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# MAQuiz11 - ACG 2071 Quiz Name UFID Gator Company applies...

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ACG 2071 Quiz 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.

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MAQuiz11 - ACG 2071 Quiz Name UFID Gator Company applies...

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