Answered: What are conversion costs? A) A fixed…

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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Which cost accounting method assumes that the cost of production is driven by the number of units produced? A. Activity-Based Costing (ABC)B. Standard CostingC. Absorption CostingD. Variable Costing
Which cost accounting method assumes that the cost of production is driven by the number of units produced? A. Activity-Based Costing (ABC)B. Standard CostingC. Absorption CostingD. Variable Costing
In terms of cost behaviour, telephone expense and direct materials are classified as: a. Variable and fixed, respectively b. Fixed and variable, respectively c. Mixed and fixed, respectively d. Mixed and variable, respectively
Spree Party Lights overhead expenses are: Indirect material, pounds per unit 0.15 Indirect material, cost per pound $2 Indirect labor hours 1 Indirect labor rate per hour $16.00 Variable maintenance per unit $0.70 Variable utilities per unit $0.10 Supervisor salaries $11,000 Maintenance salaries $8,000 Insurance $3,000 Depreciation $1,500 Prepare a manufacturing overhead budget if the number of units to produce for January, February, and March are 2,500, 3,000, and 2,600, respectively. Spree Party Lights Manufacturing Overhead Budget For the Quarter Ending January - March January February March Units to Produce Variable Costs $4 Total Variable Manufacturina Costs $1 $4
• The unit cost… a. is the total conversion costs divided by the number of units produced. b. is the total product costs divided by the number of units produced. c. product plus period cost d. is the total prime costs divided by the number of units produced. e. includes period costs.
Under variable costing, all fixed manufacturing costs are treated as a a. product cost included in the cost of goods manufactured. b. product cost included in the cost of ending inventory. c. period expense deducted from manufacturing margin. d. period expense deducted from contribution margin.
Do the engineering decisions account for the majority of product costs?
Prime cost is? A)Group of answer choices B)indirect materials cost and direct labor cost. C)direct materials cost and direct labor cost. D)direct labor cost and indirect labor cost. E)direct materials cost and indirect labor cost.
What is absorption costing and marginal costing in the context of overhead costs? Discuss the following in your answer: • The difference between absorption costing and marginal costing. • Two reasons for absorption costing.
Which of the following is not a method of cost absorption? (a) Percentage of direct material cost (b) Machine hour rate (c) Labour hour rate (d) Repeated distribution method
How is the cost per equivalent unit of production calculated?
The direct costs of materials that change with the number of units produced is an example of a fixed production cost. True or false

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What are conversion costs? A) A fixed cost. per unit. B) Raw Material and Direct Labor. C) Raw Material and Variable Cost. D) Direct Labor & Manufacturing overhead.