How are overhead expenses allocated to particular departments?           A.  Strictly based on floor space          B.  Based on a ratio of space to sales volume          C.  Strictly based on sales volume              D. By floor space or sales volume

Q: The reason for charging indirect costs to cost centres is to: A. Calculate the cost of direct…

A: Lets understand the basics. Indirect costs are cost which are not directly related to product or…

Q: A debit balance in Overhead Control: a. indicates applied overhead exceeds actual overhead. b.…

A: OVERHEAD ARE ALL COSTS ON THE INCOME STATEMENT EXCEPT THE DIRECT MATERIALS , DIRECT LABOR AND DIRECT…

Q: Overhead allocation based solely on a measure of volume such as direct labor-hours:   A. is a key…

A: The allocation of overhead is the process of applying the indirect cost of manufacturing to the…

Q: Why should an employee have some understanding of costing if they are not in the accounting…

A: Costing may be defined as, ''The techniques and processes of ascertaining costs''. It may further be…

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 is a common fixed cost to the salesdepartments in a department store?a.…

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Q: Compute for the total cost transferred to the next department using average costing.

A: Equivalent units of products concept came in to existence when some units are not fully completed at…

Q: (a) a physical flow schedule, (b) an equivalent unit calculation, (c) calculation of unit costs…

A: Physical Flow schedule a. Units to account for: Resultant Table:

Q: Identify the following as fixed costs (F), variable costs (V), or mixed costs(M). cost of goods…

A: Fixed costs are those costs which do not change with change in level of activity. Variable costs…

Q: A period cost includes all EXCEPT: Rental cost of administrative offices. b. Marketing. C. Salary of…

A: Period Cost:- It is a cost that is not related to the manufacturing cost of production or…

Q: If selling and administrative expenses are allocated to different products, they should be reported…

A: Period costs: These costs are not related to inventory, hence, they are not added to inventory…

Q: Quince, Inc. uses a process costing system. It prepares a production cost report for each processing…

A: The inventory account would be determined through the production cost report and then the balance of…

Q: Required: Compute for the total cost transferred to the next department using average costing. *…

A: The equivalent units are calculated on the basis of percentage of the work completed during the…

Q: For each cost pool, identify an appropriate cost driver. a. order department b. accounts…

A: Cost Driver: The direct reason for a cost is referred to as a cost driver. Fixed expenses do not…

Q: c) Calculate the balance in ending work in process and cost of goods sold before any adjustments…

A: Overhead cost allocation: It is the process of allocating the estimated overhead of a company to its…

Q: mcqs Which of the following is correct with respect to closing out overapplied manufacturing…

A: Manufacturing overhead means the cost which is indirectly related with the production . It has to be…

Q: Phoenix Company’s 2019 master budget included the following fixed budget report. It is based on an…

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Q: Required: 1. Determine the departmental contribution to overhead and the departmental net income for…

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Q: Allocation of Expenses to Departments Expense Account Bal. Purchasing Dept. Books Dept. Magazines…

A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…

Q: 1. Using the simultaneous method to allocate the service departments' costs to the producing…

A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

Q: Support department costs are:   Seldom found in manufacturing organizations. Reported as selling and…

A: Direct method of allocation: In direct method of allocation, companies assign support department…

Q: Need detail explanation Provide general discussion on predetermined variable overhead criterion and…

A: Variable costing income statement refers to the statement where all the variable expenses are…

Q: Need detail explanation Provide general discussion on predetermined variable overhead criterion and…

A: Variable costing income statement refers to the statement where all the variable expenses (VE) are…

Q: How would sales salaries be classified for a manufacturing company? Group of answer choices product…

A: Manufacturing company refers to the company which produces the finished goods from the RM (Raw…

Q: When calculating the predetermined manufacturing overhead rate, what is the correct basis of…

A: A predetermined manufacturing overhead rate is used to allocate the overhead to the particular…

Q: The direct method as used is one method that can be used to re-assign service department cost.…

A: Overhead refers to continuing business expenses that are not directly related to the production of a…

Q: Identify whether each of the following costs should be classified as product costs or period costs.…

A: Product Costs: Product Costs means the direct costs incurrend for production of a product. Product…

Q: The following is a partially completed lower section of a departmental expense allocation for Cozy…

A: Overhead costs are indirect costs related to either production or for selling of products. These…

Q: What is the measured mile approach used for? a. Calculate budget spent b. Measure office overhead c.…

A: The measured mild approach is a method used in calculating the control period with the help of labor…

Q: Provide general discussion on predetermined variable overhead criterion and its possible dependence…

A: Variable costing income statement refers to the statement where all the variable expenses (VE) are…

Q: Departmental overhead rates will correctly assign overhead costs in situations where a company has a…

A: Departmental overhead rates are used to assign overhead costs department wise. Here, overheads are…

Q: Which of the following entry is recorded when indirect materials are transferred to office dept.? a.…

A: Cost accounting means where every cost of doing business is recorded in necessary account and cost…

Q: Prime cost is the (Total )summation of Select one: a. Direct material +Direct Labour +Direct…

A: Prime cost refers to the total direct cost incurred by an entity on the production.

Q: ion: Sales Revenue Selling and Administrative Expenses Direct Labor Manufacturing Overhead; actual…

A: Direct materials Amiunt(4) Amount($) Beginning Raw materials inventory    0 Add material…

Q: Required: 1. Compute the amount of (a) production costs transferred from Cutting to Stitching, (b)…

A: Cost of Goods Sold=Finished goods inventory, Beginning+Goods added-Finished goods inventory, Ending

Q: REQUIRED: Determined the amount of factory overhead cost of service departments allocated to…

A: Activity-based costing is a costing method where the indirect cost is assigned to the jobs,…

Q: The direct method as used by Ultimate Manufacturers is one method that can be used to re-assign…

A: Service department costs are the indirect costs to units produced and therefore these are known as…

Q: Plantwide versus Department Direct Method. Bristol company uses the direct method in distributing…

A: Overheads are the indirect costs related to production or manufacturing of goods or things. base

Q: Manufacturing Overhead: Total payments for manufacturing overhead Selling and Administrative…

A: Part 1:

Q: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production…

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Q: The applied overhead is compared to the actual overhead, with any discrepancy going into one of the…

A: Under-applied overhead: When there is a debit balance in the manufacturing overhead account during…