Ex. 2-14 (MAN)
Ex. 2-10 (MAN)
The estimated shop overhead is determined as follows:
For the Month Ended June 30, 2016
Shop and repair equipment depreciation
Shop supervisor salaries
Shop property ta
Assigning manufacturing overhead costs to jobs does not ensure a profit. The units
produced may not be sold and if they are sold, they may not be sold at prices sufficient to
cover all costs. It is a myth that assigning costs to products or jobs ensur
A flexible budget can be adjusted to reflect any level of activityincluding the actual
level of activity. By contrast, a static planning budget is prepared for a single level of
activity and is not subsequently adjusted.
A flexible budget is creat
If the selling price decreased, then the total revenue line would rise less steeply, and
the break-even point would occur at a higher unit volume.
If the fixed cost increased, then both the fixed cost line and the total cost line would
No. A variable cost is a cost that varies in total amount in direct proportion to changes in
the level of activity. A differential cost is the difference in cost between two alternatives.
If the level of activity is the same for the two alternatives,
Ex. 18 (MAN)
The maintenance salaries and indirect materials should be included as factory overhead.
The factory overhead incorrectly includes the following items: sales salaries, promotional expenses,