Question - Kolb Company prepared its income statements for the current year using three alternative cost accounting systems as follows:
Required: Explain your answers to the following questions:
a. Match the following cost systems with alternatives A, B, and C: (1) standard full cost system; (2) actual absorption cost system; and (3) actual variable cost system.
b. How much, if any, of the factory overhead cost was variable?
c. What was the actual factory overhead cost incurred for the year?
d. What was the nonfactor costs incurred for the year?
e. What percentage was actual factory volume for the year to normal factory volume?
f. Which of the alternative statements was not prepared in accordance with generally accepted accounting principles?
g. How did actual direct material cost compare with planned direct material cost?