The cost of labor that is not clearly associated with specific units or batches of product is called:

Q: Which of the following is correct with respect to closing out underapplied manufacturing overhead to…

A: Overapplied manufacturing overhead occurs when applied overhead exceeds actual overhead.   The entry…

Q: This includes all manufacturing costs that cannot be classified as direct materials or direct labor.…

A: From all of the above, the Period cost is not directly concerned with the production. The prime cost…

Q: Which of the following is not relevant is not relevant in determining weighted average unit cost in…

A: Equivalent unit of production in beginning inventory is irrelevant because the total beginning…

Q: Equivalent units of production must be calculated before the unit production costs can be computed.

A: The unit product cost is calculated by multiplying the equivalent units by the cost per unit.…

Q: Which is not a step in analyzing the cost driver for manufacturing overhead?A. identify the costB.…

A: All indirect expenses involved during in the manufacturing process are referred to as manufacturing…

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: Which of the following would NOT be considered an activity for the purposes of an activity-based…

A: Introduction: Activity based costing: Its also called As ABC method. According to the Actual…

Q: Manufacturing costs that cannot be traced to the finished product are known as: *

A: Overhead means the cost incurred indirectly in production of goods . For examples , supervisor…

Q: manufacturing cost and non-manufacturing cost, provide an example of each type.

A: COST is a measurement in monetary terms of the amount of resources used for the purpose of…

Q: Which type of manufacturing cost (direct materials, direct labor, variable factory overhead, fixed…

A: Cost of goods manufactured as per Absorption costing =  Direct material + Direct labor + Variable…

Q: Manufacturing costs that cannot be classified as either direct materials or direct labor are known…

A: Manufacturing costs is the cost incurred in the production of any product or unit of the company.…

Q: Is it possible to have under- or overapplied overhead costs in a process costing system? Explain.

A: Process Costing: Process costing is a method of cost accounting, which is used when the production…

Q: In what way does the accounting treatment of factory overhead differ from that of direct materials…

A: Factory overheads include all indirect costs incurred during the manufacturing process to maintain…

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: Determine the following is best described as a fixed, variable, or mixed cost with respectto product…

A: Definition: Variable cost: The cost which changes with the change in the level of activity is called…

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: Which of the following is not used in assigning manufacturing costs to work in process inventory?a.…

A: Overheads are the costs that are incurred to run a business. Some of the overheads are rent,…

Q: The product cost that is most difficult to associate with a product is. advertising direct materials…

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

Q: In case product produced or jobs undertaken are of diverse nature, the system of costing to be used…

A: SOLUTION EXPLANATION- JOB COSTING IS AN ACCOUNTING METHOD DESIGNED TO HELP YOU TRACK THE COST OF…

Q: Which of the following is not considered a product cost? Select one: a. direct labor b. direct…

A: Product cost includes all the cost incurred to manufacture the product.

Q: Consider the following statements regarding traditional costing system: I – Overhead costs are…

A: Introduction  Traditional costing system may be defined as that type of costing system in which…

Q: Which of the following statements about manufacturing cost flows is false? a. Direct materials,…

A: As per our protocol we provide solution to the one question only but you have asked two multiple…

Q: What types of costs should not be assigned to products in an activity-based costing system?

A: Activity-based Costing Activity-based costing is a method of costing which identifies the activities…

Q: Which of the following is not considered a product cost?   a.direct labor b.direct materials…

A: Lets first with the understanding meaning of product cost. Product cost means all cost incurred to…

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: 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: "Under variable costing system, the unit product cost includes:"     "Direct materials, direct…

A: Variable costs are those costs which changes directly with change in level of activity. If level of…

Q: Explain how the analysis of fixed manufacturing overhead costs differs for (a) planning and control…

A: Fixed Cost:The cost which does not fluctuate on the basis of the output level produced. It remains…

Q: The cost of labor that is not clearly associated with specific units or batches of product is…

A: Direct Labor cost that labor which is directly related to Production Units/Batches.

Q: Activity based costing system differs from traditional costing systems in the treatment of, A)…

A: Direct costs are the cost that can be traced on the process and production of goods.

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: Which of the following statements is TRUE?   a. Batch cost shall be the cost of production or…

A: Solution: Statement A= false  Because Process costing shall be the cost of production or operation…

Q: In activity-based costing, some manufacturing costs may be excluded from product costs TRUE FALSE

A: Lets understand the basics. Activity based costing is as the name suggest allocate cost based on the…

Q: Why are overhead costs allocated to products and not traced to products as direct materials and…

A: Given: The allocated overhead cost of products is not traced as direct materials to products.

Q: How would the process-costing computations differ from those illustrated in the chapter if overhead…

A: Process Costing: It is a method of cost accounting used by an enterprise with processes categorised…

Q: Which of the following is not a manufacturing cost category? a)Cost of goods sold b)Direct materials…

A: MANUFACTURING COSTS INCLUDE -   - direct material - direct labor - manufacturing overheads.

Q: What information is contained in a production report? What are equivalent units and how would a…

A: Financial report: Financial reports can be defined as the summary of statements that contains the…

Q: When activity-based costing is used, why do manufacturing overhead costs often shift from…

A:

Q: Which costing method tends to overstate the cost of high-volume products? a. Traditional…

A: Activity-based costing (ABC) is a costing method that identifies activities in an organization and…

Q: the concept of a non-linear cost function which is usually used to predict the cost of labor who…

A: Learning curve is a theory which shows through graphical representation the relationship between…

Q: How do you compute the unit varible cost for an item in manufacturing?

A: Variable costs: Variable costs are costs that vary in direct proportion with changes in production…

Q: Determine the following is best described as a fixed, variable, or mixed cost with respectto product…

A: On the basis of cost behaviour, a cost can be classified into three major categories: Fixed cost:…

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.