C253 Advanced Managerial Accounting with complete solution

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 CostUnits Sold) - (Variable
SG&AUnits Sold)-Fixed SG&A
Fixed Manufacturing Overhead Per Unit
(COGS-Variable Manufacturing)/Units Sold
How do variable and absorption costing compare?
Net income under absorption costing is higher than variable costing when units
produced are greater than units sold
Gross Profit Margin
((# Units SoldPrice per Unit)-((# Units Sold(Materials+Labor+Overhead)))/(# Units
Sold*Price Per Unit)
Activity Rate