C253 Advanced Managerial Accounting exam
with correct aswers
Material vOverhead vRate v(Labor vHours) v- vcorrect vanswerEstimated vOverhead/Estimated vLabor vHours
Cost vPer vPart v- vcorrect vanswer(Direct vMaterials v+ vDirect vLabor v+ v(overhead vrate v* vamount vof
voverhead))/units
COGS v- vcorrect vanswer(Beg. vMaterials+Purchased vMaterials+End vMaterials)+Direct vLabor+(Overhead
vfor vLabor)+(Beg vwork vin vprocess-End vwork vin vprocess)
Predetermined vOverhead vRate v- vcorrect vanswerEstimated vtotal vmanufacturing voverhead/Estimated
vtotal vamount vof vallocation vbase
Manufacturing vOverhead vApplied v- vcorrect vanswerPredetermined vOverhead vRate vx vActual vamount vof
vallocation vbase
Total vManufacturing vCost v- vcorrect vanswerDirect vMaterials v+ vDirect vLabor v+ vOverhead
COGS vManufactured v- vcorrect vanswerDirect vMaterials+Direct vLabor+Manufacturing vOverhead
vApplied+Beg vWork vin vProcess-End vWork vin vProcess
What vindustry vuses vjob vorder vcosting v- vcorrect vanswerLegal vServices
Adjusted vCOGS v- vcorrect vanswerUnadjusted vCOGS-under/overapplied voverhead
What vtype vof vbusiness vis vprocess vcosting? v- vcorrect vanswerFlour vManufacturer
, What vare vabsorption vcosting vproduct vcosts? v- vcorrect vanswerMaterials, vLabor, vVariable vManufacturing
vOverhead vand vFixed vManufacturing vOverhead v(No vselling vand vgeneral vadmin)
What vare vvariable vcosting vproduct vcosts? v- vcorrect vanswerMaterials, vLabor vand vVariable
vManufacturing vOverhead v(no vfixed vcosts)
Absorption vCost v- vcorrect vanswer(((Material+Labor+Variable vManufacturing vOverhead)*Units
vProduced)+Fixed vCosts)/Units vProduced
Net vIncome v- vcorrect vanswerSales vRevenue v- vExpense v(Revenue v- v(Absorption vCost*Units vSold) v-
v(Variable vSG&A*Units vSold)-Fixed vSG&A
Fixed vManufacturing vOverhead vPer vUnit v- vcorrect vanswer(COGS-Variable vManufacturing)/Units vSold
How vdo vvariable vand vabsorption vcosting vcompare? v- vcorrect vanswerNet vincome vunder vabsorption
vcosting vis vhigher vthan vvariable vcosting vwhen vunits vproduced vare vgreater vthan vunits vsold
Gross vProfit vMargin v- vcorrect vanswer((# vUnits vSold*Price vper vUnit)-((# vUnits
vSold*(Materials+Labor+Overhead)))/(# vUnits vSold*Price vPer vUnit)
Activity vRate v- vcorrect vanswerEstimated vOverhead/Total vProduct vHours
Allocated vOverhead v- vcorrect vanswer(Total vOverhead vfor vActivity/Total vUsed) v& vcompute vfor veach
vactivity
Forecasted vGross vMargin v- vcorrect vanswer(Units*Sales)-(Units*Materials)-(Units*Labor)-
(Units*Overhead)
Relevant vCosts vAre v- vcorrect vanswerThe vcosts vthat vare vdifferent vbetween vtwo vchoices
Segment vMargin v- vcorrect vanswerSales-Variable vExpenses-Relevant vCosts
with correct aswers
Material vOverhead vRate v(Labor vHours) v- vcorrect vanswerEstimated vOverhead/Estimated vLabor vHours
Cost vPer vPart v- vcorrect vanswer(Direct vMaterials v+ vDirect vLabor v+ v(overhead vrate v* vamount vof
voverhead))/units
COGS v- vcorrect vanswer(Beg. vMaterials+Purchased vMaterials+End vMaterials)+Direct vLabor+(Overhead
vfor vLabor)+(Beg vwork vin vprocess-End vwork vin vprocess)
Predetermined vOverhead vRate v- vcorrect vanswerEstimated vtotal vmanufacturing voverhead/Estimated
vtotal vamount vof vallocation vbase
Manufacturing vOverhead vApplied v- vcorrect vanswerPredetermined vOverhead vRate vx vActual vamount vof
vallocation vbase
Total vManufacturing vCost v- vcorrect vanswerDirect vMaterials v+ vDirect vLabor v+ vOverhead
COGS vManufactured v- vcorrect vanswerDirect vMaterials+Direct vLabor+Manufacturing vOverhead
vApplied+Beg vWork vin vProcess-End vWork vin vProcess
What vindustry vuses vjob vorder vcosting v- vcorrect vanswerLegal vServices
Adjusted vCOGS v- vcorrect vanswerUnadjusted vCOGS-under/overapplied voverhead
What vtype vof vbusiness vis vprocess vcosting? v- vcorrect vanswerFlour vManufacturer
, What vare vabsorption vcosting vproduct vcosts? v- vcorrect vanswerMaterials, vLabor, vVariable vManufacturing
vOverhead vand vFixed vManufacturing vOverhead v(No vselling vand vgeneral vadmin)
What vare vvariable vcosting vproduct vcosts? v- vcorrect vanswerMaterials, vLabor vand vVariable
vManufacturing vOverhead v(no vfixed vcosts)
Absorption vCost v- vcorrect vanswer(((Material+Labor+Variable vManufacturing vOverhead)*Units
vProduced)+Fixed vCosts)/Units vProduced
Net vIncome v- vcorrect vanswerSales vRevenue v- vExpense v(Revenue v- v(Absorption vCost*Units vSold) v-
v(Variable vSG&A*Units vSold)-Fixed vSG&A
Fixed vManufacturing vOverhead vPer vUnit v- vcorrect vanswer(COGS-Variable vManufacturing)/Units vSold
How vdo vvariable vand vabsorption vcosting vcompare? v- vcorrect vanswerNet vincome vunder vabsorption
vcosting vis vhigher vthan vvariable vcosting vwhen vunits vproduced vare vgreater vthan vunits vsold
Gross vProfit vMargin v- vcorrect vanswer((# vUnits vSold*Price vper vUnit)-((# vUnits
vSold*(Materials+Labor+Overhead)))/(# vUnits vSold*Price vPer vUnit)
Activity vRate v- vcorrect vanswerEstimated vOverhead/Total vProduct vHours
Allocated vOverhead v- vcorrect vanswer(Total vOverhead vfor vActivity/Total vUsed) v& vcompute vfor veach
vactivity
Forecasted vGross vMargin v- vcorrect vanswer(Units*Sales)-(Units*Materials)-(Units*Labor)-
(Units*Overhead)
Relevant vCosts vAre v- vcorrect vanswerThe vcosts vthat vare vdifferent vbetween vtwo vchoices
Segment vMargin v- vcorrect vanswerSales-Variable vExpenses-Relevant vCosts
