Beginning fixed manufacturing overhead in inventory $95, 000 Fixed manufacturing overhead in production 375,000 Ending fixed manufacturing overhead in inventory 25,000 Beginning variable manufacturing overhead in inventory $10,000 Variable manufacturing overhead in production 50,000 Ending variable manufacturing overhead in inventory 15,000 12. What is the difference between operating incomes under absorption costing and variable costing? a. $65,000 b. S 50,000 c. $40,000 d. $5,000 e. $70,000 13. What would be the estimated cost per unit if Potter Company expects to sell 2,000 units next year? a. $300 b. $312 c. $370 d. $498 e. $500 14. What is the predicted indirect manufacturing labour cost if 160 machine - hours are budgeted and 170 are actually worked, assuming the estimated cost function is y = $81.04 + 5.32x? a. $ 985.44 b. $932.24 c. $904.40 d. $851.20 e. $81.04
Beginning fixed manufacturing overhead in inventory $95, 000 Fixed manufacturing overhead in production 375,000 Ending fixed manufacturing overhead in inventory 25,000 Beginning variable manufacturing overhead in inventory $10,000 Variable manufacturing overhead in production 50,000 Ending variable manufacturing overhead in inventory 15,000 12. What is the difference between operating incomes under absorption costing and variable costing? a. $65,000 b. S 50,000 c. $40,000 d. $5,000 e. $70,000 13. What would be the estimated cost per unit if Potter Company expects to sell 2,000 units next year? a. $300 b. $312 c. $370 d. $498 e. $500 14. What is the predicted indirect manufacturing labour cost if 160 machine - hours are budgeted and 170 are actually worked, assuming the estimated cost function is y = $81.04 + 5.32x? a. $ 985.44 b. $932.24 c. $904.40 d. $851.20 e. $81.04
Chapter1: Financial Statements And Business Decisions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Beginning fixed manufacturing overhead in inventory $95,000 Fixed manufacturing overhead in
production 375,000 Ending fixed manufacturing overhead in inventory 25,000 Beginning variable
manufacturing overhead in inventory $10,000 Variable manufacturing overhead in production
50,000 Ending variable manufacturing overhead in inventory 15,000 12. What is the difference
between operating incomes under absorption costing and variable costing? a. $65,000 b. $
50,000 c. $40,000 d. $5,000 e. $70,000 13. What would be the estimated cost per unit if Potter
Company expects to sell 2,000 units next year? a. $300 b. $312 c. $370 d. $498 e. $500 14.
What is the predicted indirect manufacturing labour cost if 160 machine - hours are budgeted and
170 are actually worked, assuming the estimated cost function is y = $81.04 + 5.32x? a. $
985.44 b. $932.24 c. $904.40 d. $851.20 e. $81.04
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