2. All of the following are true EXCEPT that indirect costs A. may be included in prime costs. B. are not easily traced to products or services. C. vary with the selection of the cost object. D. may be included in manufacturing overhead. 3. At a breakeven point of 200 units‚ variable costs total $400 and fixed costs total $600. The 201st unit sold will contribute how much to profits? (6 pts) 4. What is the correct journal entry if $57‚000 of direct materials
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1. Cost of Production Report: A company’s Department 2 costs for June were: Cost from Department 1 Cost added in Department 2: Materials Labor Factory overhead (FOH) $16320 43‚415 56‚100 58‚575 The quantity schedule shows 12‚000 units were received during the month from Department 1; 7‚000 units were transferred to finished goods; and 5‚000 units in process at the end of June were 50% complete as to materials cost and 25% complete as to conversion cost. Required: Prepare Cost of production report
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management of the company has decided to adopt the activity-based costing system and has identified three activity cost pools. Information on its annual overhead costs and the activity cost pools are as follows: Activity cost pools (rate of consumption) Overhead Leather Insole Other Total costs cutting fabrication Production overhead RM240‚000 35% 45% 20% 100% Office expense RM160‚000 15% 55% 30% 100% The “Other”
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they were using people that were in the retaining job pool formed by the union to time the lines so they could observe operations and create “uptime reports.” This increase in labor wasn’t necessarily specific to manifolds but since ACF uses one overhead pool the costs were still allocated to manifolds. It is of my opinion that the ACF should not discontinue manifolds. If the projections are correct the demand for stainless steel manifolds would increase dramatically and it would just be foolish
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cost card. Answer True False 1 points Question 25 Which of the following accurately describes a difference between job order and process costing systems? Answer | | In job order costing systems‚ overhead costs are treated as product costs‚ whereas in process costing systems‚ overhead costs are treated as period costs. | | | Job order costing systems do not need to assign costs to production‚ whereas process costing systems do.
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of production and overheads costs to the price of each product that is going to be sold. It accounts for all costs‚ direct and indirect‚ fixed and variable. For example; if 1000 products are made and the total costs are £10000 then each product would cost £10 before making a profit (10000/1000=10). Variable costs are costs that can be controlled by management or a sales worker. Whereas fixed costs are controllable but very rarely controlled. The reasoning for including overheads in the prices of
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Simple system Good for times when there is not a lot of difference year to year and when volume is high because cost allocation are based on volume related overhead rates. Tying maintenance to machine hours and labor Depreciation per machine hour Weaknesses Allocating machine set-ups per machine hours Allocates overhead not per product No useful with wide range of products and volumes No material usage variances were computed by QA Employee benefits per machine hours
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Coordination Meeting‚ U.S. Department of Energy‚ Office of Transportation Technologies‚ Washington‚ D.C. ANL 2.00 1.50 Borroni-Bird 2.05 1.56 EEA 2.14 1.56 EEA Methodology Share of Cost Contributor or Category MSRP (%) 50.0 Vehicle Manufacturing 17.0 Overhead 7.0 23.5 Selling 97.5 Sum of Costs 2.5 Profit 100.0 RPE Share of RPE (%) 46.9 22.1 22.9 91.9 8.1 100.0 Page 7 Cuenca‚ R.M.‚ L. L. Gaines‚ and A. D. Vyas‚ 2000‚ Evaluation of Electric Vehicle Production and Operating Costs‚ Argonne National Laboratory
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thing that must be determined is a specific amount of fixed manufacturing overhead costs. The manufacturing overhead are all of the expenses incurred through the manufacturing process. The manufacturing overhead costs will be applied to each unit of output. These costs include‚ but are not limited to‚ direct materials‚ direct labor‚ applied variable manufacturing overhead and applied fixed manufacturing overhead. This fixed overhead cost per unit is recorded as ‘Cost of goods sold’ upon the sale of each
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refinery security guards employed by ExxonMobil Corporation. Product cost‚ Variable‚ Manufacturing Overhead 5. The salary of a financial vice president of Hewlett Packard. Period Cost‚ Fixed 6. Advertising costs of Coca-Cola. Period Cost‚ Fixed 7. Straight-line depreciation on factory machinery of Boeing Corporation. Prodcut Cost‚ Fixed‚ Manufacturing Overhead 8. Wages of assembly-line personnel of Whirlpool Corporation. Product Cost‚ Variable‚ Direct
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