The spread of over allocated overhead and under allocated overhead among work in process, finished goods and goods sold cost is classified as __________?

Related Mcqs:

1. An approach in which, the over allocated and under allocated is spread in, ending balance of finished goods control, is called ___________?

   A. allocation approach
   B. unadjusted approach
   C. proration approach
   D. adjusted approach

2. If an actual indirect cost incur is $35000 and the indirect cost allocated is $43000, then the under allocated indirect cost will be __________?

   A. $78,000
   B. −$78000
   C. −$8000
   D. $8,000

3. The budget sales, plus target ending finished goods inventory, minus beginning finished goods inventory is equal to ___________?

   A. budget production
   B. planned production
   C. setup production
   D. stand by production

4. If an actual indirect cost incurred is $25000 and the indirect cost allocated is $23000, then the over allocated indirect cost would be ________?

   A. $48,000
   B. −$2000
   C. $2,000
   D. −$48000

5. If the fixed overhead allocated for actual output unit is $7500 and budgeted fixed overhead is $21000, then the production volume variance will be __________?

   A. $16,500
   B. $15,500
   C. $14,500
   D. $13,500

6. If fixed overhead allocated for actual output units is $36000 and the production volume variance is $7000, then budgeted fixed overhead will be __________?

   A. $43,000
   B. $42,000
   C. $29,000
   D. $19,000

7. The fixed overhead allocated for actual output unit is subtracted from budgeted fixed overhead to calculate _______________?

   A. budget variance
   B. production volume variance
   C. price volume variance
   D. cost volume variance

8. If the fixed overhead allocated for actual output unit is $9800 and budgeted fixed overhead is $22000, then production volume variance would be _________?

   A. $31,800
   B. $12,300
   C. $12,200
   D. $41,800

9. If fixed overhead allocated for actual output units is $25000 and the production volume variance is $9000, then budgeted fixed overhead will be _____________?

   A. $34,000
   B. $24,000
   C. $16,000
   D. $18,000

10. The production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as ____________?

    A. reduced work
    B. spoilage
    C. rework
    D. scrap