labor and as manufacturing overhead. Conversion cost is the sum of direct labor and manufacturing overhead. These costs are incurred to convert materials into the finished product. Indirect labor is treated as part of manufacturing overhead. 2. Prime cost and conversion cost share what common element of total cost? B. Direct labor. Prime cost is the sum of direct materials and direct labor‚ likewise Conversion cost is the sum of direct labor and manufacturing overhead. 3. On the Schedule
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2‚ No.1‚ January 2013 _________________________________________________________________________________ www.borjournals.com Blue Ocean Research Journals 83 Overhead Capital”‚ “Economic Overheads”‚ “Overhead Capital”‚ “Basic Economic Facilities”‚ and so on. Nurkse elaborated the concept of overhead capital. According to him “overhead investment aims at providing the services – transport‚ power‚ and water supply‚ which are basic for any productive activity‚ cannot be imported from abroad‚ required
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A costume maker that makes specialty costumes for figure skaters All of these Instructor Explanation: Chapter 3 Points Received: 5 of 5 Comments: Question 2. Question : (TCO F) Luft Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below: Units Percent Complete with respect to Conversion Beginning work in process inventory 11‚000 90% Started in
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budget should be based on the production budget. 3. A favorable variance should be ignored by management. 4. The direct manufacturing labor price variance is likely to be unfavorable if lower-skilled workers are put on a job. 5. For fixed overhead costs‚ the flexible-budget amount is always the same as the static-budget amount. II. MULTIPLE CHOICE 6. The plans of management are expressed formally in: A. the annual report to shareholders. B. Form 10-K submitted to the Securities
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products‚ and through this relationship assigns indirect cost to products less arbitrarily than traditional methods...” (Investopedia‚ 2014) 1. Compute the activity based overhead rate for each activity cost pool. Activity based overhead is determined by dividing estimated overhead by the estimated cost drivers. Activities Estimated Overhead Cost Drivers
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Question : | (TCO F) Assume there is no beginning work in process inventory and the ending work in process inventory is 100% complete with respect to materials costs. The number of equivalent units with respect to materials costs under the weighted-average method is: | Student Answer: The same as the number of units put into production. | 2. | Question : | (TCO F) Process costing would be appropriate for each of the following except: | Student Answer: custom furniture manufacturing
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| AC505 MANAGERIAL ACCOUNTINGFINAL EXAMWeek 8: Week 8: Final Exam - Final Exam | | | | Help | | | | ------------------------------------------------- Top of Form There are 3 pages in this exam. Be sure to complete all pages before submitting the exam. Page: | 1 | | 2 | | 3 | | | | | Bottom of Form Page 1 ------------------------------------------------- Top of Form Time Remaining: 1. (TCO A) Wages paid to the factory manager are considered
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Week 12 Class Exercises Solutions: Exercise 13-29 1. Average investment in productive assets: Balance on 12/31/x1 $12‚600‚000 Balance on 1/1/x1 ($12‚600‚000 1.05) 12‚000‚000 Beginning balance plus ending balance $24‚600‚000 Average balance ($24‚600‚000 2) $12‚300‚000 a. ROI = = = 20% b. Income from operations before income taxes $ 2‚460‚000 Less: imputed interest charge: Average productive assets $12‚300‚000 Imputed interest rate .15 Imputed
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from one department to another. Process costing give a clarify information to managers‚ therefore this activities is very important. Process costing is consisting of three ingredients which are direct materials‚ direct labor and manufacturing overhead. Direct material is the raw material which needs to produce a product‚ for example rubber for shoes‚ plastics for straws and etc. direct labor is a person who work and complete the product before it is completely produce. And manufacturing over head
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II. Crude oil refining 2. At the end of a period‚ after overhead has been applied to all jobs‚ manufacturing overhead has a credit balance of $900. We say that overhead is: a. Correctly applied b. Overapplied c. Underapplied d. None of the above 3. Using the variable costing method‚ which of the following costs are assigned to inventory? a. Variable factory overhead costs and variable selling and admin costs b. Variable factory overhead costs c. Variable selling and admin costs d. Neither 4. Which
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