(Top QUALITY 2024/2025 EXAM REVIEW) WGU C253 Managerial Accounting, Exam Review Questions. Latest update, VERIFIED.

WGU C253 Managerial Accounting, Exam Review Questions. Latest update, VERIFIED. Pre-determined overhead rate formula - -projected overhead costs / expected activity base applied overhead formula - -pre-determined overhead rate x actual units of allocation based (such as direct labor hours) Under/over applied overhead rate = - -actual MOH - applied MOH Job cost = - -Direct materials + direct labor + applied MOH + (beg wip - ending wip) Cost of good sold = - -cost of goods manufactured + (beginning finished goods - ending finished goods) adjusted cost of goods sold = - -cost of goods manufactured + (beginning finished goods - ending finished goods) +/- under/over applied MOH Process Costing - -A system for assigning costs to a large number of identical units that typically pass through a series of uniform production steps. Costs are averaged over the units produced such that each unit bears the same unit cost. Weighted Average Method - -a process costing method that blends together units and costs from both the current and prior periods Weighed average units transferred = - -beginning units + units started - ending WIP Weighted average equivalent units for materials = - -(units transferred * 100%) +(end WIP * completion %) Weighted average equivalent units for conversion = - -(Units transferred * 100% ) (end WIP * completion %) Cost / equivalent unit for materials = - -(Beg WIP $ + Current cost$)/ Equivalent units for materials. Cost/equivalent unit for conversion = - -(Beg WIP$+Current cost$) / Equivalent units for conversion Cost assigned to units transferred = - -(units transferred * cost/eq units for materials) + (units transferred * cost /eq unit for conversion) Cost assigned to ending WIP = - -(End WIP eq units for materials * cost /eq unit for materials ) + (end WIP eq units for conversion * cost/eq unit for conversion) Variable absorption costing = - -direct material + direct labor + variable MOH absorption costing product cost = - -direct material + direct labor + variable MOH + fixed MOH Difference in net income between variable an absorption costing - -= ending inventory * fixed MOH/unit. Material price variance formula - -(AP - SP) x AQ Material quantity variance formula - -(AQ -SQ) x SP A labor variance is a difference between - -scheduled hours and actual hours worked labor variance formula - -AH(AR-SR) labor efficiency variance - -The labor efficiency variance is the difference between actual direct labor hours worked, and the standard quantity of hours allowed for actual production, times the direct labor wage rate per hour. Labor Efficiency - -SR (AH-SH) Variable overhead spending variance - -(AR-SR)*AH Variable Overhead Efficiency Variance - -The difference between the actual level of activity (direct labor-hours, machine-hours, or some other base) and the standard activity allowed, multiplied by the variable part of the predetermined overhead rate. Segment Elimination Decisions - -A three step decision: 1. Determine the amount of relevant revenue that pertains to eliminating the segment. 2. Determine the amount of cost that can be avoided if the segment is eliminated. 3. If the relevant revenue is less than the avoidable cost, eliminate the segment. If not, continue to operate it. segment margin formula - -Sales revenue - variable costs - avoidable fixed costs make or buy decision - -a decision concerning whether an item should be produced internally or purchased from an outside supplier Make or Buy Formula - -cost to male = variable costs + avoidable fixed costs. Cost to buy = purchase select the lower of the two Sell As Is or Process Further Decision Rule - -if the incremental profit is positive, then process further Sell As Is or Process Further formual - -incremental profit - incremental revenue - incremental costs to process further Constrained Resource - -resource that is unable to meet the demand placed on it Contribution margin/unit = - -(S.P - V.C) contribution margin / constrained resource = - -(S.P - V.C )/ units of constrained resource Budgeted Production - -Budgeted Sales + Desired Ending Inventory - Beginning Inventory flexible budgeting Activity variance - -planning budget - flexible budget Flexible budgeting revenue and spending variance - -flexible budget - actual results ROI = - -ROI = net income/ average investment Residual income = - -residual income = net income - (average investment * minimum required rate of return) Simple state of return - -Net income / initial investment Cost-Volume-Profit Analysis - -The study of the effects of changes in costs and volume on a company's profits. BEP (Break even point) Units = - -fixed costs / (S.P - V.C) BEP (Break even point) Money = - -(fixed costs / (S.P-V.C))*S.P Margin of Safety - -difference between your actual or expected profitability and the break even point Margin of safety formual - -Actual or budgeted sales - BEP Degree of operating leverage - -Net operating income / contributions margin Profitablity Index - -Present value of Net Cash flows divided by Initial Investment. NVP = - -PV of net cash inflows - PV of net cash outflow