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  11) One of the important aspects about the dual-rate method is that it allows managers to see how variable and fixed costs behave differently. 11) ______ 12) The user department is responsible for any unfavourable cost variances during the budgeting period if budgeted prices and quantities are used for cost allocation. 12) ______ 13) User departments will be able to determine their allocated costs for each category in advance if budgeted usage is the allocation base. 13) ______ 14) A budgeted rate helps to motivate the manager of a support department. 14) ______ 15) A support department adds value […]

  SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 71) Valley West Amusement Park is evaluating its ticket prices. It is open during the summer months for 15 weeks. The following information pertains to last year's tourist season. Costs are expected to remain the same for this year.   Average tourists per day on Friday thru Tuesday2,500 Average tourists per day on Wednesday and Thursday1,000 Variable operating costs per day when open$ 4,100 Fixed overhead costs per year$180,000 Marketing costs per year$ 62,500 Customer service costs per year$ 5,000   Required:   […]

  5) The Schedule of Accounts Payable is listed alphabetically. 6) The accounts payable subsidiary ledger should equal the control account in the general ledger.   7) The controlling account is found in the subsidiary ledger for all accounts payable.   8) Schedule of Accounts Payable is a list of customer accounts that owe the company money.   9) The Accounts Receivable and Accounts Payable are both controlling accounts.   10) A list showing the ending balances owed to individual creditors is called a Schedule of Accounts Payable.   10.6   Learning Objective 10-6   1) Using the perpetual inventory system, […]

  21) In absorption costing, all nonmanufacturing costs are subtracted from gross margin. 22) Direct costing is a perfect way to describe the variable-costing inventory method.   23) The distinction between absorption costing and variable costing is most important for which type of industry? A) manufacturing B) marketing C) retail D) service E) educational   24) When all fixed manufacturing costs and variable manufacturing costs are included as inventorial costs, the method being used is A) absorption costing. B) fixed overhead costing. C) manufacturing overhead costing. D) variable costing. E) direct costing.   25) The method of costing that excludes […]

  Use the information below to answer the following question(s).   Beauty Supply Company manufactures shampoo. The supervisor has provided the following information and stated that standard costing is used for manufacturing, marketing, and administrative costs.     January February Beginning inventory 0 — Production 2,500 3,000 Sales 2,250 3,025   Other information:     Selling price   $20.00 Standard variable manufacturing cost/unit   $8.00 Standard variable market/admin. cost/unit   $4.00 Standard fixed manufacturing overhead cost/month   $40,000 Standard fixed market/admin. cost/month   $20,000 Budgeted denominator level per month (output units)   4,000   There were no beginning or ending […]