C253 Advanced Managerial Accounting exam with correct aswers

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