# 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.