Describe three alternative ways to dispose of under- or overallocated overhead costs.

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: In tabular form, provide 3 similarities between activity based costing method and traditional method…

A: Activity based costing and traditional costing are two important methods used to allocate the…

Q: List at least two positive and two negative features of standard costing systems.

A: Standard Costing:   It is an accounting system that is used by organization to identify the…

Q: Identify the two types of costs that make upa product’s total cost.

A: Product costs are costs that are incurred to form a product that's supposed available to customers.…

Q: Which of the following is false about actual overhead while using normal costing?

A: In  normal cost system, Unit cost is determined  by adding actual direct materials, actual direct…

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: Explain the treatment of over and under absorption of overheads in cost accounts?

A: Overheads: These are defined as the expenses incurred in relation to an ongoing business. These are…

Q: The three major cost components of manufacturing a product are a. Direct materials, direct labor,…

A: Definition: Manufacturing cost: The cost incurred in the production process of the finished product…

Q: The appropriate calculation of the predetermined overhead rate is _________. A. Actual overhead…

A: Pre determined overhead rate is used to apply manufacturing overhead cost to Job or process.

Q: Explain the differences of single overhead rate; multiple overhead rate and activity based costing.…

A: Single, multiple overhead rate and activity based costing are methods to allocate cost to the…

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: How is the distinction between direct and indirect costs handled differently under volume-based…

A: Activity-based costing: It is a method that helps in finding the activities performed by a company…

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

A:

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: 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: Under-allocated manufacturing overhead costs are always the result of which of the following…

A: Under Allocated manufacturing overhead occurs when Applied overhead are less than the actual…

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: 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: What are the three common approaches for assigning overhead costs to products?

A:

Q: What are the three major ways in which activity-based costing improves the accuracy ofproduct costs?

A: Activity based costing is a system in which costs are allocated to the products on the basis of…

Q: Which of the following is most likely to be true of the manufacturing overhead costs assigned to a…

A: Answer: Option (a) is the correct answer. An ABC system will assign more manufacturing overhead…

Q: Give five examples of manufacturing overhead costs. Why are they considered indirect costs?

A: Definition: Manufacturing overhead costs: The costs which does not relate directly with the…

Q: What are the justifications for using practical capacity as the denominator volume when…

A: Fixed cost volume variance: The fixed cost volume variance is the difference between the budgeted…

Q: Explain the difference between under-allocated overhead and over-allocated overhead. What causes…

A: Overhead is applied using estimated or budgeted overhead and a base. Actual overhead costs are…

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: All of the following are names for the product costing method in which both fixed and variable costs…

A: Cost can be defined as the amount of value of work incurred for the performance of services or for…

Q: Explain the major reasons for allocating costs.

A: The entity allocates its cost by using a different measure. The cost that is allocated is common and…

Q: What are the three primary cost flow assumptions? How does the specific identification method differ…

A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…

Q: Explain the difference between  - Absorption and Marginal Costing

A: The Question has covered the concept of Absorption and Marginal Costing. Absorption Costing The…

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: :Under activity-based costing, the process of assigning costs to cost objects is called First stage…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: What is absorption costing and marginal costing in the context of overhead costs? Discuss the…

A: The difference between Absorption Costing and Marginal Costing is discussed hereunder :

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: Underallocated overhead occurs when: A) allocated overhead costs are less than actual overhead…

A: 1. Under allocated overhead - When actual manufacturing costs are more than allocated cost. 2. Over…

Q: :Under activity-based costing, the process of assigning costs to cost objects is called First stage…

A: Activity-Based Costing:- It is a method of assigning overhead and indirect costs such as salaries…

Q: Which of the following is NOT correct about the classifications of costs? Select one: a. On the…

A: Costs in the business can be classified into different types like on the basis of time, on the basis…

Q: Please briefly describe (1) the three main differences between the traditional overhead allocation…

A: Overhead refers to the number of indirect expenses incurred during the production of products in the…

Q: Under variable costing, a unit of product includes which costs? A. direct material, direct labor,…

A: Variable costing: In the process of variable costing the fixed manufacturing overhead are not to be…

Q: Why are fixed-overhead costs sometimes called capacity-producing costs?

A: Overhead costs Overhead cost or overhead expenses refer to the cost which is used to increase the…

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.