A company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2020: Budgeted manufacturing overhead costs $3,800,000 Budgeted machine-hours Actual manufacturing overhead costs 175,000 $4,400,000 Actual machine-hours 180,000

Q: The total absorbtion rate used to allocate manuafcturing overhead is calculated by?

A: The absorption rate is allocated using the different allocation bases Direct labors hours Direct…

Q: Class what are the two types of manufacturing overhead? How do they affect the manufacturing…

A: The objective of the question is to understand the two types of manufacturing overhead and how they…

Q: Which of the following is not a factory overhead allocation method? Oa. factory costing b. multiple…

A: The manufacturing overhead includes the indirect costs of production such as indirect materials,…

Q: The advantage of this cost assignment method is that actual cost for materials and labor and…

A: The budgeted costing prepares the budgeted on basis of the estimated cost The standard costing uses…

Q: Overheads applied are calculated by: a.OAR times the estimated cost driver activity b. Budgeted…

A: Overhead is applied on the actual cost driver at the rate based on the estimated overhead and…

Q: In relation to the total budgeted overhead: • is direct labor hours a fixed or variable? (total…

A: Direct labor hours is a variable component as it is paid for per hour basis. For each unit produced,…

Q: Calculate the total manufacturing costs for each job.

A: Overhead refers to the ongoing business expenses not directly attributed to creating a product or…

Q: Which of the following costs could contain both variable and fixed cost elements with respect to the…

A: Variable cost means cost which changes with the change in activity whereas the Variable cost per…

Q: how do I find total over- or underapplied fixed manufacturing overhead?

A: Overhead: Overhead refers to the costs, which are utilized in business activities, however cannot be…

Q: Describe the distinctive characteristic of weighted-average computations in assigning costs to units…

A: Weighted Average Method: Weighted average method is the method in which per-unit cost is calculated…

Q: Traditional Volume-based costing allocates indirect product costs based on the volume of output,…

A: Note: Hello. Since your question has multiple parts, we will solve the first question for you. If…

Q: Ans.

A: Step 1: Question 1 a. unit-level cost.Explanation for correct option:Unit-level cost: These are…

Q: Explain the benefits of using a predetermined overhead rate instead of an actual overhead rate.

A:

Q: Under the job costing system, a budgeted indirect-cost rate is used typically to estimate:   a.…

A: Solution: Under the job costing system, a budgeted indirect-cost rate is used typically to estimate…

Q: Manufacturing overhead costs would include:a. Marketing costs related to selling the product.b. The…

A:

Q: Discuss why businesses apply overhead to projects using predefined (factory) rates rather than real…

A: This question deals with predefined (factory) rates and real manufacturing overhead expenses.

Q: what is the Total factory overhead cost variance?

A: Cost variance is the variance which is measured by the company so that the decision and it can be…

Q: An overhead absorption rate based on direct labour cost is known as the: A. Direct labour hour rate…

A: Overhead absorption meaning:- The quantity of indirect costs ascribed to cost items is refereed to…

Q: Give me answer

A: Question: 1Explanation of Activity Based Costing:Activity-Based Costing (ABC) is a costing method…

Q: Explain why the fixed manufacturing overhead cost per unit changes when there is a change in the…

A: Manufacturing overhead costs:  "The costs, which do not relate directly with the manufacturing of…

Q: Which one of the following represents a period cost? a. Fringe benefits associated with factory…

A: Financial statements are statements which states the business activities performed by the company .…

Q: What does a manufacturing overhead budget tell us?

A: A manufacturing overhead budget tells us how much money a company plans to spend on overhead costs…

Q: 1. Describe the various types of factory/ manufacturing overheads which may occur in project cost

A: Dear student , you asked two questions. As per rule we will answer 1 and for…

Q: When used as the denominator in the calculation of an overhead rate, which of the following will…

A: Capacity or activity level helps to determine the maximum or ideal level at which production can be…

Q: Determine difference between the three methods used for allocating factory overhead costs to…

A: There are three basic cost allocation methods used for allocating the cost of products: the single…

Q: How to solve the factory overhead rate of 2/3 of the labor cost?

A: Lets understand the basics.Factory overhead is a all indirect cost incurred for the production of…

Q: What is a key difference between variable costing and absorption costing?   a. The usage of…

A: Variable costing is a management and cost accounting concept in which fixed manufacturing overhead…

Q: Explain why a manufacturer’s cost of supervising production might be a step-fixed cost.

A: Step-fixed costs: Step-fixed costs remain fixed over a wide range of activity but it jumps to a…

Q: Which of the following is a resource constraint? 1. machine hours available 2. sales commissions…

A: Resources are the things which are needed to make a product in an organisation. Few examples of…

Q: Which of the following is not a method of cost absorption? (a) Percentage of direct material cost…

A: Absorption Costing -Absorption costing is a costing system that is used in valuing inventory. It not…

Q: The basis used for allocating manufacturing overhead (such as machine hours or direct labor hours)…

A: The allocation of manufacturing overheads, also known as factory overhead or indirect manufacturing…

Q: Question: In cost accounting, what is the primary purpose of calculating the predetermined overhead…

A: The predetermined overhead rate is a calculated ratio used in cost accounting to allocate indirect…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.