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: Define Raw materials.

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

Q: Working Capital

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

Q: Define Depletion.

A:

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: 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: 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: 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…

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.