The cost object of the plantwide overhead rate method is:Multiple ChoiceOThe production activities of the company.The unit of product.The time period.The production departments of the company.Manufacturing cost pools. Galla Incorporated needs to determine a price for a new product. Galla desires a 25% markup on the total cost of theproduct. Galla expects to sell 5,000 units. Additional information is as follows:Fixed Costs (total)Variable Costs per UnitDirect materialsDirect labor$ 21 Overhead22 General and administrative2026OverheadGeneral and administrativeUsing the total cost method what price should Galla charge?$ 45,00018,000

An overhead rate, also known as an overhead absorption rate or predetermined overhead rate, is a…

Answered: The cost object of the plantwide…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Asap Which of the following is not a factory overhead allocation method? a.activity-based costingb.factory costingc.single plantwide rated.multiple production department rates
Costs that are incurred as part of the manufacturing process, but are not clearly traceable to the specific unit of product or batches of product, are called a. Period costs. d. Operating expenses. b. Factory overhead. e. Fixed costs. c. Variable costs.
24: Seat Belt Inc., produces three sizes of seat belts: small, medium, and large. A seat belt pattern is first stenciled onto fabric in the Pattern Department. The stenciled patterns are then sent to the Cut and Sew Department, where the seat belt is cut and sewed together. Seat Belt Inc. uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows: Overhead Dollars Direct Labor Hours Pattern Department: Cut and Sew Department Overhead: 40,000 dh 60,000 dlb $300,000 $600,000 $900,000 Totals: 100,000 The Company decides to use the Multiple Department Overhead method, and Direct Labor Hours are used to allocate the overhead. We know the following for each type of seatbelt: Small Medium 1.0 dlh 1.5 dlb 2.5 dlh Large 2.0 dlh 3.0 dlb 5.0 dla Pattern Department: Cut and Sew Department: 1.5 dla 2.5 dlh 4.0 dlk Total Per Unit Part I: Calculate the Departmental Factory Overhead Rate for each…
The process of assigning overhead costs to the jobs that are worked on is commonly called: O A. Overhead cost distribution B. Overhead cost apportionment C. Service department cost allocation D. Overhead application
During production, how are the costs in process costing accumulated?A. to cost of goods soldB. to each individual productC. to manufacturing overheadD. to each individual department
How does the activity-based costing method differ from the single plantwide and the multiple production department FOH rate methods?
In activity-based costing, the activity rate for an activity cost pool is computed by dividing the total overhead cost in the activity cost pool by: Multiple Choice the direct labor-hours required by the product. the machine-hours required by the product. the total activity for the activity cost pool. the total direct labor-hours for the activity cost pool.
Which method of determining operating income is used internally for decision making and considers fixed factory overhead a period expense?
Which costing method is likely to provide the most accurate product cost? a. Volume-based costing using direct labor hours to allocate overhead b. Volume-based costing using a plantwide overhead rate c. Normal costing using a plantwide overhead rate d. Activity-based costing
1. Overhead is most often applied to production on the basis ofa. direct labor hours.b. machine hours.c. raw material usage.d. number of units made.e. direct labor costs.

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The cost object of the plantwide overhead rate method is: Multiple Choice The production activities of the company. The unit of product. The time period.