income was substantially below the budgeted amount . There was no beginning or ending inventories . The most likely explanation for the income shortfall is that , compared to budget , actual
42 . A single-product company prepares income statements using both absorption and variable costing methods . Manufacturing overhead cost applied per unit produced in 2005 was the same as in 2004 . The 2005 variable costing statement reported a profit , whereas the 2005 absorption costing statement reported a loss . The difference in reported income could be explained by the units produced in 2005 being
43 . At the end of Killo Co .' s first year of operations , 1,000 units of inventory remained on hand . Variable and fixed manufacturing costs per unit were $ 90 and $ 20 , respectively . If Killo uses absorption costing rather than direct ( variable ) costing , the result would be a higher pretax income of
44 . Lynn Manufacturing Co . prepares income statements using both standard absorption and standard variable costing methods . For 2005 , unit standard costs were unchanged from 2004 . In 2005 , the only beginning and ending inventories were finished goods of 5,000 units . How would Lynn ' s ratios using absorption costing compare with those using variable costing ?
45 . A direct labor overtime premium should be charged to a specific job when the overtime is caused by the 46 . In a job cost system , manufacturing overhead is 47 . Birk Co . uses a job order cost system . The following debits ( credits ) appeared in Birk ' s work in process account for the month of April 2005 : Birk applies overhead to production at a predetermined rate of 80 % of the direct labor cost . Job No . 5 , the only job still in process on April 30 , 2005 , was charged with direct labor of $ 2,000 . What was the amount of direct materials charged to Job No . 5 ?
47 .
48 . A job order cost system uses a predetermined factory overhead rate based on expected volume and expected fixed