Two positions have normally been taken with respect to the recording of fixed manufacturing overhead as an ­element of the cost of plant assets constructed by a company for its own use: a.    It should be excluded completely. b.    It should be included at the same rate as is charged to normal operations. What are the circumstances or rationale that support or deny the ­application of these methods?

Q: How are the avoidable fixed MOH and the unavoidable fixed MOH calculated? I see that they equal the…

A: Fixed manufacturing overheads (MOH) is the amount of all indirect expenses or costs which are…

Q: If manufacturing overhead has been underallocated during the period, then which of the following is…

A: Lets understand the basics. Manufacturing overhead is a total of the indirect materials, indirect…

Q: Overhead costs are underapplied if the amount applied to Work in Process is: O a. greater than…

A: Choice: cost of merchandise sold   Clarification:   At the point when overhead is under-applied and…

Q: Which of the following is not likely to be treated as product cost? Depreciation on the factory…

A: Product cost means the cost of producing one unit of finished goods. Period cost means the cost that…

Q: 47- Which of the following will not be included in the cost of Machine? a. Cost of purchase paid to…

A: All the cost which are incurred to make or right to use the asset is included in the cost of asset.…

Q: rch and development costs are ordinarily considered factory related overhead costs true false

A: Research and development costs are the costs that are incurred for the better production of the…

Q: Which of the following factor is irrelevant regarding a special order

A: Overhead cost is the indirect cost that has been incurred by the company in the production process…

Q: ) what is the under-or-over allocated indirect production (overhead) costs? Discuss methods of…

A: Overhead means the all indirect expenses which were incurred in the manufacturing the product or…

Q: Which of the following is factory overhead? O a. factory equipment depreciation O b. all of these…

A: Overhead costs are the costs that are not directly traceable with an item of finished goods. These…

Q: Which of the following would be an argument for using the gross cost of plant and equipment as part…

A: Operating assets are the assets of the entity which are acquired for or used in the operations of…

Q: Which one of the following is not correct regarding the predetermined overhead rate? O a. The…

A: The predetermined overhead rate is used to allocate manufacturing overhead costs during current…

Q: Depreciation of Machinery would not be an element of factory overhead? Select one: a. True b. False

A: Factory overheads include all the indirect expenses incurred in the production process.

Q: For a manufacturing entity, which of the following is treated as business expense?  a. Raw materials…

A: Business expense are the costs incurred by the company for operating the business. Manufacturing…

Q: Which would NOT be relevant in a make- or- buy decision? a) factory deprciation b) direct materials…

A: The cost can be classified into two categories i.e fixed cost and variable cost. The  FIxed cost…

Q: line i When the manufacturing overhead costs applied in a period exceeds the actual manufacturing…

A: Yes, that's correct. In accounting, manufacturing overhead refers to the indirect costs incurred…

Q: delay A labor strike that is directly caused by the GC/CM's working relationships on a specific…

A: An excusable delay is a delay that is caused due to an unforeseeable event or by any third party or…

Q: Who of the agreed in advance is not a cost of the product? The cost of the factory's fuel The…

A: Product cost:- Product cost is the cost which incurred to manufacture a product. It means it is a…

Q: Common overheads which cannot be allocated directly to the specific departments need to be…

A: Overhead expenses are those expenses which are incurred by the company to run the day to day…

Q: Is it possible to control financial totals without physicalcontrol of materials in manufacturing?

A: Manufacturing is the process of large scale production of materials that is generally done through…

Q: 19) Which of the following is false? Material on a job is classifies as__________. A) direct or…

A: Job costing refers to a costing method that is suitable for the ascertainment of cost of the…

Q: Which one of the following is an example of a discretionary fixed cost? a. The depreciation cost of…

A: A discretionary fixed costs are those fixed which are avoidable for some shorter period and these…

Q: Product costs are the: Group of answer choices Non-manufacturing costs that are expensed in the…

A: The objective of the question is to identify the correct definition of product costs in the context…

Q: TWO (2) basis of the apportionment of overheads.

A: Generally, benefit derived by a particular department is the basis for apportionment of cost.…

Q: The cost of is not included in the cost of production a. Abnormal loss b. Direct costs c. Normal…

A: Cost of production: Cost of production may be defined as the aggregate of all the costs incurred to…

Q: Those costs which cannot be influenced by the action of a specified member of an enterprise is…

A: Cost refers to the value and money incurred by producing something or service delivery to generate…

Q: An example of a nonproduction cost is   a.wages paid to assembly-line employees. b.manufacturing…

A: Cost of production means the addition of direct material , direct labor and factory overhead.…

Q: company decide to use departmental overhead rates instead of a plantwide overhead rate?

A: Plantwide Overhead Rate: It is used to allocate overhead costs across all departments or production…

Q: Which one of the following discretionary fixed cost? The salary of the deputy manager of the factory…

A: Discretionary cost is the cost can be eliminated or reduced without  at the discretion of the…