Which method of determining operating income is used internally for decision making and considers fixed factory overhead a period expense?

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: Which document is used by cost accounting to allocate direct labor charges to work-in-process?

A:

Q: Identify each of the following costs as either a product cost (PROD) or a period cost (PER). Factory…

A: Product costs: It is the cost that is associated directly with production of goods and comprises of…

Q: Which of the following is part of factory overhead cost? a.depreciation of sales person's vehicle…

A: Cost accounting system: Cost accounting system of an organization consists of procedures and…

Q: Which one of the following costs can be accurately identified as forming part of a cost centre?…

A: cost center - it is a department that indirectly contributes to the organization's profits.  They…

Q: Which one of the following costs can be accurately identified as forming part of a cost centre?…

A: A cost center is a department of the company that supervises the costs of the company. Examples -…

Q: Choose the option that has the most accurate list of elements of a manufacturing cost. Direct…

A: The manufacturing costs include all the direct and indirect cost related to the production process.…

Q: Which of the following is a product cost? A) Sales commissions B) CEO's salary C) Delivery van…

A: Product costs are related to manufacturing and are part of cost of inventory.

Q: Certain businesses attach manufacturing overhead to tasks based on labor costs. Determine another…

A: To determine the actual cost of product sales, overheads or indirect costs must be assigned to the…

Q: Manufacturing overhead applied is added to direct labor incurred and to what other item to equal…

A: Overhead: It refers to an expense that relates to an ongoing business and is centrally incurred by…

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

A: Variable costing method / Contribution margin income statement method of determined operating income…

Q: Which of the following costs would be included in the cost of a manufactured product according to…

A: Under variable costing method, only variable cost considered and included in production cost and…

Q: How do we calculate factory cost? Prime cost + Opening WIP- Closing WIP+ Factory Overhead b. Total…

A: Factory cost includes the cost incurred on the factory on the goods that are meant to sold.

Q: a. How is a predetermined factory overhead rate calculated?b. Name three common bases used in…

A: a.

Q: Which one of the following is not a cost element in manufacturing a product? Office salaries…

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

Q: If fixed manufacturing overhead costs are released from inventory under absorption costing, what…

A: Absorption Costing: Absorption costing is a method for calculating the full cost or total cost of a…

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: What is the cost of beginning work in process inventory plus the cost added during the period for…

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

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

A: Refer Step 2 for explanation

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: 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: Why must a company estimate the amount of factory overhead assigned to indivdual jobs or jobs lots

A: Factory overhead is the total cost involved in operating all production facilities of a…

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: Is manufacturing overhead cost given to tasks based on a precise determination of each job's…

A: Concept: Generally, overhead costs in the manufacturing industry are assigned based on a predefined…

Q: Describe the relations among the income statement, the schedule of cost of goods manufactured, and a…

A:

Q: When a manufacturing company uses indirect materials, it accumulates the cost by debiting a.…

A: Manufacturing company is a company that uses raw material by converting them into finished goods.

Q: Which account is used in the job order cost system to accumulate direct materials, direct labor, and…

A:

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: Which of the following describes a fixed cost? O a. total cost that fluctuates with changes in…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

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: Why must a company estimate the amount of factory overhead assigned to individual jobs or job lots?

A: Overhead: It can be defined as the expense that is centrally incurred by the business in continuing…

Q: how to i get total direct labor for a company with hours and cost number available?

A: Direct labor cost: It is the cost of wages paid to the workers is called labor cost. The cost of…

Q: Which of the following costs at a manufacturing company would be treated as a product cost under…

A: The product costs are the costs which are directly related to the production. The variable costing…

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: 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 a manufacturing company uses direct labor, it assigns the cost by debiting a. Work-in-Process…

A:

Q: How do I calculate manufacturing overhead based on direct labor hours

A: Manufacturing overhead means all type of indirect costs that are incurred for production and…

Q: Salaries and commissions of company salesperson * Product Cost Period Cost

A: Introduction: Product cost: Cost which is directly related to manufacturing of a product called as…

Q: What account is credited when overhead cost is applied to Work in Process? Would you expect the…

A:

Q: When a manufacturing company uses direct labor, it assigns the cost by debiting Work-in-Process…

A: Option a.

Q: Determine the amount of underapplied or overapplied manufacturing overhead for the period.

A: We can get to understand underapplied or overapplied manufacturing overhead by assuming some…

Q: Is Manufacturing Overhead cost allocated to jobs by precisely identifying the overhead cost of each…

A: Manufacturing Overhead Costs are allocated generally on the basis of predetermined overhead rates.…

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

A: Part 1:

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

A:

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.