Furniture Co.incurred the Following Costs During 2010

question 45

Multiple Choice

Furniture Co.incurred the following costs during 2010:
What was the amount of direct materials and direct labor used for the year?

• A)A
• B)B
• C)C
• D)D = Labor + $115,000 = $240,000;Labor = $125,000.Materials + $125,000 = $210,000 = Prime Costs.Materials = $85,000

Analyze and calculate overhead variances, including spending, efficiency, and volume variances.

Interpret the financial impact of actual performance versus planned (budgeted) performance.

Determine sales variances, including sales price and sales volume variances.

Understand the computation and significance of absorption rates in standard costing.

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Definitions:

Discount Recognized

The process of recording in the financial accounts the discount received or given on transactions, affecting the actual value recorded.

Periodic Inventory System

An inventory accounting practice where physical counts are performed at specific intervals to determine the cost of goods sold and ending inventory levels.

Voucher System

A method for processing accounts payable where a document (voucher) is prepared for every payable transaction, detailing the goods or services received, amounts to be paid, authorization, and accounts to be charged.

Net Method

An accounting method for recording purchases at the net of any trade discounts or rebate.