Describe the  idle-time categories of indirect labor

Q: What is the predetermined overhead allocation rate?

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Q: Distinguish between direct labor and indirect labor.

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Q: Define indirect labor.

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

Q: Explain why equivalent units of production for both direct labor and overhead can be the same as,…

A: Equivalents units of production (EUP): Equivalents units are a measure of the work done during an…

Q: How is the predetermined overhead allocation rate determined?

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

Q: how do I find total over- or underapplied fixed manufacturing overhead?

A: Overhead: Overhead refers to the costs, which are utilized in business activities, however cannot be…

Q: What is a predetermined overhead rate, and how is it computed?

A: Predetermined overhead rate: Predetermined overhead rate is calculated befor the period begins. This…

Q: Why is industrial overhead calculated using direct labor

A: This question explains about  industrial overhead that which is  using direct labor:

Q: Define the terms under-allocated and over-allocated overhead. What factors contribute to each…

A: Expenses associated with manufacturing overhead: "Manufacturing overhead costs, also known as…

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: What is included in indirect materials and indirect labor ?

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Q: How is predetermined overhead rate established? How is it used to apply overhead?

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Q: Direct labor

A: Direct labor costs incurred = Total manufacturing costs - Direct materials used - Factory overhead

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: 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: In what way does the accounting treatment of factory overhead differ from that of direct materials…

A: Factory overheads include all indirect costs incurred during the manufacturing process to maintain…

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: 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: Overhead costs are underapplied if the amount applied to Work in Process is:

A: Overheads: Overheads refer to the business expenses incurred by the company which might be directly…

Q: What are the differences between Underapplied Factory Overhead and Overapplied Factory Overhead?

A: Overhead: Overhead cost means expenses referred to indirect cost. The overhead cost like rent,…

Q: An example of labor-related costs is:   bonus pay factory labor fringe benefits operating expense

A: The labor costs include the wages and salaries paid to employees.

Q: Is manufacturing overhead cost given to tasks based on a precise determination of each job's…

A: Concept: Generally, overhead costs in the manufacturing industry are assigned based on a predefined…

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: Explain how fixed manufacturing overhead costs are shifted from one period to another under…

A: Absorption Costing:   It is a type of costing where all the manufacturing costs are absorbed by the…

Q: What is meant by the term overhead application rate ?

A: Overhead: It refers to an ongoing or continuing expense that is centrally incurred by a company in…

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: Should design of cost be in factory overhead? Explain why

A: Factory overheads are the costs related to the manufacture of the goods.

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: In a process cost system, conversion costs consist of direct material and direct labor * O Ture…

A: Cost accounting is the process of estimating the cost of production in a business. Cost accounting…

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: What are non-unit level overhead activities? Non-unit based cost drivers? Give some examples.

A: Under Activity-based costing, different overhead activities are identified and the cost of all such…

Q: Why are overhead costs allocated to products and not traced to products as direct materials and…

A: Given: The allocated overhead cost of products is not traced as direct materials to products.

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: In what way does the accounting treatment of factory overhead differ from that of direct materials…

A: Factory overhead is defined as cost incurred during the process of manufacturing but not including…

Q: How do you explain the phrase," Fixed overheads consist of costs which are not subject to change…

A: The costs incurred on the production are distinguished as fixed and variable cost.

Q: Why is the cost of idle time treated as manufacturing overhead?

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Q: per direct labor hou

A: Sollution:- Predetermined shop overhead rate:-                                           =…

Q: Which one of the following would not be classified as manufacturing overhead? a Indirect labor b…

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

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: In a process costing system, manufacturing overhead applied is usually recorded as a debit to______?

A: Process costing system is a system of costing which shows the cost incurred in each process with…

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 a predetermined overhead rate?

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

Q: What is the difference between direct materials, indirect materials, direct labor, and indirect…

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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.