Depreciation of Machinery would not be an element of factory overhead? Select one: O a. True O b. False
Q: Which of the following is NOT included in material handling cost at a warehouse? O A. Labor O B.…
A: Material handling costs are a form of indirect costs being incurred in production activity. It means…
Q: Is the cost of disposing of hazardous waste materials result-ing from factory operations a product…
A:
Q: 6) Which of the following costs would be included as part of factory overhead? depreciation of plant…
A: Factory Overhead are Cost incurred in Manufacturing process which is not directly attributed to a…
Q: Overhead costs are underapplied if the amount applied to Work in Process is: O a. greater than…
A: Choice: cost of merchandise sold Clarification: At the point when overhead is under-applied and…
Q: If actual overhead is greater than applied manufacturing overhead, then manufacturing overhead is:…
A: Manufacturing overhead costs that have been allocated to units of a product over a given time are…
Q: a) What are the advantages of accumulating costs by departments or jobs rather than for the factory…
A: Cost: Cost can be defined as the cash and cash equivalent which is incurred against the products…
Q: Which of the following would not be classified as manufacturing overhead? Select one: a. property…
A: The profitability position of the company can be arrived from the income statement of the company…
Q: Which one of the following would not be classified as manufacturing overhead? O Indirect labor…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Which of the following costs is not a product cost? * 1 point a. Depreciation on the plant installed…
A: Production or product costs allude to the expenses acquired by a business from assembling a product…
Q: I. When Indirect Materials are requisitioned, the work in process account is debited II. One reason…
A: Last option is correct that is both statements are true.
Q: If manufacturing overhead has been over-applied, the adjusting entry will O increase cost of goods…
A: In case applied Overheads are not equal to actual overhead, it may lead to over-applied or under…
Q: cost and 'Depreciation on manufacturing equipment' is a 'depreciation on office equipment' is a…
A: Product Cost: All the manufacturing costs are categorized as product costs. Period Cost: All the…
Q: Which of the following would not generally be considered a fixed overhead cost? a. Straight line…
A: Fixed overhead costs are those fixed indirect expenses in the business which are incurred in the…
Q: Depreciation of Machinery would not be an element of factory overhead? Select one: a. True b. False
A: Factory overheads include all the indirect expenses incurred in the production process.
Q: Which of the following represents the accumulated costs of incomplete jobs? O a. None of the given…
A: Following is the answer to the given questions
Q: Which of the following would not be an element of factory overhead?
A: Factory Overhead are not direct cost like direct materials and direct labor however they are helpful…
Q: Two positions have normally been taken with respect to the recording of fixed manufacturing overhead…
A: Fixed manufacturing overheads: The cost which is incurred on the manufacturing of the product…
Q: Which of the following is not a product cost? O a. Indirect labour O b. Insurance on the plant Oc.…
A: Product costs are manufacturing costs that are related to production.
Q: Which would NOT be relevant in a make- or- buy decision? a) factory deprciation b) direct materials…
A: The cost can be classified into two categories i.e fixed cost and variable cost. The FIxed cost…
Q: Overhead costs are underapplied if the amount applied to Work in Process is: a. equal to actual…
A: Applied overhead costs are costs allocated or assigned to products on the basis of predetermined…
Q: Which of the following is not a product cost? O a. Insurance on the plant O b. Raw materials used O…
A: Product cost means the cost of producing one unit of finished goods. Period cost means the cost that…
Q: Which one of the following would not be classified as manufacturing overhead? Indirect labor Direct…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: What happens to overhead rates based on direct labor when automated equipment replaces direct labor?
A: Predetermined Overhead Rate: Predetermined overhead rate is a measure used to allocate the estimated…
Q: “Abnormal rework costs should be charged to a loss account, not to manufacturing overhead.”Do you…
A: Rework:Rework is that type of product that is not satisfy the ultimate needs of the consumer but by…
Q: Which of the following represents the accumulated costs of incomplete jobs? О а. None of the given…
A: The WIP (work in process) inventory refers to incomplete goods and materials and it includes the…
Q: Overhead costs are overapplied if the amount applied to Work in Process is: a. less than actual…
A: The overhead costs refer to the costs that are incurred in the operating and manufacturing process,…
Q: Which of the following costs would not be inventoriable? Indirect labor cost Office rent factory…
A: Inventoriable cost means the cost which will be considered while valuing the inventories. Only the…
Q: Which one of the following is an example of a discretionary fixed cost? a. The depreciation cost of…
A: A discretionary fixed costs are those fixed which are avoidable for some shorter period and these…
Q: nderapplied factory overhead results when? a. A plant is operated at less than its normal…
A: Factory overhead cost is charged on the basis of overhead rate. Such overhead rate is calculated by…
Q: Overhead costs are overapplied if the amount applied to Work in Process is: a. equal to actual…
A: The correct answer is Option b. Less than actual overhead incurred.
Q: Depreciation of a factory equipment is treated as ____, while deprecation of an automobile used for…
A: Manufacturing overhead is the indirect cost that is spent in the manufacturing process. Examples of…
Q: Which of the following is not an example of a cost that varies in total as the number of units…
A: Option a is correct. As the production happens there is usage of machinery which will increase the…
Q: Which one of the following is not an example of a committed fixed cost? O a. None of the given…
A: Introduction:- Fixed costs incurred irrespective of the manufacturing or sales level. Costs such as…
Q: Which of the following would not be classified as manufacturing overhead? a.indirect labor…
A: Product costs are the cost associated with the making of a product. They include direct materials…
Q: Which one of the following is not an example of a committed fixed cost? O a. The property taxes of…
A: Option c is correct.
Q: Depreciation of a factory equipment is treated as ____, while deprecation of an automobile used for…
A: Manufacturing overhead is the indirect cost that is spent in the manufacturing process. Examples of…
Q: Statement 1: Manufacturing overhead is an indirect cost with respect to units of product. Statement…
A: The manufacturing costs include of the product cost that are directly or indirectly related to the…
Q: Which of the following is a part of Prime Cost? a. Direct Labour b. Indirect Wages c. Rent of…
A: Prime cost includes all the direct costs such as direct material, direct labor, and direct expenses.…
Q: When materials are used as indirect materials, their cost is debited to Facotry or Manufacturing…
A: Factory or manufacturing overheads are all indirect cost incurred during production or manufacturing…
Q: Manufacturing costs would not include a. Sales salaries expense b. Indirect materials used c.…
A: Manufacturing cost is the cost incurred to manufacture goods. It is the cost incurred at factory.
Q: Which of the following is an example of a variable cost? a.Insurance on the production equipment…
A: Variable cost are those cost which changes according to the level of Production. In other words in…
Q: Why is the cost of idle time treated as manufacturing overhead?
A:
Q: Which of the following costs is not relevant when considering the closure of a department within a…
A: The decision to close a department is based on contribution and not on net profit /loss due to the…
Q: Which of the cost below is not classified as fixed cost? a) Depreciation of machine b)…
A: Fixed cost is the cost which remains fixed irrespective of actual production .
Q: Manufacturing costs that cannot be dassifled as either direct materials or direct labor are known as…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: For ABC Company, the most common treatment of under- or overapplied factory overhead is to close it…
A: The difference between applied overhead and actual overhead is known as underapplied or overapplied…
Q: Which one of the following is an example of a discretionary fixed cost? O a. The property taxes of…
A: Discretionary fixed cost means that cost which is up to our discretion whether to spent it or not .…
Q: The cost of inefficiencies caused by labour strikes is incurred in the cost of warehouse…
A: According to Para 16 of IAS 16 Property, Plant and Equipment, costs incurred that are directly…
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- If the factory overhead account has a negative balance, factory overhead is said to be: a.Underapplied B.Over-applied C.Undcrabsorbed D. In errorDepreciation of Machinery would not be an element of factory overhead? Select one: a. True b. Falsemcqs Which of the following is correct with respect to closing out overapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold? a The balance in the Work-in-Process account after allocation will be higher if the overapplied overhead is closed out by allocating it to all appropriate accounts. b Cost of Goods Sold will be lower if the overapplied overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold. c Operating income will be higher if all of the overapplied overhead is closed out to Cost of Goods Sold. d The balance in the Work-in-Process account after allocation will be the same under either method.
- Which of the following would not generally be considered a fixed overhead cost?a. Straight line depreciation (No); Factory insurance (No); Units of production depreciation(No)b. Straight line depreciation (Yes); Factory insurance (No); Units of production depreciation(Yes)c. Straight line depreciation (Yes); Factory insurance (Yes); Units of productiondepreciation (No)d. Straight line depreciation (No); Factory insurance (Yes); Units of production depreciation(No)The cost of inefficiencies caused by labour strikes is incurred in the cost of warehouse construction. True or not? Explain referring to the IAS 16 Property, Plant and Equipment (Paragraphs 21).Which of the following is part of factory overhead cost? a.depreciation of sales person's vehicle b.sales commissions c.depreciation of factory equipment and machines d.direct materials used
- Which would NOT be relevant in a make- or- buy decision?a) factory deprciation b) direct materials c) variable overhead d) direct laborRequirement 1. Classify each cost as value-added, non-value-added, or in the gray area between. a. Materials and labor for servicing machine tools b. Rework costs c. Expediting costs caused by work delays d. Materials-handling costs e. Materials-procurement and inspection costs f. Preventive maintenance of equipment g. Breakdown maintenance of equipment Requirement 2. For any cost classified in the gray area, assume 96% is value-added and 4% is non-value-added. How much of the total of all seven costs is value-added and how much is non-value-added? Compute the total cost for the value-added and nonvalue-added costs, then compute what percentage of the total is value-added and how much is non-value-added. Total percent Total cost of total costs Value-added % Non-value-added % Total costs Requirement 3.…When the amount of overapplied factory overhead is significant, the entry to close overapplied Factory Overhead will most likely require: a. A debit to Cost of Goods Sold b. Credits to Cost of Goods Sold, Finished Goods Inventory, and Work in Process Inventory c. Debits to Cost of Goods Sold, Finished Goods Inventory, and Work in Process Inventory d. A credit to Cost of Goods Sold
- For ABC Company, the most common treatment of under- or overapplied factory overhead is to close it to; a.Work in process. b.Cost of goods sold. c.Finished goods. d.Retained EarningsWhich of the following is an example of a variable cost? a.Insurance on the production equipment b.Direct materials c.The production supervisor's salary d.Depreciation of the factory building e.None of theseStatement 1: Manufacturing overhead is an indirect cost with respect to units of product. Statement 2: Depreciation on office equipment would be included in the cost of goods manufactured. Statement 3: Rent on factory building used in the production process would be classified as a period cost and as a fixed cost. Statement 4: The amount that a manufacturing company could earn by renting out unused portion of its warehouse is an example of an opportunity cost. Statement 5: Internal failure costs result from identification of defects during the appraisal process such as scrap, rejected products, rework and downtime. a. All statements are true b. Statements 1, 3 and 5 c.Statements 1, 2 and 4 are true are true d. Statements 1, 4 and 5 are true e.Statements 2, 4 and 5 are true f. Statements 2, 3 and 4 are true