Manufacturing overhead:Group of answer choicesincludes direct materials, indirect materials, indirect labor, and factory depreciation.should not be assigned to individual jobs because it bears no obvious relationship to them.is easily traced to jobs.is a pool of indirect production costs that must somehow be attached to each unitmanufactured.includes all selling costs.

Includes direct materials, indirect materials, indirect labor, and factory depreciation.This choice…

Answered: Manufacturing overhead: Group of answer…

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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One of the disadvantages of the departmental and the plantwide overhead rate methods is that OA. technological advances may decrease the effect of direct labor hours as a percentage of total manufacturing costs. B. technological advances may increase direct labor hours as a percentage of total manufacturing costs. OC. direct labor hours may decrease the effect of technological advances. OD. direct labor hours may increase the effect of technological advances.
Accounting Direct labor or machine hours may not be the appropriate cost driver for overhead in all areas of manufacturing due to the complexities of many manufacturing processes. Many companies use activity-based costing (ABC) which uses multiple drivers (items that consume resources) rather than just one driver to apply overhead to their activities. With ABC, a company can use a cost driver that has a direct cause/effect relationship in its applied overhead costs. Waterways looked into ABC as a method of costing because of the variety of items it produces and the many different activities in which it is involved. The activities listed below area sample of possible cost pools for Waterways. Assembling Payroll Billing Plant supervision Digging trenches Product design Janitorial Purchasing materials Machine maintenance Selling Machine setups Testing Molding Welding Packaging Using the following information, determine the overhead rates and the actual cost assigned for each of the…
Assigning manufacturing overhead to a specific job is complicated by all of the following except: Multiple Choice Manufacturing overhead is an indirect cost that is either impossible or difficult to trace to a particular job. Manufacturing overhead is incurred only to support some jobs. Manufacturing overhead consists of both variable and fixed costs. The average cost of actual fixed manufacturing overhead expenses will vary depending on how many units are produced in a perio
Which of the following represents the cost of jobs completed but not yet sold? O a. Raw Materials Inventory O b. Cost of Goods Sold O c. Work in Process Inventory O d. Finished Goods Inventory O e. None of the given answer is correct
Discuss the reason why companies use predetermined (factory) overhead rates rather than actual manufacturing overhead costs to apply overhead to jobs? What purpose does that serve?
Manufacturing overhead is what is left after subtracting direct labor and direct material from total manufacturing costs. True or False True False
provide correct option with explanation
Which of the following is an example of a variable cost? a.Insurance on the production equipment b.Direct materials c.The production supervisor's salary d.Depreciation of the factory building e.None of these
Answer the below questions
f) ‘Process costing is a term used in cost accounting to describe one method for collecting and assigning manufacturing costs to the units produced.’ There are some statements about the process costing: An abnormal loss occurs when expected output exceeds actual output. The scrap value of an abnormal loss is credited to the process account. The allocated cost of an abnormal gain is credited to the process account. The inputs to a process less the normal loss is the expected output. The normal loss in a process is allocated a cost in order to reconcile the costs of inputs and outputs. The FIFO method assumes opening WIP is the first group of units to be completed. Therefore, opening WIP is charged separately to completed production and CPU is based on current period costs. Required: Please identify which of the above statements are false and explain the reasons.
1.) WHICH ONE OF THE FOLLOWING WOULD NOT BE CLASSIFIED AS MANUFACTURING OVERHEAD? (A) INDIRECT LABOR (B) DIRECT MATERIALS (C) INSURANCE ON FACTORY BUILDING (D) INDIRECT MATERIALS 2.) THE PRODUCT COST THAT IS MOST DIFFICULT TO ASSOCIATE WITH A PRODUCT IS (A) DIRECT MATERIALS. (B) DIRECT LABOR. (C) MANUFACTURING OVERHEAD. (D) ADVERTISING.
Manufacturing overhead is not : A manufacturing cost . An indirect cost . A period cost. о A product cost.

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