HW CHAPTER 16 Question 3 In the Assembly Department of Bridgeport Company, budgeted and actual manufacturing overhead costs for the month of April 2027 were as follows. Indirect materials Indirect labor Utilities Supervision Actual $12.298 17,716 8,600 9,331 4,300 4.300 Controllable Cost Budget $13.760 17.200 All costs are controllable by the department manager Prepare a responsibility report for April for the cost center. Budget BRIDGEPORT COMPANY Assembly Department Manufacturing Overhead Cost Responsibility Report Actual Difference Favorable Unfavorable Neither Favorable nor Unfavorable

Q: Utility expense

A: Energy, water, and trash disposal are all utilities that are used in the home or business and incur…

Q: What is physical asset market?

A: Definition: The Market where tangible assets can be purchases, sold and liquidity in case of default…

Q: Define Raw materials.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: What are the factors affecting equipment costs?

A: Equipment cost is the total cost incurred to bring the equipment in the useable state. It includes…

Q: Working Capital

A: Working capital = Current Assets - Current Liabilities  We know that current assets and current…

Q: Define Depletion.

A:

Q: Discuss the importance of asset allocation

A: The Asset allocation is conserved allocation of total fund of investment in different kind of assets…

Q: Define Current assets

A: Introduction: Assets are the properties acquired and managed by business as a result of past events…

Q: Examples of transaction costs

A: Transaction costs are the costs which occur during buying or selling of services and goods. They are…

Q: Define Pledging.

A: When we talk about pledging in terms of accounting, it is to be noted that the word pledging is…

Q: Differentiate between physical units and equivalent units

A:

Q: Define Intangible Assets.

A: Definition:   Assets: These are the resources owned and controlled by business and used to produce…

Q: what are relevent cost of direct material

A: The management of the manufacturing firm has to take certain decisions regarding the…

Q: Define cost of equipment.

A: Definition:   Assets: These are the resources owned and controlled by business and used to produce…

Q: What is underapplied overhead? Overapplied overhead?

A: The under applied overhead is explained as below,

Q: Define the term Raw-materials- inventory?

A: Inventory is the materials such as raw materials, finished products, in-process goods that are…

Q: Describe the purpose of raw material subsidiary ledger.

A: Raw material subsidiary ledger: This ledger refers to the individual account, which records the all…

Q: Describe the term cost of the direct materials.

A: Cost:  Cost refers to the expenses incurred by the business to earn revenue from sales, in other…

Q: What is the carryover amount?

A: Introduction Capital losses may be defined as the decrease in the value of capital assets of the…

Q: Describe the effects of using direct and indirect material.

A: Direct materials are required directly in the production process like wood required to make…

Q: assets equation

A: Assets Equation is: Assets = Liabilities + Capital

Q: cost of materials issuances under the fifo method

A: Meaning of FIFO method FIFO method is called as First in First Out method. Under FIFO method the…

Q: What is the cost per equivalent unit for materials?

A:

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.