Week 5 Test Exercises

NAME University of Phoenix: ACC/561 DATE

PHYSICAL UNITS METHOD
SOLVENT A SOLVENT B

PRICE PER GALLON 20 60

GALLONS 20,000 10,000

SALES GALLONS RELATIVE SALES VALUE METHOD VALUE AT SPLIT-OFF POINT SOLVENT A SOLVENT B $400,000 $600,000 20,000 10,000

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000 (10.000.000/1.000)*$400.666.000/30.000)*$400.000)*$400.000/1.33 WEIGHTING ALLOCATION OF JOINT COSTS (400.000 $266.000 .333.67 $600.000.000/30.000 $160.SALES VALUE AT SPLIT OFF POINT WEIGHTING ALLOCATION OF JOINT COSTS $400.000 (600.000 $240.000)*$400.000 (20.000 $133.

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NT COSTS .

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29 $5.38 Production-Volume Variance ### Absorption Cost Per Unit Variable Cost Per Unit $3.50 $1.200 Direct Materials Used $3.19 $0.600 Direct Labor $4.19 $0.63 $2.200 Variable Manufacturing Overhead $300 Selling & Administrative Expenses (All Fixed) $700 Beginning Inventories 0 Contribution Margin $5. End 800 Cost of Goods Sold Per Unit Fixed Overhead Rate $1.500 Fixed Manufacturing Overhead $2. Ending cost finished goods inventory under absorption costing = (Absorption Co 2.600 Direct-Material Inventory.00 1. Ending cost finished goods inventory cost under variable costing = (Variable Cos .21 $0.50 $2.57 $0.00 $2.Units Sold 1.44 $7.400 Units Produced 1.

= (Absorption Cost Per Unit * COGS Per Unit) ### g = (Variable Cost Per Unit * Variable### Per Unit) Cost .

000 $18.000 Contribution Margin (Unit) $4.000 Actual Production 15.000 2a.000 Expected Volume Production 18.000 $12.000 $63.600 $183.Full Absorption Method Sales Units Price $17. EOY Inventory 3.500 2b.83 12.600 .20 $120.00 $12.50 -$10.17 Total $204.20 $10.000 Manufacturing Costs Incurred Variable Fixed Nonmanufacturing costs incurred Variable Fixed Fixed Overhead Rate Production-Volume Variance $42. Full Absorption Operating Income $78.000 $24.000 $36.000 $3.80 $6.

000 Sales ### $17.Variable Costing Method Units Price Total $204.000 1. Variable Costing Operating Income ### 2a.600 ### 2b.67 Manufacturing Costs Incurred $120.000 Variable $63. Cost Assigned to EOY Inventory = $36.000 Variable Fixed $18.000 Fixed Nonmanufacturing costs incurred $24.000 $42.000 $183.00 ### $8. Full Absorption Operating Income for EOY 20X7 = .00 Actual Production Expected Volume Production### $6.

00 $10.33 .Contributio n Margin (Unit) $9.

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Spending Variance $3.Factory Overhead Fixed Variable Actual Incurred Budget for standard hours allowed for output achieved Applied Budget for actual hours of input $14.600 Production-Volume Variance = $11.300 $11.500 $11.600 d.200 .000 $11.$12.400 Total a.600 $12.700 U $900 U $1.500 .500 Spending Variance = $13.$1 Production-Volume Variance = $12.000 b.500 Flexible-Budget Variance = $13.400 .$11. Efficiency Variance $400 Favorable (F) / Fixed Unfavorable (U) U $1.200 $12.11.000 . Flexible Budget Variance $4.000 Spending Variance = $14.500 $13.300 .200 .300 . Production-Volume Variance 900 $ c.500 .$12.000 $11.400 Efficiency Variance = $12.$12.700 F NA Fixed: Variable: Flexible-Budget Variance = $14.500 Efficiency Variance = $11.$11.

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$11.000 = $13.Favorable (F) / Favorable (F) / Variable Unfavorable (U) Unfavorable (U) U $2.300 .000 .$11.300 U U U $1.400 = $11.000 .400 .300 .$11.900 U $400 F riance = $13.$11.000 Variance = $11.

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000 Efficiency Variance = $45.500 $7. PRODUCTION VOLUME VARIANCE 4.500 . EFFICIENCY VARIANCE TOTAL OVERHEAD U/F VARIABLE U/F $2.$41.000 Flexible-Budget Variance = $48.$41.500 .500 U $4.000 $1.500 .000 U $3.500 .200 $6.000 U $4.$70.000 Underapplied Overhead = $48.000 Flexible-Budget Variance = $68.$70.000Spending Variance = $68.500 ### 1.Budget for actual hours of input Applied Budget for standard hours allowed for actual output achieved Actual incurred Variable $45.$70.$64. FLEXIBLE-BUDGET VARIANCE 5. UNDERAPPLIED OVERHEAD Variable: Fixed: Spending Variance = $48.500 .000 $41.000 Fixed ### ### $48.000 .$41.000 .000 Production-Volume Variance = $41.500 U U 3.000 Efficiency Variance = $70.$45.000 U $5.200 U U U $7.500 . SPENDING VARIANCE 2.000 Underapplied Overhead = $68.$41.$64.800 .000Production-Volume Variance = $70.000 .800 .

$64.FIXED U/F $1.$70.000 68.500 F $5.000 0 .800 .500 .500 $3.$70.$70.$64.000 .800 $68.700 U F U 0 .500 .200 $1.000 = $70.

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