MAQuiz11 - ACG 2071 Quiz November 20, 2007 Name_ UFID#_...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Name____________________________________ November 20, 2007 UFID#_____________________________ Gator Company applies production overhead to products based on direct labor hours. Production overhead information for last year is : Budgeted overhead cost applied to products $300,000 Budgeted overhead cost based on standard direct labor hours allowed $320,000 Actual overhead incurred $340,000 Standard direct labor hours allowed 10,000 1. Calculate the budgeted production overhead rate per direct labor hour used to apply production overhead to products. 2. Calculate the unfavorable flexible-budget variance for production overhead . 3. Calculate the unfavorable production volume variance for production overhead. Gator, Inc. allocates over- (and under-) applied production overhead to cost of goods sold and appropriate inventory accounts. Gator, Inc. had the following unadjusted balances at year end: Cost of goods sold $300,000 Direct-materials inventory 60,000 Work-in-process inventory 100,000 Finished goods inventory 200,000 Over-applied production overhead 18,000 4. Calculate the adjusted balance of cost of goods sold. Gator Industries produces and sells a single product. Reported operating income for the first three years of operations under variable and absorption costing are: Variable Costing Absorption Costing Year 1 $ 0 $30,000 Year 2 $120,000 $120,000 Year 3 $240,000 $200,000 Budgeted production costs per unit, sales prices, absorption rates, and budgeted volume levels were the same each year. There were no variances. 5. Calculate the difference between ”units produced” and “units sold” in Year 3 if the absorption costing fixed-production overhead application rate is $4 per unit. Answers
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This test prep was uploaded on 04/18/2008 for the course ACG 2071 taught by Professor Sumbiznatch during the Spring '06 term at University of Florida.

Page1 / 5

MAQuiz11 - ACG 2071 Quiz November 20, 2007 Name_ UFID#_...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online