Accounting 2300 EXAM 3 questions
with complete solutions
product costs under absorption costing - ANS ✔✔DM
DL
Variable manufacturing overhead
Fixed manufacturing overhead
period costs under absorption costing - ANS ✔✔variable S&A
fixed S&A
income statement under absorption costing - ANS ✔✔Sales Rev
(COGS)
GP
(S&A Expenses)
NI
product costs under variable costing - ANS ✔✔DM
DL
Variable manufacturing overhead
period costs under variable costing - ANS ✔✔fixed manufacturing costs
variable S&A
fixed S&A
positive variance - ANS ✔✔unfavortable
, negative variance - ANS ✔✔favorable
DM price variance - ANS ✔✔(AQ * AP) - (AQ * SP)
AQ = quantity of materials PURCHASED
DM quantity variance - ANS ✔✔(AQ * SP) - (SQ * SP)
-----SQ = (standard quantity of DM per unit * units produced)
AQ = quantity of materials USED in production
DL rate variance - ANS ✔✔(AH * AR) - (AH * SR)
DL efficiency variance - ANS ✔✔(AH * SR) - (SH * SR)
-----SH = (standard hours of DL per unit * units produced)
variable overhead spending variance - ANS ✔✔actual variable overhead - (AH * SR)
variable overhead efficiency variance - ANS ✔✔(AH * SR) - (SH * SR)
-----SH = (standard hours of DL per unit * units produced)
production budget - ANS ✔✔budgeted sales in units
+desired ending inventory in units
=total units needed
with complete solutions
product costs under absorption costing - ANS ✔✔DM
DL
Variable manufacturing overhead
Fixed manufacturing overhead
period costs under absorption costing - ANS ✔✔variable S&A
fixed S&A
income statement under absorption costing - ANS ✔✔Sales Rev
(COGS)
GP
(S&A Expenses)
NI
product costs under variable costing - ANS ✔✔DM
DL
Variable manufacturing overhead
period costs under variable costing - ANS ✔✔fixed manufacturing costs
variable S&A
fixed S&A
positive variance - ANS ✔✔unfavortable
, negative variance - ANS ✔✔favorable
DM price variance - ANS ✔✔(AQ * AP) - (AQ * SP)
AQ = quantity of materials PURCHASED
DM quantity variance - ANS ✔✔(AQ * SP) - (SQ * SP)
-----SQ = (standard quantity of DM per unit * units produced)
AQ = quantity of materials USED in production
DL rate variance - ANS ✔✔(AH * AR) - (AH * SR)
DL efficiency variance - ANS ✔✔(AH * SR) - (SH * SR)
-----SH = (standard hours of DL per unit * units produced)
variable overhead spending variance - ANS ✔✔actual variable overhead - (AH * SR)
variable overhead efficiency variance - ANS ✔✔(AH * SR) - (SH * SR)
-----SH = (standard hours of DL per unit * units produced)
production budget - ANS ✔✔budgeted sales in units
+desired ending inventory in units
=total units needed