C253 Advanced Managerial Accounting
With Complete Solution
Material Overhead Rate (Labor Hours) - Estimated Overhead/Estimated Labor Hours
Cost Per Part - (Direct Materials + Direct Labor + (overhead rate * amount of
overhead))/units
COGS - (Beg. Materials+Purchased Materials+End Materials)+Direct Labor+(Overhead
for Labor)+(Beg work in process-End work in process)
Predetermined Overhead Rate - Estimated total manufacturing overhead/Estimated
total amount of allocation base
Manufacturing Overhead Applied - Predetermined Overhead Rate x Actual amount of
allocation base
Total Manufacturing Cost - Direct Materials + Direct Labor + Overhead
COGS Manufactured - Direct Materials+Direct Labor+Manufacturing Overhead
Applied+Beg Work in Process-End Work in Process
What industry uses job order costing - Legal Services
Adjusted COGS - Unadjusted COGS-under/overapplied overhead
What type of business is process costing? - Flour Manufacturer
What are absorption costing product costs? - Materials, Labor, Variable Manufacturing
Overhead and Fixed Manufacturing Overhead (No selling and general admin)
What are variable costing product costs? - Materials, Labor and Variable Manufacturing
Overhead (no fixed costs)
Absorption Cost - (((Material+Labor+Variable Manufacturing Overhead)*Units
Produced)+Fixed Costs)/Units Produced
Net Income - Sales Revenue - Expense (Revenue - (Absorption Cost*Units Sold) -
(Variable SG&A*Units Sold)-Fixed SG&A
With Complete Solution
Material Overhead Rate (Labor Hours) - Estimated Overhead/Estimated Labor Hours
Cost Per Part - (Direct Materials + Direct Labor + (overhead rate * amount of
overhead))/units
COGS - (Beg. Materials+Purchased Materials+End Materials)+Direct Labor+(Overhead
for Labor)+(Beg work in process-End work in process)
Predetermined Overhead Rate - Estimated total manufacturing overhead/Estimated
total amount of allocation base
Manufacturing Overhead Applied - Predetermined Overhead Rate x Actual amount of
allocation base
Total Manufacturing Cost - Direct Materials + Direct Labor + Overhead
COGS Manufactured - Direct Materials+Direct Labor+Manufacturing Overhead
Applied+Beg Work in Process-End Work in Process
What industry uses job order costing - Legal Services
Adjusted COGS - Unadjusted COGS-under/overapplied overhead
What type of business is process costing? - Flour Manufacturer
What are absorption costing product costs? - Materials, Labor, Variable Manufacturing
Overhead and Fixed Manufacturing Overhead (No selling and general admin)
What are variable costing product costs? - Materials, Labor and Variable Manufacturing
Overhead (no fixed costs)
Absorption Cost - (((Material+Labor+Variable Manufacturing Overhead)*Units
Produced)+Fixed Costs)/Units Produced
Net Income - Sales Revenue - Expense (Revenue - (Absorption Cost*Units Sold) -
(Variable SG&A*Units Sold)-Fixed SG&A
