In service production businesses, production overheads are usually charged to services as an estimate.   ii. Production expenses in service production enterprises are followed in the accounts of 710. Direct Raw Material and Material Expenditures, 720. Direct Labor Expenses and 730. General Production Expenses. iii. Accounts 711, 721 and 731 are used in reflecting the production expenses to the sold service costs in service production enterprises.   Which of the following is true regarding the application of the order cost method in service production companies?      a) only ii  B) i and iii  NS) only i  D) ii and iii  TO) i and ii

Q: allocating manufacturing overhead

A: Overhead allocation rate(OAR) Estimated manufacturing overhead/Actual labor hours

Q: Use the following information for a manufacturer to compute cost of goods manufactured and cost of…

A: Cost of goods manufactured can be computed as follows

Q: Calculate the cost of goods manufactured if total manufacturing costs were $15,786, beginning work…

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

Q: Assume that a company uses a standard cost system and applies overhead to production based on direct…

A: Standard costing is a very important technique in setting out budgets for the all the costs and…

Q: Assume that the company uses the reciprocal method in distributing service department costs and that…

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

Q: Which of the following is not a factory overhead allocation method? a. factory costing b. multiple…

A: Solution 1: Following are the factory overhead allocation method: 1. multiple departmental rates 2.…

Q: Mac Manufacturing uses a predetermined overhead rate of P19.10 per direct labor hour. This…

A: First compute the overhead applied as shown below: Overhead applied is computed by multiplying the…

Q: Diane Company has the following details for March. Cost of Direct Material used in production…

A: Prime cost means the addition of direct material and direct labor and other direct expenses.…

Q: The following account balances are from Woods Corporation accounting records for the year ended…

A: The manufacturing overhead cost includes all the indirect cost and factory expenses.

Q: Sharp Company employs actual costing for its production. The entity provided the following data…

A: Cost of goods sold is credited to  the finished goods inventory. To calculate the Cost of goods…

Q: Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on direct labor hours…

A: Manufacturing Overhead Allocated = Actual Machine Hours x Predetermined Overhead Rate Predetermined…

Q: Selected cost data for Classic Print Co. are as follows: Estimated manufacturing overhead cost for…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: E1-10 Manufacturing cost data for Copa Company are presented below. Case A Case B Case C $ (a)…

A: (A)  $57,000 + $46,500 + (A) = $195,650  (A) = $92,150   (B) $195,650 + (B) = $221,500 (B) = $25,850…

Q: A company uses a standard costing system and applies overhead to production based on direct…

A: Standard costing means where standard is set for various cost element and actual cost is then…

Q: Wright Brothers is debating the use of direct labour cost or direct labour hours as the cost…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Assume that a company uses a standard cost system and applies overhead to production based on direct…

A: Standard hours per unit: 2 Hours Standard rate: $6.00 Standard cost: $12.00 Actual Fixed overhead…

Q: Wright Brothers is debating the use of direct labor cost or direct labor hours as the cost…

A: The manufacturing overhead is applied to production on the basis of predetermined overhead rate.

Q: The accounting records of Bass SARL contain the following information: Raw Materials Used: $68,479…

A: The cost of goods manufactured is the total value incurred for manufacturing the products. It is a…

Q: The following cost data relate to the manufacturing activities of the Kamas Company during the most…

A: The cost of goods manufactured is a calculation that is used to gain a general understanding of…

Q: Brown Brothers is debating the use of direct labour cost or direct labour hours as the cost…

A: Predetermined overhead rate = Estimated manufacturing overhead / Estimated direct labor cost =…

Q: Wright Brothers is debating the use of direct labour cost or direct labour hours as the cost…

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

Q: Brown Brothers is debating the use of direct labour cost or direct labour hours as the cost…

A: Predetermined overhead rate = $359,600 / 248,000 DLHs. Predetermined overhead rate = $1.45 per DLH.…

Q: Here are selected basic data for Wilson​ Company:   Estimated manufacturing overhead ​ $243,750…

A: Total of all indirect manufacturing costs incurred is the total actual manufacturing overhead costs.…

Q: The following costs and inventory data were taken from the accounts of Malik Company for the year…

A: The cost of goods manufactured refers to the total cost that is assigned to the products. It…

Q: the company allocates overhead based on direct labor​ cost, what are the total actual manufacturing…

A: Manufacturing overhead means all expenses related to factory and indirect materials and indirect…

Q: Deltan Corp. allocates overhead to production on the basis of direct labor costs. If Deltan's total…

A: Definition: The job order costing system is the method of costing system under which the cost of…

Q: Sterner Company computes its predetermined overhead application rate using direct labor hours as the…

A: Predetermined Overhead Application rate = Estimated Manufacturing overhead costs / Estimated Direct…

Q: 6. Galera Corporation debited Cost of Goods Sold and credited Manufacturing Overhead at year-end. On…

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

Q: Assume that the company uses the reciprocal method in distributing service department costs and that…

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

Q: There are no changes in the company's cost structure. Assume that the units produced were also the…

A: Absorption costing, often known as "full costing," is a managerial accounting technique for…

Q: The accounting records of Abalos Company revealed the following information: Raw materials used,…

A: Raw materials used P5,00,000 Labor cost (P500000 * 50%) P2,50,000 Overhead (P500000 * 30%)…

Q: In order to better match cost with revenues, Lewisville Corporation distributes its service…

A: This question deals with the service department cost allocation.  In algebraic method, service…

Q: 5. The accounting department of Mafe Café provided the following data for 2021: Sales Marketing…

A: A cost sheet is a statement that shows accumulated costs associated with a product or production. It…

Q: The total manufacturing costs for the year were $680,000; the cost of goods available for sale…

A: Here the missing  values  can be find by reverse working

Q: Assume that a company uses a standard cost system and applies overhead to production based on direct…

A: Actual units = 24,190 Standard ghours per unit = 2 Standard rate per hour = $6.00

Q: 1) Messinger Manufacturing Company had the following account balances for the quarter ending March…

A: Raw materials: It is the basic input required to manufacture the finished products. The raw…

Q: The Darwin Company reports the following information: Sales $76,500 Direct materials used 7,300…

A: Product cost refers to the cost incurred to create a product. It includes direct material, direct…

Q: The following cost information is presented for Phoenix Ltd. for the most recent period.…

A: Cost of goods manufactured(COGM) shows the total costs incurred on the production of goods. It…

Q: Here are selected data for Ramalingagowda Company: Cost of goods manufactured $320,000 Work in…

A: Workings: Cost of goods manufactured=Beginning WIP+Total manufacturing cost-Ending…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.