Which of the following best describes costs assigned to the productunder the variable costing method?Direct labor (DL)Direct materials (DM)Variable selling and administrativeVariable manufacturing overheadFixed selling and administrativeFixed manufacturing overheada. DL, DM, variable selling and administrative costs, and variablemanufacturing overhead.b. DL, DM, and variable manufacturing overhead.c. DL, DM, variable manufacturing overhead, and fixed manufacturingoverhead.d. DL and DM.e. DL, DM, fixed selling and administrative, and fixed manufacturingoverhead.

The correct answer is:b. DL, DM, and variable manufacturing overhead. Explanation:Variable…

Answered: Which of the following best describes…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 16MC: Under variable costing, a unit of product includes which costs? direct material, direct labor, and...

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Under absorption costing, a unit of product includes which costs? A. direct material, direct labor, and manufacturing overhead B. direct material, direct labor, and variable manufacturing overhead C. direct material, direct labor, and fixed manufacturing overhead D. direct material, direct labor, and all variable manufacturing overhead
Which is not a step In activity-based costing? A. identify the activities performed by the organization B. identify the cost driver(s) associated with each activity C. compute a cost rate per production D. assign costs to products by multiplying the cost driver rate by the volume of the cost driver units consumed by the product
Which is not a step in analyzing the cost driver for manufacturing overhead? A. Identify the cost B. identify non-value-added costs C. analyze the effect on manufacturing overhead D. identify the correlation between the potential driver and manufacturing overhead
Which is not a task typically associated with ABC systems? A. calculating the overhead application rate for each cost pool B. applying a single cost rate C. identifying a cost driver D. more correctly allocating overhead costs
Which is the correct formula for computing the overhead rate? A. estimated use of the cost driver for production/estimated overhead for the activity B. estimated overhead for the product/estimated use of the cost driver for the activity C. estimated use of the cost driver for production/estimated overhead for the activity D. estimated overhead for the activity/estimated use of the cost driver for the activity
During production, how are the costs in process costing accumulated? A. to cost of goods sold B. to each individual product C. to manufacturing overhead D. to each individual department
What types of costs are customarily included in the cost of manufactured products under (A) the absorption costing concept and (B) the variable costing concept?
Which of the following product situations is better suited to job order costing than to process costing? A. Each product batch is exactly the same as the prior batch. B. The costs are easily traced to a specific product. C. Costs are accumulated by department. D. The value of work in process is based on assigning standard costs.
Under what circumstances might the activity-based costing method provide more accurate product costs than the multiple production department factory overhead rate method?
Under what conditions may the unit costs of materials, labor, and overhead be computed by using only one equivalent production figure?
Which of the following are prime costs? A. indirect materials, indirect labor, and direct labor B. direct labor, indirect materials, and indirect labor C. direct labor and indirect labor D. direct labor and direct materials
Describe the product life cycle. How do unit-level costs behave in relation to the product life cycle? Batch-level costs? Product-level costs? Facility-level costs?

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