The fact that your organization under applies or over applies overhead is an indication of a problem with the people in charge of applying such overhead. Defend or attack this statement. I am going to defend this statement even though a portion of it has some merit and could indicate lesser of a problem than it might appear. Operating a business is a complex
Premium Generally Accepted Accounting Principles Balance sheet Costs
Question 3 6 46 Total 100 points Part A - Multiple Choice 1 | Conversion cost consists of which of the following?a. Manufacturing overhead cost.b. Direct materials and direct labor cost.c. Direct labor cost.d. Direct labor and manufacturing overhead cost. | 2. | Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following?a. Product costb. Manufacturing overheadc
Premium Variable cost Costs Cost
(drugs and medical devices)‚ physician surgical time‚ and operating room over-head. On January 1 of the current year‚ the annual operating room overhead is estimated to be: Disposable supplies $124‚500 Depreciation expense 24‚000 Utilities 15‚300 Nurse salaries 188‚000 Technician wages 47‚200 Total operating room overhead $399‚000 The overhead costs will be assigned to procedures based on the number of surgical room hours. The Medical Center expects to use the operating room an average
Premium Surgery Employment Wage
constant| ____ 2. When cost relationships are linear‚ total variable prime costs will vary in proportion to changes in a.|direct labor hours.| b.|total material cost.| c.|total overhead cost.| d.|production volume.| ____ 3. Which of the following would generally be considered a fixed factory overhead cost? Straight-line|Factory|Units-of-production| depreciation|insurance|depreciation| a.| no no no| b.| yes no yes| c.| yes
Premium Variable cost Costs Fixed cost
Email Instructor __________________________ ACTIVITY BASED COSTING SYSTEM Two stage process Activity pools Activity categories With & Without ABC example What is Activity based costing (ABC)? Activity based costing (ABC) assigns manufacturing overhead costs to products in a more logical manner than the traditional approach of simply allocating costs on the basis of machine hours. Activity based costing recognizes that the special engineering‚ special testing‚ machine setups‚ and others are activities
Premium Costs Variable cost Activity-based costing
Chapter 3 Solutions‚ 3rd day Exercise 3-13 (15 minutes) 1. | Actual manufacturing overhead costs | | $ 48‚000 | | Manufacturing overhead applied: 10‚000 MH × $5 per MH | | 50‚000 | | Overapplied overhead cost | | $ 2‚000 | | | | | 2. | Direct materials: | | | | Raw materials inventory‚ beginning | $ 8‚000 | | | Add: Purchases of raw materials | 32‚000 | | | Raw materials available for use | 40‚000 | | | Deduct: Raw materials inventory
Premium Manufacturing Supply chain management terms Inventory
month of July: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs Budgeted Costs per DVD $ 1.500 $ 0.800 $ 0.700 $ 1.000 $ 4.000 Variable manufacturing overhead varies with respect to units produced. Fixed manufacturing overhead as per above financial date is based on the followings: Budgeted production Fixed manufacturing overhead per month 150‚000.00 $ 150‚000.00 Other financial data: Sale price
Premium Cost Generally Accepted Accounting Principles
way in which product costs are determined. Product costs are inventoried; and they include direct materials‚ direct labor and overhead. Period costs are expensed in the period they are incurred. These are usually selling and administrative expenses or other expenses to run your company day to day. The one difference between the two costing systems is fixed factory overhead. Absorption costing is a
Premium Inventory Costs Balance sheet
Wednesday January 11th‚ 2012 Chapter 1 Introduction to Management Accounting What is Managerial Accounting? -managerial accounting is providing information for a company’s internal users -it is the firm’s internal accounting system -it is designed to support the information that managers need -it is not bound by any formal criteria such as GAAP or IFRS (International Financial Reporting Standards) -managerial accounting has 3 basic objectives: 1. Provide information for planning the organizations
Premium Management accounting Costs Variable cost
not the quantity produced. It first traces costs to activities then to products. What make it different from traditional method are the cost drivers that are used. The approach splits overhead costs into over head cost pool‚ where every cost pools associated with different cost driver. Then a predetermined overhead rate is computed for each cost pool and each cost driver. Benefit; * Improve product or service cost data * Decision in pricing‚ service mixes and product strategies based
Premium Management accounting Costs Variable cost