Knowledge Check 01 Transfers between divisions of the same company are referred to as: Related-party transactions O Divisional allocations O Dual market transactions Knowledge Check 02 If a transfer price is set at the market price, it is also called: O The floor O The capital O The ceiling O The high transfer 7 2 Knowledge Check 03 Transfer prices determine the O Firm's overall profitability O Distribution of profits Responsibility center's authority to sell Knowledge Check 03 At the end of the accounting period, all variances should be closed to to adjust the standard cost to the actual cost Cost of Goods Sold O Raw Materials Inventory Cost Variances Work In Process Inventory Knowledge Check 04 At the end of the year, the Cost Variances account of Alpha Inc. shows a debit balance of $1700. The balance is considered the fixed overhead spending variance of $200, favorable. The total standard cost of production is $165,500. Calculate the actual cost of goods sold $163.800 $167.200 $165,500 $164.000 Knowledge Check 04 BonJoy Co, applies variable overhead on the basis of direct labor hours. For the month of June, the variable overhead efficiency variance is unfavorable but the variable overhead rate variance is favorable. Which of the following can be concluded from this? The fixed overhead costs were not incurred, The actual variable overhead rate was more than budgeted, O The quantity of actual direct labor hours ussl was more than budgeted. The quantity of actual direct labor hours used was less than budgeted