Define labour time record.

Q: Distinguish between direct labor and indirect labor.

A:

Q: Define indirect labor.

A: Labour are those people who are engaged in the organisation either for the purpose of production or…

Q: where the line is drawn between direct and indirect labor, is direct labor at an employee level or a…

A: Direct Labour is labour or workers that are directly engaged in production of goods. Indirect labour…

Q: Which of the following statements related to job cost sheets is TRUE?

A: Job cost sheet:- Job cost sheet is the sheet that is prepared by manufacturing industry companies.…

Q: How is the predetermined overhead allocation rate determined?

A: Predetermined overhead allocation rate: Predetermined overhead refers to the allocation rate that is…

Q: What are the purposes of the following documents:(a) material requisition form, (b) labor time…

A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With…

Q: What information is presented on a job cost sheetand what is its purpose?

A: Job Costing: Job costing is a way of accounting that is meant to assist you in keeping track of the…

Q: Specific employee earnings, withholdings, and pay detail to include hours worked, gross pay, net…

A: The employees are paid by the employer for the work done by him. Each payment made are recorded by…

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: Define the term completion of job.

A: Completion of work means that the Project/Works have been completed  operationally and structurally…

Q: Describe important features of job order production.

A: Job Order Production That particular method of production where the order is made according to…

Q: Distinguish between customer-response time and manufacturing cycle time.

A: Customer response time: Customer response time is the time lag between the receipt of an order and…

Q: What is the actual total overhead for the period?

A: Solution:- Given, Applied fixed overhead based on standard direct labor hours allowed = $50,000…

Q: Define the term job-costing.

A: Cost accounting system:   Cost accounting system can be defined as a framework designed by the…

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

A: Refer Step 2 for explanation

Q: What is the purpose of the job cost sheet in a job-order costing system?

A: Job order costing system is an accounting system which is applied when unique batches of goods and…

Q: the total labour cost associated with the maintenance activity.

A: Given: Total number of annual hours = 2000 hoursBenefit ratio = 0.2 Labour rate per hour = $15…

Q: Define Work-in-process inventory.

A: Definition:   Inventory refers to the raw materials, work-in-process, and the finished goods…

Q: Manufacturing overhead is

A: Predetermined overhead application rate is  - (Estimated overhead costs)/(Total Direct labours) Note…

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: Define unit cost of a job.

A: Cost:   It is the economic value incurred by an organization for manufacturing the products or…

Q: Which account is used in the job order cost system to accumulate direct materials, direct labor, and…

A:

Q: What is the purpose of a job cost record?

A:

Q: How much is Work in Process-Direct Labor?

A: Payroll The process of payroll to calculate the total labor hours which are included in the time…

Q: how to allocate manufacturing overhead by department?

A: Manufacturing overhead costs: The costs, which do not relate openly with the manufacturing of…

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

A: The manufacturing overhead are applied to production on the basis of estimated activity rates.

Q: What information is presented on a job cost sheet and what is i

A: A job cost sheet tracks the job number, information about the customer, and the job. This includes…

Q: Indicate the source documents that are used in charging costs to specific jobs?

A: A Source document is an original record that contains overall information to validate a transaction…

Q: Preparing a summary journal entry to record allocation of manufacturing overhead

A: Preparation of a summary journal entry to record allocation of manufacturing overhead. We have,The…

Q: Means schedule curve establishe work pay item represented by ba

A: s-curve is a graph that plots a relevant cumulative data field- such as man hour or cost-against…

Q: Describe the types of manufacturing overhead.

A: Manufacturing Expenses or Overhead are the indirect type of costs that a business incurs for a…

Q: What events cause debits to be recorded in the Factory Overhead account? What events cause credits…

A:

Q: How is the unit product cost of a job calculated?

A:

Q: How to compute manufacturing overhead?

A: In order to manufacture the product, various indirect expenses are incurred such as indirect…

Q: . How do the relationships between the balance sheet,  income statement, job cost ledger, and…

A: A balance sheet is a financial statement which shows a company's assets, liabilities, and…

Q: Determine the amount of underapplied or overapplied manufacturing overhead for the period.

A: We can get to understand underapplied or overapplied manufacturing overhead by assuming some…

Q: Is Manufacturing Overhead cost allocated to jobs by precisely identifying the overhead cost of each…

A: Manufacturing Overhead Costs are allocated generally on the basis of predetermined overhead rates.…

Q: What is a predetermined overhead rate?

A: Overhead Cost: Overhead cost is the expense incurred in the operations of a business. This expense…

Q: How does the use of direct and indirect materials in production affect the accounts?

A: Step 1: Direct materials are the raw materials that are used directly in the process of production.…

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…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.