At the Beginning of 2013, Barcroft Co

question 26

Multiple Choice

At the beginning of 2013, Barcroft Co. estimated that its total annual fixed overhead costs would amount to $25,000. Further, Barcroft estimated that its volume of production would be 2,000 units of product. Based on these estimates, Barcroft computed a predetermined overhead rate that was used to allocate overhead costs to the products made in 2013. As predicted, actual fixed overhead costs did amount to $25,000. However, actual volume of production amounted to 2,200 units of product. Based on this information alone:

• A) Products were costed accurately in 2013.
• B) Products were overcosted in 2013.
• C) Products were undercosted in 2013.
• D) The answer cannot be determined from the information provided.

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Definitions:

Video Cards

A hardware component of a computer that processes and renders graphics output to the display screen.

RAM Storage

Temporary storage used by a computer to hold data that is actively being used or processed, making systems faster and more responsive.

Level 3 Cache

A type of cache memory in a computer's CPU that is larger and slower than L1 and L2 cache, but faster than main memory, used to reduce the average time to access data.

Level 1 Cache

A type of fast and small memory located within a computer processor to store instructions and data for quick access.