What are the shortcomings of waiting untilthe actual factory overhead expenses areknown before recording such costs on thejob cost sheets?

Q: Which one of the following represents a period cost? 1) The VP of Sales' salary and benefits 2)…

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

Q: nder what conditions might a company use activity-based costing to allocate factory overhead to…

A: Activity-based costing (ABC costing) is a way of assigning manufacturing overhead costs to…

Q: Assigning manufacturing overhead to a specific job is complicated by all of the below except: A)…

A: Manufacturing overhead is a indirect cost incurred during the production process. This overhead is…

Q: a. TRADITIONAL - What is traditional cost allocation for manufacturing overhead? Give an example of…

A: For ascertaining the accurate product cost or total production cost of the manufacturing…

Q: Which of the following is the formula to calculate the predetermined factory overhead rate? Group of…

A: Concept:

Q: The company uses normal costing and applies overhead on the basis of direct labor costs. The total…

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

Q: Traditional overhead allocations result in which of the following situations?      a. Overhead costs…

A: The overhead cost under traditional costing is based on single predetermined overhead rate.

Q: Which of the following would usually be found on a job cost sheet under a normal cost system? Actual…

A: Overheads are considered as fixed and common expenses that should be allocated to the products on…

Q: Determining the basis for applying manufacturing overhead costs involves A. primarily the…

A: Manufacturing Overhead is the indirect cost incurred on Manufacturing activity in a factory . It is…

Q: What is a predetermined overhead rate and explain why many companies use it?

A: The outlays that are not directly related to the production are known as overheads. These can be of…

Q: Which of the following is not a reason to allocate overhead? Some overhead costs are seasonal and…

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: Why factory overhead is computed based on direct labor?

A: Refer Step 2 for explanation

Q: Why do companies use predetermined overhead rates rather than actual manufacturing overhead costs to…

A: If actual manufacturing overheads are applied then  costs are unknown. if calculated need to wait…

Q: Google applies overhead to product costs. What account(s) is(are) used to eliminate overapplied or…

A: Definition: Cost of goods sold: Cost of goods sold is the total of all the expenses incurred by a…

Q: In what way does the accounting treatment of direct materials and direct labor costs differ from…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Manufacturing overhead costs would include:a. Marketing costs related to selling the product.b. The…

A:

Q: When the amount of overapplied factory overhead is significant, the entry to close overapplied…

A: Under the normal costing system, overhead is applied to all jobs worked on during the period at a…

Q: Why do companies use predetermined rather than actual manufacturing overhead rates?

A: Manufacturing overhead means indirect costs that are incurred for manufacturing of products and…

Q: An example of labor-related costs is:   bonus pay factory labor fringe benefits operating expense

A: The labor costs include the wages and salaries paid to employees.

Q: Discuss why businesses apply overhead to projects using predefined (factory) rates rather than real…

A: This question deals with predefined (factory) rates and real manufacturing overhead expenses.

Q: /hich of the following statements pertaining to job-order costing are TRUE? The issuance of indirect…

A: The total costs of production includes the direct materials, direct labor and other indirect costs.

Q: Why would a manufacturing firm switch from direct labor hours to machine hours as the cost driverfor…

A: Direct labor:   Direct labor includes the wages of the employees who are directly involved in…

Q: Which one of the following represents a period cost? Fringe benefits associated with factory workers…

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

Q: If the predetermined overhead rate is based on the estimated level of activity for the current…

A: There are two main type of costs incurred in manufacturing the goods; 1) Direct costs and 2)…

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 one of the following represents a period cost? a. Fringe benefits associated with factory…

A: Financial statements are statements which states the business activities performed by the company .…

Q: Determine difference between the three methods used for allocating factory overhead costs to…

A: There are three basic cost allocation methods used for allocating the cost of products: the single…

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: In a job-order costing system, the incurrence of indirect labor costs would usually be recorded as a…

A: Job order costing: The job order costing is a method of cost used by companies who produce unique…

Q: Why are some manufacturing firms switching from direct-labor hours to machine hours or throughput…

A: Direct labor: Direct labor includes the wages of the employees who are directly involved in…

Q: Which of the following is not considered a cost of manufacturing a product? Group of answer choices…

A: Total manufacturing cost, or simply the cost of producing the things that will be sold to customers,…

Q: What is a predetermined overhead rate and explain why many companies use it?

A: Overhead is an expense which is require in the manufacturing of the goods or product and indirect…

Q: What are the advantages and disavantages of the traditional, activity based costing, and multiple…

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

Q: Discuss the reason why companies use predetermined (factory) overhead rates rather than actual…

A: Manufacturing overheads are the manufacturing costs that could not be directly associated with each…

Q: What is the effect on the cost of goods sold and net operating income, if the cost of factory…

A: If cost of factory overhead applied are greater than the cost actual factory overhead, cost of goods…

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

A: Factory overhead is defined as cost incurred during the process of manufacturing but not including…

Q: Which one of the following is not a production overhead cost? Production line worker’s salary…

A: Production overheads means indirect costs related to production and manufacturing of goods in the…

Q: Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor costs to…

A: Predetermined Overhead Rate = Manufacturing overhead Costs/Direct labor Costs

Q: Factory Actual labor hours Estimated labor hours Estimated Costs

A: Total Estimated Costs: Variable -                                                          7,20,000…

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:…

Q: Which method of determining operating income is used internally for decision making and considers…

A: There are mainly two costing methods adopted by the management to determine the operating income,…

Q: Under what conditions might a company use activity-based costing to allocate factory overhead to…

A:

Q: Some companies use labor cost to apply factory overhead to jobs. Identify another factor (or base) a…

A: The overheads or the indirect cost must be allocated to the respective departments in order to find…

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.