Which of the following would not generally be considered a fixed overhead cost? a. Straight line depreciation (No); Factory insurance (No); Units of production depreciation (No) b. Straight line depreciation (Yes); Factory insurance (No); Units of production depreciation (Yes) c. Straight line depreciation (Yes); Factory insurance (Yes); Units of production depreciation (No) d. Straight line depreciation (No); Factory insurance (Yes); Units of production depreciation (No)

Which of the following would not generally be considered a fixed overhead cost? a. Straight line depreciation (No); Factory insurance (No); Units of production depreciation (No) b. Straight line depreciation (Yes); Factory insurance (No); Units of production depreciation (Yes) c. Straight line depreciation (Yes); Factory insurance (Yes); Units of production depreciation (No) d. Straight line depreciation (No); Factory insurance (Yes); Units of production depreciation (No)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

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: 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: Direct manufacturing costs include: A. B. C. OD Depreciation, Raw Materials and Maintenance of…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: cost and 'Depreciation on manufacturing equipment' is a 'depreciation on office equipment' is a…

A: Product Cost: All the manufacturing costs are categorized as product costs. Period Cost: All the…

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: Identify the following as fixed costs (F), variable costs (V), or mixed costs(M). insurance on…

A: Variable cost: A variable cost is an expense that rises or falls in direct proportion to the amount…

Q: Problem 1-45 (Static) Cost Data for Managerial Purposes (LO 1-3) [The following information applies…

A: Answer:- Differential cost:- Cost accounting uses the financial concept of differential cost, often…

Q: process costing, if an abnormal loss arises, the process account is generally: a) debited with the…

A: In process costing when goods are produced it is produce by different processes that are done in…

Q: Which of the

A: A prime cost is the total direct costs of production, including raw materials and labor.. Indirect…

Q: 6) Explain the difference between an inventoriable (Product) cost and a period cost. What potential…

A: Financial statements are statements which states the business activities performed by the company .…

Question

Which of the following would not generally be considered a fixed overhead cost?
a. Straight line depreciation (No); Factory insurance (No); Units of production depreciation
(No)
b. Straight line depreciation (Yes); Factory insurance (No); Units of production depreciation
(Yes)
c. Straight line depreciation (Yes); Factory insurance (Yes); Units of production
depreciation (No)
d. Straight line depreciation (No); Factory insurance (Yes); Units of production depreciation
(No)

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Overhead costs are overapplied if the amount applied to Work in Process is: a. equal to actual overhead incurred. b. less than actual overhead incurred. O c. None of the given answer is correct O d. equal to estimated overhead. less than estimated overhead. е.
Select and “X” in the column that corresponds to the cost classification for each of the following scenarios. Some items may fit in more than one column.
Identify the following as fixed costs (F), variable costs (V), or mixed costs(M). insurance on factory building advertising expense
What would cost of good sold be if under or overapplied overhead were closed to cost of goods sold?
Cost of Goods manufactured is equal to: A. Beginning W.I.P. + Manufacturing Cost less indirect cost applied – Ending W.I.P B. Beginning W.I.P. + Direct material used during current period + Direct Labour cost for current period + Manufacturing overhead applied for current period – Ending W.I.P C. Beginning W.I.P. less indirect manufacturing overhead + Direct material used during current period + Direct Labour cost for current period + Manufacturing overhead applied for current period – Ending W.I.P D. Beginning W.I.P. less period cost + Manufacturing Cost less indirect cost applied – Ending W.I.P
If the actual overhead costs incurred are in excess of the applied overhead costs, the difference is called what? a) Predetermined overhead rate b) Underapplied overhead c) Overapplied overhead d) Gross margin
f) ‘Process costing is a term used in cost accounting to describe one method for collecting and assigning manufacturing costs to the units produced.’ There are some statements about the process costing: An abnormal loss occurs when expected output exceeds actual output. The scrap value of an abnormal loss is credited to the process account. The allocated cost of an abnormal gain is credited to the process account. The inputs to a process less the normal loss is the expected output. The normal loss in a process is allocated a cost in order to reconcile the costs of inputs and outputs. The FIFO method assumes opening WIP is the first group of units to be completed. Therefore, opening WIP is charged separately to completed production and CPU is based on current period costs. Required: Please identify which of the above statements are false and explain the reasons.
None
Factory or Manufacturing Overhead costs would include all of the following except: A) Indirect materials B) Direct materials C) Depreciation expense D) Insurance expense
What affect would closing an OVERAPPLIED Manufacturing Overhead account to Cost of Goods Sold have on the accounting records? Group of answer choices A. Cost of Goods Sold would increase B. Net Income would decrease C. Cost of Goods Sold would decrease Both A & B
Which of the following is a period cost? a. Property taxes on the production facilities. b. The production supervisor's salary. c. Costs to ship the product to the customer. d. Depreciation of the factory equipment.