Sweetwater Company manufactures two products, Mountain Mist and Valley Stream. The company prepares its master budget on the basis of standard costs. The following data are for March. Mountain Mist Standards Direct materials Direct labor Valley Stream 3 ounces at $15 per ounce 5 hours at $60 per hour $48 $335,340 5,750 4 ounces at $16.50 per ounce 6 hours at $75 per hour $52.50 $397,800 7,800 Variable overhead (per direct labor-hour) Fixed overhead (per month) Expected activity (direct labor-hours) Actual results Direct material (purchased and used) Direct labor Variable overhead Fixed overhead Units produced (actual) 3,100 ounces at $13.50 per ounce 4,900 hours at $60.75 per hour $242,550 $313,950 1,000 units 4,700 ounces at $17.25 per ounce 7,400 hours at $76.50 per hour $378,510 $396,000 1,200 units

Q: compensation in commodatum.

A: Commodatum is nothing but a roman law which states that commodatum is an agreement which is a type…

Q: Over absorption overhead occurs when ?

A: Introduction: Overhead absorption is the number of indirect expenses attributed to cost components.…

Q: Over absorption overhead occurs when ?

A: Over absorption :- Over Absorption means the actual Expenditure incurred lower then expected. For…

Q: Understand thedifferences between directand indirect costs

A: Cost:   It refers to the economic value incurred by an organization for manufacturing a product or…

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: Give two examples of appraisal costs.

A: Appraisal costs are costs that are associated with the quality control process incurred by the…

Q: true of false: A collection of costs to be assigned is called a cost pool.

A: Activity based Costing system is a method which is used to calculate total amount of Cost by…

Q: Distinguish between discretionary fixed costs and committed fixed costs.

A: Discretionary fixed costs and committed fixed costs: Both costs are considered as fixed costs but…

Q: Explain the term internal failure costs.

A: Internal failure costs: Internal failure costs include additional production-related costs that are…

Q: Examples of transaction costs

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

Q: Giving examples, distinguish between  Direct costs and indirect costs

A: Direct Costs are the costs that can be directly traced with the goods produced. It generally…

Q: Define the term avoidable cost.

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

Q: What is underapplied overhead? Overapplied overhead?

A: The under applied overhead is explained as below,

Q: How are joint costs allocated? Explain and analyze using numerical example.

A: Joint Costs In business different costs are incurred in the production process, but in certain…

Q: What is cost allocation? Give three examples?

A: Cost allocation :Cost allocation is the allocation of cost to several cost objects such as…

Q: In order to analyze the c-v-p relationship , what types of costs should be classified ? Why?

A: C-V-P relationship means the cost volume and profit relationship. This is usually done to recognize…

Q: a range in which the relationship between the cost and its driver is still valid is call

A: Solution: A range in which the relationship between the cost and its driver is still valid is called…

Q: Describe the concept of an equivalent unit and how to compute equivalent units

A:

Q: Explain the difference between a controllable and a noncontrollable cost.

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

Q: Distinguish between indirect costs and direct costs.

A: Direct Costs and Indirect Costs are two important costs. Direct costs are those costs which are…

Q: Define Fixed charge coverage

A: The formula to compute fixed charge coverage ratio:

Q: What is meant by underapplied overhead? By overappliedoverhead?

A: Actual overhead cost: These are the indirect manufacturing costs that are actually incurred while…

Q: Classify the following fixed costs as normally being either committed or discretionary:c. Research.

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: A direct cost is a cost that is classified by     Traceability     Behaviour     Controllability…

A: Following is the answer to the given question

Q: How do you find full absorption cost

A: Absorption costing refers to the method of managerial accounting in order to capture all the costs…

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.