Describe the overtime-premium categories of indirect labor.

Q: The total absorbtion rate used to allocate manuafcturing overhead is calculated by?

A: The absorption rate is allocated using the different allocation bases Direct labors hours Direct…

Q: What is the difference between a product cost and a period cost?

A: Product costs: Product costs are the costs which are incurred in the production of the goods. These…

Q: Conversion costs are: A. direct material, direct labor, and manufacturing overhead. B. direct…

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

Q: Direct labor is included in the computation for the cost classified as     Group of answer choices…

A: Prime cost = Direct material + Direct labor Product cost = Direct material + Direct labor +…

Q: Describe fixed manufacturing overhead under absorption costing.

A: Absorption costing: Under this method, manufacturing cost such as direct material and labor is…

Q: Define indirect labor.

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

Q: Conversion costs include A. product and period costs B. direct labor and manufacturing overhead…

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

Q: Which of the following is not a prime cost? O Supervisor's wages Direct labor wages Assembly line…

A: Prime costs is a company’s expenses which is directly related to the production process like  the…

Q: How is the predetermined overhead allocation rate determined?

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

Q: Define the following: direct material costs, direct manufacturing-labor costs, manufacturing…

A: Direct Material Costs: It includes cost of direct materials used in manufacturing of finished goods.…

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 a predetermined overhead rate, and how is it computed?

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

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 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 ?

A:

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: Direct labor

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

Q: Explain the benefits of using a predetermined overhead rate instead of an actual overhead rate.

A:

Q: Under an activity based costing system, what is the per-unit overhead cost of Z

A: Activity based costing is a management accounting technique which used to allocate overhead cost and…

Q: Wages paid to a labourer who is engaged in production activities should be classified as: a) direct…

A: Cost refers to the amount incurred in return for goods or services.

Q: Assume that a c direct labor cha

A: Job cost is the cost incurred for a particular job work. It includes those expenses which are…

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: 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 arguments in favor of treating fixed manufacturing overhead costs as period costs?

A: Period costs: Period costs are the costs other than the product costs. These costs are not incurred…

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: All manufacturing overhead costs that occur must be recorded as a(an) O Liability O Equity O Expense…

A: Overheads are considered as fixed and common expenses that should be allocated to the products on…

Q: Calculate the actual fixed production overheads f

A: We know that as per  Actual Overhead = Budgeted Overhead  Budgeted Overhead absorption rate per unit…

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

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

Q: fixed costs (F), variable costs (V), or mixed costs(M).

A: Fixed cost - Fixed cost remains constant irrespective of the level of activity. It is an unavoidable…

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: Which does not belong to a category? * a. Labor b. Materials c. Overhead d. Purchases

A: Answer: Purchase

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: 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 adjustment is made for underapplied overhead on the schedule of cost of goods sold? What…

A: Overhead cost: The costs other than the direct costs such as insurance, interest, repairs, taxes…

Q: Define fixed overhead costs.

A: Definition:   Manufacturing Overheads: The cost which is indirectly related to the production is…

Q: When trying to identify product and period costs, is cash, work inprocess, and raw materials…

A: Product cost:The product cost relates to the manufacturing costs such as direct material, direct…

Q: If the actual overhead costs incurred are in excess of the applied overhead costs, the difference is…

A: Gross margin is calculated by deducting the expenses from the revenues of the company. It is…

Q: When overtime is worked at the request of the customer due to urgency of work and customer agrees to…

A: Indirect Cost-: Indirect costs are costs that are not directly liable to an expense object. Indirect…

Q: PLEASE DESCRIBE A FIXED TOTAL COST CONTRACT

A: There are many types of contracts such as Fixed total cost contract, cost plus contract, Item rate…

Q: How do you calculate the activity rates for overhead activity

A: The activity based costing is used to estimate tonthe total manufacturing cost including overhead…

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: 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: 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…