C253 Advanced Managerial Accounting
Study Guide Exam And Actual Answers.
Material Overhead Rate (Labor Hours) - Answer Estimated Overhead/Estimated Labor Hours
Cost Per Part - Answer (Direct Materials + Direct Labor + (overhead rate * amount of overhead))/units
COGS - Answer (Beg. Materials+Purchased Materials+End Materials)+Direct Labor+(Overhead for
Labor)+(Beg work in process-End work in process)
Predetermined Overhead Rate - Answer Estimated total manufacturing overhead/Estimated total
amount of allocation base
Manufacturing Overhead Applied - Answer Predetermined Overhead Rate x Actual amount of
allocation base
Total Manufacturing Cost - Answer Direct Materials + Direct Labor + Overhead
COGS Manufactured - Answer Direct Materials+Direct Labor+Manufacturing Overhead Applied+Beg
Work in Process-End Work in Process
What industry uses job order costing - Answer Legal Services
Adjusted COGS - Answer Unadjusted COGS-under/overapplied overhead
What type of business is process costing? - Answer Flour Manufacturer
What are absorption costing product costs? - Answer Materials, Labor, Variable Manufacturing
Overhead and Fixed Manufacturing Overhead (No selling and general admin)
, What are variable costing product costs? - Answer Materials, Labor and Variable Manufacturing
Overhead (no fixed costs)
Absorption Cost - Answer (((Material+Labor+Variable Manufacturing Overhead)*Units Produced)+Fixed
Costs)/Units Produced
Net Income - Answer Sales Revenue - Expense (Revenue - (Absorption Cost*Units Sold) - (Variable
SG&A*Units Sold)-Fixed SG&A
Fixed Manufacturing Overhead Per Unit - Answer (COGS-Variable Manufacturing)/Units Sold
How do variable and absorption costing compare? - Answer Net income under absorption costing is
higher than variable costing when units produced are greater than units sold
Gross Profit Margin - Answer ((# Units Sold*Price per Unit)-((# Units
Sold*(Materials+Labor+Overhead)))/(# Units Sold*Price Per Unit)
Activity Rate - Answer Estimated Overhead/Total Product Hours
Allocated Overhead - Answer (Total Overhead for Activity/Total Used) & compute for each activity
Forecasted Gross Margin - Answer (Units*Sales)-(Units*Materials)-(Units*Labor)-(Units*Overhead)
Relevant Costs Are - Answer The costs that are different between two choices
Segment Margin - Answer Sales-Variable Expenses-Relevant Costs
What is the most reliable determinant for taking on a project - Answer Net Present Value (NPV)
What is the Present Value Factor - Answer Investment/Return
Study Guide Exam And Actual Answers.
Material Overhead Rate (Labor Hours) - Answer Estimated Overhead/Estimated Labor Hours
Cost Per Part - Answer (Direct Materials + Direct Labor + (overhead rate * amount of overhead))/units
COGS - Answer (Beg. Materials+Purchased Materials+End Materials)+Direct Labor+(Overhead for
Labor)+(Beg work in process-End work in process)
Predetermined Overhead Rate - Answer Estimated total manufacturing overhead/Estimated total
amount of allocation base
Manufacturing Overhead Applied - Answer Predetermined Overhead Rate x Actual amount of
allocation base
Total Manufacturing Cost - Answer Direct Materials + Direct Labor + Overhead
COGS Manufactured - Answer Direct Materials+Direct Labor+Manufacturing Overhead Applied+Beg
Work in Process-End Work in Process
What industry uses job order costing - Answer Legal Services
Adjusted COGS - Answer Unadjusted COGS-under/overapplied overhead
What type of business is process costing? - Answer Flour Manufacturer
What are absorption costing product costs? - Answer Materials, Labor, Variable Manufacturing
Overhead and Fixed Manufacturing Overhead (No selling and general admin)
, What are variable costing product costs? - Answer Materials, Labor and Variable Manufacturing
Overhead (no fixed costs)
Absorption Cost - Answer (((Material+Labor+Variable Manufacturing Overhead)*Units Produced)+Fixed
Costs)/Units Produced
Net Income - Answer Sales Revenue - Expense (Revenue - (Absorption Cost*Units Sold) - (Variable
SG&A*Units Sold)-Fixed SG&A
Fixed Manufacturing Overhead Per Unit - Answer (COGS-Variable Manufacturing)/Units Sold
How do variable and absorption costing compare? - Answer Net income under absorption costing is
higher than variable costing when units produced are greater than units sold
Gross Profit Margin - Answer ((# Units Sold*Price per Unit)-((# Units
Sold*(Materials+Labor+Overhead)))/(# Units Sold*Price Per Unit)
Activity Rate - Answer Estimated Overhead/Total Product Hours
Allocated Overhead - Answer (Total Overhead for Activity/Total Used) & compute for each activity
Forecasted Gross Margin - Answer (Units*Sales)-(Units*Materials)-(Units*Labor)-(Units*Overhead)
Relevant Costs Are - Answer The costs that are different between two choices
Segment Margin - Answer Sales-Variable Expenses-Relevant Costs
What is the most reliable determinant for taking on a project - Answer Net Present Value (NPV)
What is the Present Value Factor - Answer Investment/Return
