Acc 206 Week 3 Chapter 4 And 5 Problems

Solution:Chapter 4 Exercise 7Overhead application rateDivision A Division BABActual machine hours Estimated machine hours Actual overhead Estimated overhead Applied overhead Over- (under-) applied overhead Chapter 4 problem 2Job OtherTotalOpeningDMDLOverheada. Compute the total overhead applied to production during May.b. Compute the cost of the ending work in process inventory.c. Compute the cost of jobs completed during May.d. Compute the cost of goods sold for the year ended May 31.Chapter 5 exercise 1HighLowaVariable costPer orderbFixed costcChapter 5 exercise 3Average revenueBreak even =Target incomeLevel of unitsRevenueNew Contribution Margin at 36less previous fixed costIncrease can be tolerateda. Compute the number of units in the ending inventory.b. Calculate the cost of a unit assuming use of:1. Direct costing.2. Absorption costing.Salesless variable costContribution Marginless fixed costNet Incomedless cost of salesOpening Inventoryadd cost of goods manufacturedGoods available for salesless ending inventoryGross profitOperating expensesvariablefixedChapter 5 Problem 6