Accounting 2300 EXAM 3 questions with complete solutions 2025/2026

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