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Costing-variances,ABC,application of overhead

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Dear student,

Question 41: Committed resources
a) are supplied as needed.
b) are acquired by a contract for the exact amount of their usage.
c) may exceed the demand for their usage.
d) All of the above are correct.
Ans: a) are supplied as needed.

Question 42: During September, 40,000 units were produced. The standard quantity of material allowed per unit was 5 pounds at a standard cost of $2.50 per pound. If there was a favorable usage variance of $25,000 for September, the actual quantity of materials used must have been
a) 210,000 pounds.
b) 190,000 pounds.
c) 105,000 pounds.
d) 95,000 pounds.
Ans: b) 190,000 pounds.

Question 43: Zipp Company manufactures two products (X and Y). The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers:
Product Number of Setups Machine Hours Packing Orders
X 10 ...

Solution Summary

The solution contains the answers for ten questions covering variances, activity based costing,under and over application of overhead, etc.,