direct labor and factory overhead. B) Period costs consist of selling and administrative expenses. 3) A) Prime costs which consist of direct materials and direct labor costs. B) Conversion costs which consist of direct labor and factory overhead costs. 4) Materials inventory – consist costs of direct and indirect materials which have not entered the manufacturing process. Work in process inventory – consist direct materials‚ direct labor and manufacturing overhead that have entered the manufacturing
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................................................ $40 Direct labor ....................................................................................................... 22 Variable manufacturing overhead ................................................................... 16 Budgeted fixed overhead in 20x4 was $400‚000 and budgeted production was 25‚000 sleeping bags. The year’s actual production was 25‚000 units‚ of which 22‚000 were sold. Variable selling and administrative costs were $2 per
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were incurred in September: Direct materials $42‚700 Direct labor $29‚400 Manufacturing overhead $27‚300 Selling expenses $23‚600 Administrative expenses $33‚700 Conversion costs during the month totaled: → $56‚700 $70‚000 $72‚100 $156‚700 Conversion cost = Direct labor + Manufacturing overhead = $29‚400 + $27‚300 In September direct labor was 25% of conversion cost. If the manufacturing overhead for the month was $108‚750 and the direct materials cost was $25‚800‚ the direct labor cost
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= RM 19.25 / mt 1) For all estates‚ the overhead costs allocated: Peak season? = RM 19.25 x 20450 tonne = RM 393662.50 Low season? = RM 19.25 x 14600 tonne = RM 281050 Monthly overhead costs based on actual FFB harvested? | Estate A | Estate B | Peak season | = 5000 tonne x RM 19.25= RM 96250 | =2240 tonne x RM 19.25= RM 43120 | Low season | =3500 tonne x RM 19.25= RM 67375 | = 1560 tonne x RM 19.25= RM 30030 | 2) Overhead allocation rate based on annual estimated output:
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reducing the price and Destin Brass has not been able follow. We address this issue and by comparing activity based costing with the cost systems they already using‚ looking for a way in which they can be more competitive on the market. Cover page Table of Content 1. Use the Overhead Cost Activity Analysis in Exhibit 5 and other data on manufacturing costs to estimate product costs for valves‚ pumps‚ and flow controllers Q. 1 When Activity Based Costing (Weetman‚ 2010‚ p. 85) is used to calculate the monthly cost per unit
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Costing and Activity-Based Costing Traditional Costing Systems Allocates overhead using a single predetermined rate. Job order costing: direct labor cost is assumed to be the relevant activity base. Process costing: machine hours is the relevant activity base. Assumption was satisfactory when direct labor was a major portion of total manufacturing costs. Wide acceptance of a high correlation between direct labor and overhead costs. Chapter 4-6 SO1 Recognize the difference between traditional
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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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Problem-Solution Essay Little while ago‚ I saw a travel websites that didn’t recommend several tourist places. Ukraine is on the list because of the ethnic conflicts‚ but Beijing was because of air pollution. I was extremely shocked at the time because I think that was a form of discrimination. I know Beijing’ s air is not good‚ but is not so bad. However two days later‚ my friend who lives in Beijing called me‚ and she said she was sick with high fever. The hospital said it was poisoning because
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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 overhead hours worked were 422‚000. (a) Calculate the predetermined overhead rate. (b) Calculate the overhead applied. (c) Determine the amount of overhead that is over/underapplied. (Points : 6) (a) Calculate the predetermined overhead rate. 2250000/415000 = 5
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CHAPTER 8 ABSORPTION AND VARIABLE COSTING Learning Objectives 1. Explain the accounting treatment of fixed manufacturing overhead under absorption and variable costing. 2. Prepare an income statement under absorption costing. 3. Prepare an income statement under variable costing. 4. Reconcile reported income under absorption and variable costing. 5. Explain the implications of absorption and variable costing for cost-volume-profit analysis. 6. Evaluate absorption and
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