The predetermined indirect cost allocation rate is computed as total estimated indirect costs / total estimated amount of the allocation base. total amount of the allocation base / total estimated indirect costs. total estimated indirect costs + total estimated amount of the allocation base. total amount of the allocation base - total estimated indirect costs.

Q: Under activity-based costing, selling and administrative expenses may be allocated using which of…

A: Budgeted activity cost is the budgeted cost prepared by the company that would be incurred on…

Q: 9) Which of the following statements about normal costing is true?   A) Direct costs and indirect…

A: Introduction:- Under the normal costing :- It assign costs to products based on the materials,…

Q: Second-stage allocation in Activity-based Costing includes assigning costs to; O a. Activity rates…

A: Activity  based costing  allocates costs to cost pool as a first stage objective

Q: Using the seven-step approach for assigning costs put the following four steps in the correct order:…

A: The seven step approach is used to assign the costs to individual jobs. In job costing several jobs…

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: 1.An activity that has a direct cause-effect relationship with the resources consumed is a(n) Group…

A: In activity based costing the cost are apportioned based on the respective cost drivers

Q: In a homogeneous cost pool, all costs have a similar cause-and-effect relationship with the cost-…

A: The homogeneous cost pool is a collection of different costs whose changes are based on single base.…

Q: When determining the cost of a manufactured good under an operation-costing system, a company would:…

A: as per operating costing system cost of goods manufactured is computed by taking  direct material…

Q: Calculate the cost allocation base per customer.   Compute the appropriate cost drivers for the…

A: solution : let us first note down the indirect costs Energy cost 4200 Machine and…

Q: Which costing techniques are related to a predetermined cost as a performance targe and actual…

A: Solution: "Standard costing" are related to a predetermined cost as a performance target and actual…

Q: There are three categories of costs: fixed costs, variable costs and semi-variable costs. Which of…

A: Semi-variable cost includes both fixed and variable costs. In this, most of the part is fixed but…

Q: The overhead absorption rate used to allocate manufacturing overhead is calculated by: a. dividing…

A: Absorption costing is one of the method for allocating overhead expenses. Such rate is basically a…

Q: Which of the following formulae is used to calculate the cost per equivalent unit of production…

A: Equivalent units of production = Fully and partially completed units expressed as , % of fully…

Q: Compare the total support department costs allocated to each production department under each cost…

A: Calculation of the total support department costs to the Cutting department under the direct method…

Q: Compute predeterminedoverhead rates and explainwhy estimated overhead costs(r ather than actual…

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

Q: Costs that must be allocated in order to be assigned to a product or department are called direct…

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

Q: ost classifications used for assigning costs to cost objects include: Multiple Choice Variable cost…

A: Cost Classification Determining the cost in the organisation is one of the important part in the…

Q: Which of the following is referred to as the second stage of cost allocation? O The allocation of…

A: Cost allocation is the assigning and allocating the cost to the specific objects, departments,…

Q: o. Reconcile the variable costing income from operations of $357,500 with the absorption costing…

A: The question is based on the concept of Cost Accounting.

Q: Under activity-based costing, second stage allocation would involve: a. Calculating activity rates O…

A: ABC costing: Here the costs of products are to be allocated by the activities using cost pools. It…

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: Classify each cost element as either fixed, variable, or mixed

A: Variable Cost: variable cost is the cost that varies in total cost with change in the unit…

Q: Which of the following best defines standard costing?   a. It is the same as actual costing but…

A: The method of calculating the cost of a manufacturing process is known as standard costing. It's a…

Q: The following are nine technical accounting terms: Responsibility margin Contribution margin…

A: Responsibility accounting is a term that asserts that each expenditure incurred in the organization…

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: The following statements are correct objective of cost accounting except:   Ascertainment of cost…

A: Answer: Objective of Cost accounting includes: Ascertainment of cost: It means to calculate the…

Q: the following methods of cost allocation is completed by taking the service flows to epartments only…

A: Direct method

Q: The overhead absorption rate used to allocate manufacturing overhead is calculated by: Select one:…

A: The manufacturing overhead costs are allocated to the goods on the basis of a predetermined overhead…

Q: The overhead absorption rate used to allocate manufacturing overhead is calculated by: Select one:…

A: Total Estimated Manufacturing Overheads  Overhead…

Q: Which of the following is the correct formula to compute the predetermined overhead rate?…

A: Predetermined overhead rate: Predetermined overhead rate is calculated befor the period begins. This…

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: Under activity-based costing, second stage allocation would involve: O a. Defining activity measures…

A: Activity-based costing is a method of costing system which focuses on activities. In this method of…

Q: 1.The overhead absorption rate used to allocate manufacturing overhead is calculated by: Select…

A: overhead absorption rate used to allocate manufacturing overhead is determined on basis of cost…

Q: Dual allocation is a cost allocation approach that separates direct and indirect costs, tracing the…

A: Dual allocation method: It involves two type of cost pools, fixed cost and variable cost.

Q: Which of the following statements is true? (You may select more than one answer.)a. Conversion costs…

A:

Q: Cost incurred at the time of procurement is known as ______________ Historical cost Sunk cost…

A: Historical cost means the cost when an items is purchased. Sunk cost means the cost which is already…

Q: Under activity -based costing , second stage allocation would involve a. Calculating activity rates…

A: Activity based costing system is a costing system which assigns costs on the basis of activities and…

Q: Below are the different types of costing system except: a. overhead costing b. Traditional costing…

A: A costing system is used for the purpose of measuring or analyzing the costs in order to determine…

Q: Which of the following descriptions could be applied to the IT costs in question four? ( previous…

A: Please see Step 2 for required information.

Q: Which of the following is the correct formula to compute the predetermined overhead rate? a.…

A: Predetermined overhead rate is calculated before the period begins therefore it is based on…

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.