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Maria Garcia Essay

614 words - 3 pages

Marcella Puente
13-B3
Ending Finished Goods inventory cost under absorption costing would be
=(4200+3500+2200+300)*200/1600=1275
 
Ending Finished Goods inventory cost under Variable costing would be
=(4200+3500+300)*200/1600=1000
 
Absorption costing includes all manufacturing costs including direct materials, direct labor, and both variable and fixed manufacturing overhead.
 
Variable costing includes only variable manufacturing costs --- direct materials, direct labor, and variable manufacturing overhead.

The 200 is from the units produced - units sold = 200

13-45

Var mfg - cost/unit non-mfg – cost/unit
120000/15000=8.0 24000/12000=2.0
Operating Income
...view middle of the document...

Consider the following data regarding factory overhead:
Variable Fixed
Budget for actual hours of input $45,000 $70,000
Applied 41,000 64,800
Budget for standard hours allowed
for actual output achieved ? ?
Actual incurred 48,500 68,500
Using the above data, fill in the following blanks with the variance amounts. Use F for favorable or U
for unfavorable for each variance.
                            Total Overhead                &n bsp;  Variable                    Fixed
1. Spending variance ______                        _ _____                          ______
2. Efficiency variance ______             &n bsp;            ______                        ______
3. Production-volume variance ______               ______                      ______
4. Flexible-budget variance ______     & nbsp;             ______                     ______
5. Underapplied overhead ______&n bsp;                    ______                      ______

Note that the budget for standard hours allowed for actual output achieved for variable overhead must be $41,000, the same as applied. In contrast, the budget for...

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