38) A predetermined overhead rate is calculated by dividing actual overhead cost by the actual amount of a cost driver used in the process.

Q: In tabular form, provide 3 similarities between activity based costing method and traditional method…

A: Activity based costing and traditional costing are two important methods used to allocate the…

Q: Which of the following does NOT form a part of Total cost? A. Production overheads B. Factory…

A: Total cost involves all the cost incurred in order to reach a particular level of output.

Q: The appropriate calculation of the predetermined overhead rate is _________. A. Actual overhead…

A: Pre determined overhead rate is used to apply manufacturing overhead cost to Job or process.

Q: 1. Which of the following are period costs? Raw materials Direct materials and direct labor Direct…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: What does the following statement mean? “Accounting for overhead involves an important costbenefit…

A: Overheads are typically accounted by accumulating costs and dividing the total costs by the total…

Q: Indirect materials and indirect labour are classified as: O a. manufacturing overhead and product…

A: Costs that are not traced to the product directly are known as indirect costs. These costs are…

Q: a. How is a predetermined factory overhead rate calculated?b. Name three common bases used in…

A: a.

Q: Which one of the following is not correct regarding the predetermined overhead rate? O a. The…

A: The predetermined overhead rate is used to allocate manufacturing overhead costs during current…

Q: 1. Indirect labor and indirect materials are classified as O manufacturing overhead and product…

A: Indirect Material: Material which don't become integral part of Product produced is known as…

Q: What is the formula to compute the predetermined overhead allocation rate?

A: Predetermined Overhead Rate: Predetermined overhead rate is a measure used to allocate the estimated…

Q: Why factory overhead is computed based on direct labor?

A: Refer Step 2 for explanation

Q: In what way does the accounting treatment of direct materials and direct labor costs differ from…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: What is a predetermined overhead rate, and what is it used for?

A: A overhead  is an indirect  expense  incurred  to operate the  organization

Q: For the purpose of calculating overapplication or overapplication of overheads, the applied…

A: In cost accounting, budgeting plays a key role in the control of the cost of the goods in the…

Q: Predetermined overhead rates are calculated: O a. based on estimated total manufacturing overhead…

A: Hi student Since there are multiple questions, we will answer only first question. If you want…

Q: Which one of the following is correct regarding the predetermined overhead rate? O a. The…

A: Predetermined overhead rate is that rate of allocation which is applied to estimate cost of…

Q: You have to find out the under or over valued Manufacturing overheads for the company A and B while…

A: Formula: Over Valued MOH: Applied MOH>Actual MOH Under Valued MOH: Applied MOH<Actual MOH

Q: Overhead costs are assigned to each product based on ________.A. the proportion of that product’s…

A: Overhead is a term used to describe ongoing business expenses that are not directly tied to the…

Q: Which of the following is not used in assigning manufacturing costs to work in process inventory?a.…

A: Overheads are the costs that are incurred to run a business. Some of the overheads are rent,…

Q: Required: a. Compute the total overhead cost. b. Compute the total product cost.

A: Overhead is the indirect expenses of manufacturing the product.  Total product cost includes all…

Q: How do you calculate the predetermined overhead rate do you have an example

A: An allocation rate used to estimate the manufacturing costs is termed as predetermined overhead…

Q: Which of the following would be both a prime cost and a conversion cost? direct labor direct…

A: Process costing: Process costing is included costs like labor, material, and overhead which…

Q: Please explain:: What is the purpose of an overhead rate What are the steps to apply the overhead…

A: Requirement 1:   The overhead rate is used to allocate the indirect cost to the direct costs being…

Q: Explain how overhead is assigned to production when a predetermined overhead rate is used?

A: Overhead is kind of cost or expenditure which is not directly related to manufacturing but somehow…

Q: How is the predetermined overhead allocation rate used to allocate overhead?

A: Predetermined Overhead Rate: Predetermined overhead rate is a measure used to allocate the estimated…

Q: Required: Detemine the direct and indirect labor cost and allocate the labor costto each cost…

A: The cost paid to the labors for performing the work in the organization is known as labor cost. It…

Q: When calculating the predetermined manufacturing overhead rate, what is the correct basis of…

A: A predetermined manufacturing overhead rate is used to allocate the overhead to the particular…

Q: Compute the Manufacturing Overhead Applied to Jobs;

A: Overhead cost allocation: It is the process of allocating the estimated overhead of a company to its…

Q: Would you expect the amount of applied overhead for a period to equal the actual overhead costs of…

A: Actual overhead: The actually occurred indirect manufacturing cost is called actual overhead.…

Q: Applied overhead consists of which of the following?     a. actual activity times predetermined…

A: Predetermined overhead rate = Estimated overhead / estimated activity

Q: hat approach allocates overhead by multiplying a predetermined overhead rate × actual activity?

A: The total cost incurred on the product helps the management to decide the margins.

Q: How would the process-costing computations differ from those illustrated in the chapter if overhead…

A: Process Costing: It is a method of cost accounting used by an enterprise with processes categorised…

Q: 1.The overhead absorption rate used to allocate manufacturing overhead is calculated by: Select…

A: overhead absorption rate used to allocate manufacturing overhead is determined on basis of cost…

Q: 4. Which of the following are period costs? a. Raw materials b. Direct materials and direct labor c.…

A: A period cost is charged to expense to the period in which it is incurred.

Q: Define the following: (a) direct materials, (b) indirect materials, (c) direct labor, (d) indirect…

A: Cost:   Cost can be defined as the cash and cash equivalent which is incurred against the products…

Q: The predetermined overhead rate is:

A: Predetermined overhead rate = Total Fixed overhead cost/Total Estimated labour hours The…

Q: Choose the three components of product cost from the list below.   a) Indirect material, direct…

A: Product costs seem to be the expenses involved in the production of goods that have been meant for…

Q: 1. Overhead is most often applied to production on the basis ofa. direct labor hours.b. machine…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: When and how to calculate the predetermined overhead rate?

A: Predetermined overhead rate can be defined as the allocation rate that is used to apply…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.