1.How does 'job-order costing' differ from 'process-costing'?

2.Actual overhead for 2021 was $100,000, expected overhead for 2021 was $110,000 and applied overhead for 2021 was $99,000.Actual machine hours for 2021 was 11,000 and expected machine hours for 2021 were 10,000.What was the predetermined overhead rate for 2021?

a.How much was overhead under or over-applied"

b.Give the journal entry for any under or over-applied overhead.

3.At March 1 ABC had 10 units in WIP (100% complete in materials, and 50% complete in conversion).During March they started another 90 units.At March 31 they had 20 units in WIP (80% complete in materials and 40% complete in conversion.

a.What was the equivalent units of production for materials in March?

b.What was the equivalent units of production for conversion in March?

4.ABC sells a product for $40, and has variable costs per unit of $10.Fixed costs are $12,000.What would dollar sales need to be for ABC to make a profit of $6,000?

5.Use the same cost information given in question 5.If ABC could spend $4,000 on advertising (a fixed cost) and as a result increase selling price by $10, how many units would they need to sell to break-even?

6.ABC produces 10,000 units but only sells 9,000.As a result, the net income under absorption costing is higher than net income under variable costing.Why?

7.Selling price is $30, direct materials are $5 per unit, direct labor is $2 per unit. variable manufacturing overhead costs are $5 per unit and variable selling costs are $6 per unit.Fixed manufacturing overhead costs are $4,000 (there are no other fixed costs).In March ABC produced 1,000 units and sold 900.What is net operating under absorption costing?

8.ABC sells on credit, and collects 30% of the cash from the sale in the month of the sale, 50% in the month after the sale and the remaining 20% in the next month.Budgeted sales in the first 4 months (i.e. January through April of 2021 were 20,000, 25,000, 30,000 and 10,000.ABC always has 20% of next month's sales in inventory at the end of each month. What is budgeted production for January, February and March?

9.ABC produces a product has a standard of 2 hours of labor, with a standard wage rate of $20 per hour.In March ABC budgeted to produce 800 units of the product and actually produced 1,000 units of the product.ABC bought and used 1,500 hours of labor (and paid $22 per hour).Calculate the labor efficiency variance and labor rate variance.Give a logical explanation for the variances you have calculated.

10.ABC makes 10,000 units per year of X, and has direct material cost of $10 per unit, direct labor cost of $5 per unit, variable overhead costs of $3 per unit, and variable selling costs of $6 per unit.In addition, ABC has depreciation expense of $30,000 per year on a machine with a resale value of $5,000, and fixed manufacturing overhead of $40,000 per year has been allocated to product X by ABC.XYZ has offered to sell them 10,000 units of a good substitute for X for $280,000.What is the financial advantage/disadvantage of accepting the offer?

11.Would your answer to question 10 change if ABC could use the free space from accepting the offer to manufacture a new product which would increase profits by $60,000? Explain

12.ABC produces 3 products, X, Y and Z.Their selling prices are $1000, $500, and $200 respectively, and they have variable costs of $750, $300, and $100 respectively.They can sell 100 units of each per week. X requires 10 hours of labor, Y requires 5 hours of labor, and Z requires 1 hour of labor.ABC has available 800 hours of labor per week. What quantity of each product should they produce?

13.Using the information in question 13, what is the most per hour that ABC would pay to hire extra workers?

14.ABC is considering buying a machine for $900,000 that will save 10,000 hours of direct labor per year.The machine has a life of 5 years. Direct labor is $25 per hour.What is the internal rate of return on the investment?

15.ABC is considering buying a machine for $250,000, that will reduce material costs for the next 5 years by $90,000 a year.It will require maintenance of $10,000 per year and can be sold at the end of 5 years for $50,000.The project also requires a working capital of $20,000. ABC has a required rate of return of 9%.Should they go ahead? Why/why not?

16.What does the answer to 15 tell you?