personnel would usually be considered to be: Indirect Labor: Yes Manufacturing OH: Yes Manufacturing overhead consists of: all manufacturing costs‚ except direct materials and direct labor. Which of the following costs would not be included as part of manufacturing overhead? Insurance on sales vehicles Conversion costs consist of which of the following: Direct labor and manufacturing overhead cost. Each of the following would be a period cost except: depreciation of a machine used in manufacturing
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. (TCO 2) Bubba’s Crawfish Processing Company uses a traditional overhead allocation based on direct labor hours. For the current year overhead is estimated at $2‚250‚000 and direct labor hours are budgeted at 415‚000 hours. Actual overhead was $2‚200‚000 and actual direct labor hours worked were 422‚000. (a) Calculate the predetermined overhead rate. Rate‚ based on budgeted factory overhead cost and budgeted activity‚ that is established before a period begins. 2‚250‚000/415‚000 Budgeted
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2.0 Analysis of the results 4 2.1 Allocation and Apportionment 2.2 Overhead Absorption Rates 2.3 Cost Determination 2.4 Pricing for Potential Orders 2.5 Profit Analysis 2.6 Sensitivity Analysis 2.6.1 Scenario 1: Increase/Decrease in Direct Material Costs 2.6.2 Scenario 2: Increase/Decrease in Direct Labour
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11. A total variance is best defined as the difference between total a. actual cost and total cost applied for the standard output of the period. b. standard cost and total cost applied to production. c. actual cost and total standard cost of the actual input of the period. d. actual cost and total cost applied for the actual output of the period. 12. The term “standard hours allowed” measures a. budgeted output at actual hours. b. budgeted output at standard hours. c. actual output
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the weighted-average method in its process costing system. The company’s ending work-in-process inventory consists of 5‚000 units‚ 80% complete with respect to materials and 50% complete with respect to labour and overhead. If the total dollar value of the ending inventory is $60‚000 and the cost per equivalent unit for labour and overhead is $8.00‚ what is the cost per equivalent unit for materials? A)$5.00. B)$10.00. C)$8.00. D)$4.00. 2.Black Company uses the weighted-average method in its
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cushions that are used to manufacture sofas is best described as a: A) manufacturing overhead cost. B) period cost. C) variable cost. D) conversion cost. Ans: C AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 1‚2‚5 Level: Medium 5. A security guard’s wages at a factory would be an example of: Indirect labor Fixed manufacturing overhead A) No No B) Yes Yes C) Yes No D) No Yes Ans: B AACSB: Reflective Thinking
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produced has an increment by unit. That is‚ it is the cost of producing one more unit of a good.) average cost Relevant Cost Opportunity Cost Sunk Cost Out of Pocket Cost (Cost requiring cash disbursements in the current accounting period. Thus‚ depreciation is not an out-of-pocket cost because it does not require spending of cash) Requirement: 900 gallons Perishable Inventory 1300 gallons Average price $9.50 for inventory Current price for endor $11.00 If accepted need to replace 900 gallons
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department‚ materials‚ labor and overhead inputs may be needed and upon completion of a particular process‚ the partially completed goods are transferred to another process. SIMILARITIES AND DIFFERENCES OF JOB ORDER AND PROCESS COSTING SYSTEM The cost flows for a process cost system are basically similar to those of a job order costing system‚ both job order and a process cost system track the same three manufacturing cost elements‚ the materials‚ labor and overhead. In both costing systems‚ all
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A. Choice A B. Choice B C. Choice C D. Choice D 8-24. The three basic elements of manufacturing cost are direct materials‚ direct labor‚ and: A. cost of goods manufactured. B. cost of goods sold. C. work in process. D. manufacturing overhead. 9-26. Which terms below
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by the letters a through i. Assume all purchases are made on account. 1 2 2. Hirpara Inc. has provided the following data for July: Required: Prepare T-accounts for Raw Materials‚ Work in Process‚ Finished Goods‚ and Manufacturing Overhead‚ and Cost of Goods Sold. Record the beginning balances and each of the transactions listed above. Finally‚ determine the ending balances. 3 3. Whether a company uses process costing or job-order costing depends on its industry. A number
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