Cost AccountingInstruction: Indicate whether the cost is variable or fixed based on behavior; period cost: selling andadministrative cost or product cost: direct or indirect. Use the table provided for your answer.BehaviorPeriod CostProduct CostVariable FixedSellingAdminDirectIndirectCostAdvertising CostBad Debts Expense2Billing CostsBoxes used for packagingfinished costs34Cloth used in T-shirtDepreciation of deliveryequipmentDepreciation of executive carsFactory SuppliesFringe Benefits of assemblyline workers56.7.Fringe benefits of officeemployeesInk used in textbooks1011Insurance of finished goodswarehouses12Lubricants used for machinesMicrochips used in producingcellphonesOffice SuppliesPresident's life insuranceProperty taxes of factorybuildingSalesman commissionsShipping costs onmerchandise sold13141516171819Supervisors' salaries, factoryWages of trontdeskofficersWages of laborers202122Wages of workers in theassembly line2324Wood used in the productioncabinetsGlue in the production tablesLease of office buildingInsurance on a building usedin producing carsLease of factory equipment25262728

Variable costs: These costs are incurred in conjunction to the volume of goods produced or sold. It…

Answered: Cost Accounting Instruction: Indicate…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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I - Product costs are historical figures and therefore are of little use to the manager. II - A company producing furniture would probably use a job-order cost system. * A. T, F B. F, T C. T, T D. F, F
Standard costs are used in companies for a variety of reasons. Which of the following is a benefit of using standard costs? a. They are used to estimate the cost of inventory. b. They are used to control costs. c. They are used to plan direct materials, direct labor, and variable factory overhead. d. all of these choices
Part 2: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Full Variable tab), complete thecalculations listed below.• Calculate the value of ending inventory under full or absorption costing.• Calculate the value of ending inventory under variable costing.Which method you think is more helpful to managers and why. Cookie Business Productions Costs: Direct material $ 0.60 Direct labor $ 1.00 Variable manufacturing overhead $ 0.40 Total variable manufacturing costs per unit $ 2.00 Fixed manufacturing overhead per year $ 139,000.00 In addition, the company has fixed selling and administrative costs: Fixed selling costs per year $ 50,000.00 Fixed administrative costs per year $ 65,000.00 Selling price per cookie $ 3.75 Number of cookies produced 2,780,000 Number of cookies sold 2,600,000 Full (absorption) costing : Full…
Using ABC product cost information when considering reducing cost, which of the following would not be a way to reduce activity costs? a.Improve operations so that the activity-base usage per unit is eliminated. b.Switch to a plantwide allocation rate. c.Improve operations so that the activity-base usage per unit is reduced. d.Change the classification of employees doing an activity to decrease the activity rate.
Companion Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $57 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 46% of direct labor cost. The fully absorbed unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $28 Direct labor 16 Factory overhead (46% of direct labor) 7.36 Total cost per unit $51.36 If Companion Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 14% of the direct labor costs.
Cost Accounting 1. Instruction: Indicate whether the cost is variable or fixed based on behavior; period cost: selling and administrative cost or product cost: direct or indirect. Use the table provided for your answer. Behavior Period Cost Product Cost Variable Fixed Selling Admin Direct Indirect Cost Boxes used for packaging finished costs Cloth used in T-shirt Depreciation of delivery equipment Depreciation of executive cars Factory Supplies Fringe Benefits of assembly line workers Fringe benefits of office employees Ink used in textbooks Insurance of finished goods warehouses Lubricants used for machines Microchips used in producing cellphones Office Supplies President's life insurance Property taxes of factory building Salesman commissions Shipping costs on merchandise sold Supervisors' salaries, factory Wages of frontdesk officers Wages of laborers Wages of workers in the assembly line Wood used in the production cabinets Glue in the production tables Lease of office building…
Mastery Problem: Variable Costing for Management Analysis Absorption vs. Variable Operating income is one of the most important items reported by a company. Depending on the decision-making needs of management, operating income can be determined using absorption costing or variable costing. Select whether the following characteristics are most often associated with absorption costing or variable costing. Required under generally accepted accounting principles (GAAP) Often used for internal use in decision making Cost of goods manufactured includes only variable manufacturing costs Used in reports prepared for external users Fixed factory overhead costs are not part of cost of goods manufactured Both fixed and variable factory costs are included in cost of goods sold and inventory Absorption Statement Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs are included in the cost of…
nline Services v OS Ticket system My Dispense Academic Calendar My courses Activity-based costing (ABC) LO#5 Activity-based costing (ABC) is a costing model that identifies activities in an organization and assigns the cost of each activity resource to all products and services according to the actual consumption by each: it assigns more indirect costs (overhead) into direct costs. In this way an organization can precisely estimate the cost of its individual products and services for the purposes of identifying and eliminating those which are unprofitable and lowering the prices of those which are overpriced. In a business organization, the ABC methodology assigns an organization's resource costs through activities to the products and services provided to its customers. It is generally used as a tool for understanding product and customer cost and profitability. As such, ABC has predominantly been used to support strategic decisions such as pricing, outsourcing and identification and…
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