(Top QUALITY 2024/2025 EXAM REVIEW) WGU C253 Advanced Managerial Accounting, Questions and answers, 100% Accurate. VERIFIED.

WGU C253 Advanced Managerial Accounting, Questions and answers, 100% Accurate. VERIFIED. 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 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 Sold*Price per Unit)-((# Units Sold*(Materials+Labor+Overhead)))/(# Units Sold*Price Per Unit) Activity Rate - -Estimated Overhead/Total Product Hours Allocated Overhead - -(Total Overhead for Activity/Total Used) & compute for each activity Forecasted Gross Margin - -(Units*Sales)-(Units*Materials)-(Units*Labor)-(Units*Overhead) Relevant Costs Are - -The costs that are different between two choices Segment Margin - -Sales-Variable Expenses-Relevant Costs What is the most reliable determinant for taking on a project - -Net Present Value (NPV) What is the Present Value Factor - -Investment/Return Simple Rate of Return - -(Revenue-Costs)/initial investment (Costs include depreciation) What do you need to calculate to determine Payback Period - -Net Cash Flow (Net Income+Depreciation) Do you accept a project with a higher or lower IRR? - -Higher Net Present Value - -(((Sales-Annual Costs)*PVF)+((Working Capital+Salvage Value)*PVF))- ((Equipment Costs+Work in Capital)+(Overhaul Equipment)*PVF)) How do you use Present Value Table? - -Match up time in years with the discount rate to get factor Profitability Index - -(Present Value-Upfront Investment)/Upfront Investment Revised NPV - -NPV+(cash inflows*PVF at cash inflow) Break Even Point - -Fixed Costs/Contribution Margin Break Even Point Change - -((Fixed Costs/(Product A*%Sales)+(Product B*%Sales))*%Sales Calculate the Breakeven Point at both Sales % and subtract them Contribution Margin - -S