - ANSWERS((# Units Sold*Price per Unit)-((# Units Sold*(Materials+Labor+Overhead)))/(# Units Sold*Price Per Unit) Activity Rate - ANSWERSEstimated Overhead/Total Product Hours Allocated Overhead - ANSWERS(Total Overhead for Activity/Total Used) & compute for each activity Forecasted Gross Margin - ANSWERS(Units*Sales)-(Units*Materials)-(Units*Labor)-(Units*Overhead)