Explain how fixed manufacturing overhead costs are shifted from one period to another under absorption costing.

Q: The advantage of this cost assignment method is that actual cost for materials and labor and…

A: The budgeted costing prepares the budgeted on basis of the estimated cost The standard costing uses…

Q: Unit-based product costing assigns direct labor, direct materials, and overhead to products. Direct…

A: 1 a: Estimated overhead = $720,000 Estimated Direct labor hours = 180,000 Predetermined overhead…

Q: Describe fixed manufacturing overhead under absorption costing.

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

Q: In a manufacturing company using absorption costing, the fixed costs associated with idle production…

A: The question is related to the Absorption costing.

Q: Describe the two-stage allocation process for assigning support service costs to products in…

A: The method involves identifying and allocating costs to multiple cost objects known as cost…

Q: What is the basic difference between absorption costing and variable costing?   What are the…

A: Product costs are those kinds of costs which is related to the procedure of production directly like…

Q: What is an overhead consumption ratio? What is activity-based product costing? Explain how costs are…

A: Overhead consumption ratio: The overhead consumption ratio simply estimate the proportion of each…

Q: lculate the overhead allocation cost per product using traditional absorption costing based on…

A: Solution : Requirement 1 Overhead allocation cost per product using traditional costing based on…

Q: Explain in simple terms the notion of equivalent units of production (EUP). Why is it necessary to…

A: Process costing: It is a type of costing method, where the direct costs are accumulated and indirect…

Q: In process costing by-product is defined as; a. A product produced at the same time as other…

A: While we put raw material in any process there are various products which can be derived. Some of…

Q: Explain why standard costing is more suitable for controlling the cost of unit-level activities

A: Standard costing is a cost accounting method in which predetermined levels of sales, production,…

Q: Which of the following items is not a characteristic of a process cost system? The products produced…

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

Q: Describe the distinctive characteristic of weighted-average computations in assigning costs to units…

A: Weighted Average Method: Weighted average method is the method in which per-unit cost is calculated…

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: What process is used to assign costs in an ABC system? Provide numerical example. I want the…

A: ABC  or Activity based costing system- It is  based upon the  fact that activities cause costs and…

Q: 1. Which of the following characteristics applies in process costing but not to job order costing?…

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

Q: Under full absorption costing, which of the following are included in product costs? Only variable…

A: The absorption costing system is also known as the full costing system. It is allowed to be used by…

Q: According to the activity-based costing system, the average cost of product YBY is closest to

A: Average cost is the component of cost accounting which accumulates all the cost and determine the…

Q: Define manufacturing overhead costs with an example?

A: All manufacturing costs that are related to the production cost, but that is not directly related…

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

A: Activity-based Costing which is more popularly known as the ABC method is an accounting method in…

Q: Absorption Costing approach

A: Absorption costing refers to method of accounting in which the cost of manufacturing are absorbed by…

Q: Explain the main conceptual issue under variable costing and absorption costing regarding the timing…

A: Variable Costing:   The variable costing is a method used to allocate the fixed manufacturing…

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 why the fixed manufacturing overhead cost per unit changes when there is a change in the…

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

Q: Which statement is accurate concerning the FIFO method for assigning costs in a process costing…

A: The correct answer is Option (a).

Q: How much fixed overhead cost is included in ending finished goods inventory under absorption…

A: Absorption costing considers the fixed overhead costs for production as per the units sold and not…

Q: Briefly explain how a traditional, volume-based product-costing system operates.

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: Explain why a manufacturer’s cost of supervising production might be a step-fixed cost.

A: Step-fixed costs: Step-fixed costs remain fixed over a wide range of activity but it jumps to a…

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 is adjustment necessary for under and over absorption of overheads in the absorption costing…

A: Here discuss about the details of adjustment which are needed for the over and under absorption of…

Q: Explain equivalent units. why are equivalent-unit calculations necessary in process costing?

A: Each and every equivalent unit involves physical quantities of direct materials or conversion costs…

Q: Which statement is accurate concerning the FIFO method for assigning costs in a process costing…

A: FIFO method is basically used for calculating the value of inventory at the end of an accounting…

Q: Process costing is a term used in cost accounting to describe one method for collecting and…

A: The scrap value of an abnormal loss is credited to the process account is false. The scrap value of…

Q: Required:   Please identify which of the above statements are false and explain the reasons.

A: The scrap value of an abnormal loss is credited to the process account is false. The scrap value of…

Q: Describe weighted average method under process costing.

A: Process Costing: Process costing is method of cost accounting in which all the costs that are…

Q: During production how are the costs in process costing accumlated.

A: Process costing system is a costing system in which product goes through various processes to…

Q: Specify the advantage of the weighted-average method of process costing in contrast to the FIFO…

A: Process Costing: Process costing is a costing system of accounting methodology that accumulates…

Q: Which costing method is likely to provide the most accurate product cost? a. Volume-based costing…

A: Option d is correct.

Q: What is the overhead cost per product, under traditional costing? Predetermined Overhead Rate =…

A: Tri-Bikes Traditional Costing: Predetermined overhead = Estimated total overhead / Estimated total…

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.