Assume the Following Sales Data for a Company $$\begin{array} { l r } 2012 & \$ 945,000 \\2011 & 845,000 \\2010 & 650,000\end{array}$$

question 35

Multiple Choice

Assume the following sales data for a company: $$\begin{array} { l r } 2012 & \$ 945,000 \\2011 & 845,000 \\2010 & 650,000\end{array}$$ If 2010 is the base year, what is the percentage increase in sales from 2010 to 2011?

• A)23%
• B)30%
• C)77%
• D)130%

Determine the amount of overhead applied to specific jobs based on departmental rates.

Calculate total manufacturing overhead for specific jobs or departments.

Calculate total job cost including material, labor, and overhead.

Apply markup to manufacturing cost to establish selling prices.

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Definitions:

Direct Materials Cost Variance

The difference between the budgeted cost of materials and the actual cost incurred for materials used in production.

Standard Materials Cost

The budgeted or estimated cost of raw materials required for production, used for cost control and variance analysis.

Material Used

The raw materials that have been consumed in the production process to create goods.

Total Labor Cost Variance

This refers to the difference between the actual labor costs incurred and the standard labor costs for the actual production levels.