1. AC505 Week 2 Quiz PLEASE DOWNLOAD HERE1.
1. (TCO 2) Bubba’s Crawfish Processing Company uses a traditional overhead allocation based on direct labor hours. For the current year overhead is estimated at $2,250,000 and direct labor hours are budgeted at 415,000 hours. Actual overhead was $2,200,000 and actual direct labor hours worked were 422,000.
(a) Calculate the predetermined overhead rate.
(b) Calculate the overhead applied.
(c) Determine the amount of overhead that is over/under applied.
2. (TCO 2) Thibodeaux Limousine Corporation is trying to determine a predetermined manufacturing overhead. Estimated overhead for the upcoming year is $776,000. Budgeted machine hours are 105,000 hours, and budgeted labor hours are 17,500 hours at a rate of $10.00 per hour. Compute the predetermined overhead rate based on:
(a) Direct labor dollars
(b) Direct labor hours
(c) Machine hours
3. (TCO 1) List and briefly describe four of the five differences between managerial accounting and financial accounting
4. (TCO 2)The following information is available for Sappy’s Surgical Shears for the fiscal year ending December 31, 20XX. Beginning balance in Finished Goods $ 17,000 Ending balance in Finished Goods 15,200 Beginning balance in Work in Process 2,500Ending balance in Work in Process 1,836 Selling expenses 123,000 General and administrative expenses 89,000Direct material cost 54,500 Direct labor cost 66,000 Manufacturing overhead 21,400 Sales 385,000
Prepare a schedule of cost of goods manufactured.
5. (TCO 2) Match each of the following six terms with the phrase that most closely describes it. Each answer below may be used only once.
______ 1. activity-based costing
______ 2. cost of goods available for sale
______ 3. period costs
______ 4. process costing system
______ 5. just-in-time system
______ 6. work in process
(A) Costs assigned to the goods…...