Which of the following is not a reason to allocate overhead? Some overhead costs are seasonal and should be spread over production for the entire year.   Unlike direct materials and direct labor, the amount of overhead actually incurred may not be known at the time a job is being worked on.   Allocation is more accurate than tracing items directly to jobs.   Manufacturing overhead is an indirect cost that cannot be physically or economically traced back to a specific item.

Q: Which of the following statements is true? a) Using either direct labor hours or direct labor costs…

A: Approach to solving the question: Analyze the question. Detailed explanation:Cost drivers are the…

Q: What is a normal costing system, and why do companies tend to use a normal costing system to apply…

A: Cost is the total amount that has been spent on production of goods or rendering of services. Cost…

Q: Which of the following statements related to job cost sheets is FALSE? a. None of the given answers…

A: A job cost sheet is a document prepared by the companies which uses job order costing system. It…

Q: In a job order cost system, a decrease to Manufacturing Overhead will be accompanied by an increase…

A: Factory overhead is the indirect cost incurred in the process of manufacturing. Therefore, it is…

Q: Which of the following statements is false? a. Actual overhead costs always enter the…

A: Overhead is the amount of outlay incurred on the production process. The costs associated to the…

Q: Traditional overhead allocations result in which of the following situations?      a. Overhead costs…

A: The overhead cost under traditional costing is based on single predetermined overhead rate.

Q: If the activities causing overhead costs are different across different departments and products,…

A: Answer: True

Q: Determining the basis for applying manufacturing overhead costs involves A. primarily the…

A: Manufacturing Overhead is the indirect cost incurred on Manufacturing activity in a factory . It is…

Q: Which of the following statements related to job cost sheets is FALSE ? a. Applied manufacturing…

A: Cost sheet:- It is the representation of all fixed, variable, direct and indirect cost which…

Q: Why do businesses apply overhead to tasks using fixed rates rather than real manufacturing overhead…

A: This question deals with real manufacturing overhead costs:

Q: Google applies overhead to product costs. What account(s) is(are) used to eliminate overapplied or…

A: Definition: Cost of goods sold: Cost of goods sold is the total of all the expenses incurred by a…

Q: Which of the following would be an inappropriate activity base for allocating factory overhead…

A: Lets understand the basics.Factory overhead is an expense of factory which is not directly allocable…

Q: Manufacturing overhead: Select one: a. includes all selling costs. O b. should not be assigned to…

A: Meaning of Manufacturing Overheads Manufacturing overheads are the indirect costs which are incurred…

Q: why is direct labor a poor base for allocating overhead in many companies?

A: Process accounts:   Cost sheet is prepared to arrive at the cost price of the product after taking…

Q: Which of the following statements about using a plantwide overhead rate based on direct labor is…

A: Plantwide overhead rate based on direct labour means overhead rate to be calculated which is based…

Q: Which of the following statements are true? 1. A cost driver is a factor, such as machine-hours,…

A: Direct costs are those costs which are directly involved in converting raw material into finished…

Q: When the amount of overapplied factory overhead is significant, the entry to close overapplied…

A: Under the normal costing system, overhead is applied to all jobs worked on during the period at a…

Q: Discuss why businesses apply overhead to projects using predefined (factory) rates rather than real…

A: This question deals with predefined (factory) rates and real manufacturing overhead expenses.

Q: Why would a manufacturing firm switch from direct labor hours to machine hours as the cost driverfor…

A: Direct labor:   Direct labor includes the wages of the employees who are directly involved in…

Q: What are the shortcomings of waiting untilthe actual factory overhead expenses areknown before…

A: Factory Overheads mean indirect costs.

Q: Which of the following statements are true? I. In a job-order costing system, indirect labor is…

A: Notes : The expense of manufacturing each product is calculated using the job order technique of…

Q: Which of the following statements is TRUE about job - order costing system: a. Actual direct labor…

A: In order to determine the cost of specific equipment, the product which is identifiable, the job…

Q: One of the disadvantages of the departmental and the plantwide overhead rate methods is that OA…

A: An overhead rate method is a cost accounting technique used by businesses to allocate and apply…

Q: Accounting Direct labor or machine hours may not be the appropriate cost driver for overhead in all…

A: Activity based costing is the method used by the entities because it helps in reducing the…

Q: Assigning manufacturing overhead to a specific job is complicated by all of the following except:

A: Assigning manufacturing overhead to a specific job is complicated by all of the factors listed in…

Q: Under a job order costing system, individual jobs are charged with actual overhead costs when they…

A:

Q: The printing industry has become highly automated. Job costing in the printing industry would likely…

A: Job Costing is a type of Cost Accounting which assigns manufacturing cost to specific product or…

Q: Discuss the reason why companies use predetermined (factory) overhead rates rather than actual…

A: Manufacturing overheads are the manufacturing costs that could not be directly associated with each…

Q: Which of the following is correct with respect to closing out underapplied manufacturing overhead to…

A: Overhead are those expenses which are not directly attributable to the production of goods or…

Q: תתוחוsכסו Which of the following is correct with respect to closing out overapplied manufacturing…

A: The Correct option is d.

Q: Some companies use labor cost to apply factory overhead to jobs. Identify another factor (or base) a…

A: The overheads or the indirect cost must be allocated to the respective departments in order to find…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.