Define fixed overhead costs.

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: Describe fixed manufacturing overhead under absorption costing.

A: Absorption costing: Under this method, manufacturing cost such as direct material and labor is…

Q: How does the planning of fixed overhead costs differ from the planning of variable overhead costs?

A: Variable cost: The cost which fluctuates on the basis of the output level produced. The variable…

Q: How is the predetermined overhead allocation rate determined?

A: Predetermined overhead allocation rate: Predetermined overhead refers to the allocation rate that is…

Q: explain fixed and variable costs within a relevant range of production

A: The objective of this question is to understand the concepts of fixed and variable costs within a…

Q: Distinguish between two methods of allocating common costs.

A: Cost Allocation Method: The cost allocation method is the method by which the costs to be assigned…

Q: Define the terms under-allocated and over-allocated overhead. What factors contribute to each…

A: Expenses associated with manufacturing overhead: "Manufacturing overhead costs, also known as…

Q: Formula for FIxed Overhead How do you find fixed overhead?  What is the formula?

A: Overheads refers to the total cost of indirect materials, indirect labour and indirect expenses.…

Q: Explain why standard costing is more suitable for controlling the cost of unit-level activities

A: Standard costing is a cost accounting method in which predetermined levels of sales, production,…

Q: Discuss the disadvantages of activity-based costing.

A: Activity Based Costing: The approach of activity based costing keeps the record of resources usage…

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

A:

Q: Describe management’s use of absorption and variable costing.

A: Absorption costing is also known as Full absorption costing. It is one of the managerial accounting…

Q: Identify the costs included under variable costing.

A: The costs can be distinguished as variable and fixed costs.

Q: Define period costs.

A: Period costs are not joined to items and the company does not need for Offer on Sale of items and…

Q: xplain the main principles of Direct costing

A: Solution Concept Direct costing                 This is a method of costing which is based on the…

Q: What are the justifications for using practical capacity as the denominator volume when…

A: Fixed cost volume variance: The fixed cost volume variance is the difference between the budgeted…

Q: Describe planning for variable overhead costs.

A: Variable Cost: The cost which is not fixed is called a variable cost. This cost is directly…

Q: Explain the difference between under-allocated overhead and over-allocated overhead. What causes…

A: Overhead is applied using estimated or budgeted overhead and a base. Actual overhead costs are…

Q: Explain the term overhead absorption rate and briefly explain how an entity may select a  suitable…

A: In accounting, the term "absorption rate" typically refers to the overhead absorption rate or…

Q: What does the word "overhead application rate" mean?

A: Overhead is a term that refers to a continuous   The term "overhead application rate" refers to the…

Q: Define absorption costing.

A: Absorption costing refers to managerial accounting cost method for expending each costs associated…

Q: Explain the major reasons for allocating costs.

A: The entity allocates its cost by using a different measure. The cost that is allocated is common and…

Q: Distinguish between fixed and variable costs while dealing with semi-variable expenses.

A: Fixed and variable costs: The term "variable cost" refers to a cost subject to change based on the…

Q: describe the basic objectives in the use of standard costs.

A: Standard costing indicates the process where the management estimates the required cost is advance…

Q: What kind of cost are considered Manufacturing Overhead Cost?

A: Manufacturing overhead costs are the costs in a factory that you can't easily link directly to a…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.