Assume that a c direct labor cha
Q: Explain what is Flow Cost Accounting, its nature.
A: Material flow cost accounting or flow cost accounting can be defined as a method used by firms and…
Q: Define the following concepts: a)Prime cost b) Non production cost
A: All costs incurred are categorised into production and non production cost on the basis of the…
Q: Relevant examples of direct and indirect costs
A: Relevant examples of direct and indirect costs.
Q: Define indirect labor.
A: Labour are those people who are engaged in the organisation either for the purpose of production or…
Q: ng overhead totali d direct materials t
A: Given: X Company reported total manufacturing costs of $300,000, manufacturing overhead totaling…
Q: How is the predetermined overhead allocation rate determined?
A: Predetermined overhead allocation rate: Predetermined overhead refers to the allocation rate that is…
Q: Compute the cost allocations to Dept. S and Dept. T under the reciprocal method: To T: S To S: S
A: Cost Allocation :— cost allocation is the process of assignment of cost in Different Department on…
Q: The one cost that would be dassified as part of both prirne cost and conversioncr wndctis Oa direct…
A: Prime cost = Direct material + Direct labor + Direct expenses Conversion cost = Direct labor +…
Q: What is meant by overheads? How are overheads classified? Give suitable examples
A: Overhead refers to the expenses a business incurs on a daily basis while operating its activities.
Q: Describe the idle-time categories of indirect labor
A: Overheads are the cost and the expenses a company incurs for the production of a particular goods or…
Q: What's predetermined overhead used for, and why?
A: A predetermined overhead rate is a rate that is used to apply the expected cost of manufacturing…
Q: How is predetermined overhead rate established? How is it used to apply overhead?
A:
Q: nount toward total overhead?
A: There are three department . Contribution to overhead is a amount of money that department has…
Q: Direct labor
A: Direct labor costs incurred = Total manufacturing costs - Direct materials used - Factory overhead
Q: Give an example of cost which is a part of unavoidable cost.
A: Unavoidable costs are costs which cannot be avoided by discontinuing a product line or which cannot…
Q: st nas offered to provide th ead cost above couldb
A: financial advantage: $4 per unit on average Explanation: total production cost $22 Direct…
Q: Label each of the following statements as either true (“T”) or false (“F”). Relevant costs are also…
A: Relevant costs: These costs can be defined as the costs that can be avoided if we choose over option…
Q: Product costs are also callec Direct costs. Overhead costs
A: Given: 1. Product costs are also called: *Direct costs.Overhead costs.Manufacturing overhead…
Q: to underapplied manufacturing overhead ds Soldu
A: Underapplied manufacturing overheads will be closed out by either debiting Cost of Goods Sold or by…
Q: Define the following concepts: a)Prime cost b) Non production cost c)Total cost
A: Cost is the monetary value of expenditures for raw materials, technology, supplies, services, labor,…
Q: costs were incurred durin erial (all direct) ead costs:
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: Overhead expenses can be classified according to O a. Functions O b. Elements Oc. All of the above O…
A: Overhead expenses are all indirect costs of manufacturing the product or selling the product. These…
Q: What is mean direct and indirect labor?
A: Cost of labor includes payments made to employees in the form of wages or employee benefits and also…
Q: Costs labor and uo o1ɔ IJed o O UoueAIm:
A: In this problem , Nelly Co. incurred a cost for plannting…
Q: Define the following concepts: a)Prime cost b) Non production cost c)Total cost
A: The term cost refers to the monetary value of expenditure for raw materials, technology, supplies,…
Q: Overhead assigned to KJ22 product?
A: Formula: Overhead assigned to Batches = Setting up batches x Number of batches
Q: What is underapplied overhead? Overapplied overhead?
A: The under applied overhead is explained as below,
Q: True or False. Direct costs can be specifically traced to a cost object.
A: Direct costs, as the name suggests are the costs that can be directly attributed to a cost object.…
Q: Describe the overtime-premium categories of indirect labor.
A: Over-premium labor cost is the indirect cost of labor paid for the extra time of work to the labor.
Q: Which does not belong to a category? * a. Labor b. Materials c. Overhead d. Purchases
A: Answer: Purchase
Q: What is meant by underapplied overhead? By overappliedoverhead?
A: Actual overhead cost: These are the indirect manufacturing costs that are actually incurred while…
Q: Give an example of cost which is a part of unavoidable cost.
A: Unavoidable fixed costs are fixed costs that cannot be avoided by discontinuing a product line or…
Q: Define the terms sunk cost and differential cost.
A: Differential cost: Differential cost is the change in total cost due to increase or decrease in…
Q: what are the two main factors that give to over/under absorption of overhead ?
A: When overheads are absorbed in a rate depending on actual data, the absorbed overhead should be…
Q: Define fixed overhead costs.
A: Definition: Manufacturing Overheads: The cost which is indirectly related to the production is…
Q: Explain the reporting for (a) costs to fulfill a contract and (b) collectibility.
A: Fulfillment costs are divided into two categories: (1) Those that arise from assets; (2) Those that…
Q: Y,a,b and X explain these with help of examples according to cost behaviour
A: Cost behavior analysis helps to understand the change in the total cost with respect to the change…
Q: s predetermined overhead rate f
A: Estimated total variable manufacturing overhead (A) $802,500 Estimated total fixed manufacturing…
Q: Explain the difference between a direct cost and an indirect cost.
A: Direct Cost: A direct cost is a cost that can directly be associated with a particular department or…
Q: per direct labor hou
A: Sollution:- Predetermined shop overhead rate:- =…
Q: Describe the overtime-premium and idle-time categories of indirect labor?
A: Over-premium labor cost is the indirect cost of labor paid for the extra time of work to the…
Q: What is your understanding about labor relation?
A: Labor relations seems to be the term used to describe the process through which employers and…
Q: Define under or over applied overhead.
A:
Q: Prime cost is:
A: Prime cost is the direct cost incurred in the process of manufacturing a product and typically…
Q: Conversion cost = Direct Labor + ______? a. Labor b. FOH c. Material d. None of these
A: Solution: Conversion cost = Direct Labor + ______? Correct answer is option b. FOH Explanation…
Q: Distinguish between direct material and indirect material.
A: Direct materials will be materials that are devoured during the creation of an item as either…
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- Coops Stoops estimated its annual overhead to be $85,000 and based its predetermined overhead rate on 24,286 direct labor hours. At the end of the year, actual overhead was $90,000 and the total direct labor hours were 24,100. What is the entry to dispose of the over applied or under applied overhead?Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?Event Forms expects $120,000 in overhead during the next year. It doesn't know whether it should apply overhead on the basis of its anticipated direct labor hours of 6,000 or its expected machine hours of 5,000. What would be the product cost under each predetermined allocation rate if the last job incurred $3,500 in direct material cost, 55 direct labor hours, and 55 machine hours? Wages are paid at $17 per hour.
- Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it should apply overhead on the basis of its anticipated direct labor hours of 60,000 or its expected machine hours of 30,000. Determine the product cost under each predetermined allocation rate if the last job incurred $1,550 in direct material cost, 90 direct labor hours, and 75 machine hours. Wages are paid at $16 per hour.The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of capacity the next month, will a different cost per unit be charged to the work-in-process account each month for factory overhead assuming that a predetermined annual overhead rate is used?
- Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hoursA company has the following transactions during the week. Purchase of $1,000 raw materials inventory Assignment of $500 of raw materials inventory to Job 5 Payroll for 20 hours with $1,000 assigned to Job 5 Factory utility bills of $750 Overhead applied at the rate of $10 per hour What is the cost assigned to Job 5 at the end of the week?Compute the total job cost for each of the following scenarios: a. If the direct labor cost method is used in applying factory overhead and the predetermined rate is 100%, what amount should be charged to Job 2010 for factory overhead? Assume that direct materials used totaled 5,000 and that the direct labor cost totaled 3,200. b. If the direct labor hour method is used in applying factory overhead and the predetermined rate is 10 an hour, what amount should be charged to Job 2010 for factory overhead? Assume that the direct materials used totaled 5,000, the direct labor cost totaled 3,200, and the number of direct labor hours totaled 250. c. If the machine hour method is used in applying factory overhead and the predetermined rate is 12.50 an hour, what amount should be charged to Job 2010 for factory overhead? Assume that the direct materials used totaled 5,000, the direct labor cost totaled 3,200, the direct labor hours were 250 hours, and the machine hours were 295 hours.
- During the month, Job AB2 used specialized machinery for 450 hours and incurred $500 in utilities on account, $300 in factory depreciation expense, and $100 in property tax on the factory. Prepare journal entries for the following: A. Record the expenses incurred. B. Record the allocation of overhead at the predetermined rate of $1.50 per machine hour.Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: The average shop direct labor rate is 37.50 per hour. Determine the predetermined shop overhead rate per direct labor hour.Inez has the following information relating to Job AA5. Direct material cost was $200,000, direct labor was $36,550, and overhead applied on the basis of direct labor hours was $73,100. What was the predetermined overhead rate using the labor rate of $17 per hour?