ACCY EXAM WITH COMPLETE SOLUTIONS

ACCY EXAM WITH COMPLETE
SOLUTIONS

Production Budget Formula - Answer- Production Units = Sales Units + Desired Ending
Finished Goods Units - Beginning Finished Goods Units

DM Purchases Formula - Answer- DM purchases = DM needed for production+ desired
ending raw materials - beginning raw materials

Cash collection formula - Answer- Collections =% of current months sales + % of prior
months sales

DM Price Variance Formula - Answer- actual quantity purchased x (actual price -
standard price)

DM Quantity Variance Formula - Answer- standard price x (actual quantity - standard
quantity)

DL Rate Variance Formula - Answer- Actual Hours x (Actual Rate - Standard Rate)

DL Efficiency Variance Formula - Answer- standard rate x (actual hours - standard
hours)

VOH variance formula - Answer- (Actual VOH - standard VOH for actual hours)

FOH volume variance - Answer- Budgeted FOH - Applied FOH for actual units

What are period costs - Answer- costs that are not included in inventory and are
expensed in the period incurred. Selling and administrative expenses, office salaries,
marketing

Under variable costing which costs are product costs - Answer- Direct materials, direct
labor variable manufacturing overhead. Fixed MOH is a period cost!

Under absorption costing which costs are product costs - Answer- Direct materials,
direct labor all manufacturing overhead (variable+fixed)