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

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Similar questions

Which of the following statement(s) islare correct? I. Non-manufacturing costs are expensed as incurred II. Direct labor is an example of period cost III. Depreciation expense on factory equipment is part of factory overhead cost O A. III only B. Il & III only O C. I only O D. I & III only
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
Nonmanufacturing costs include direct labor and indirect labor. O True O False
What would cost of good sold be if under or overapplied overhead were closed to cost of goods sold?
Overhead costs are overapplied if the amount applied to Work in Process is: O a. less than actual overhead incurred. O b. None of the given answer is correct c. greater than actual overhead incurred. Fin O d. greater than estimated overhead. O e. less than estimated overhead.
18) In traditional approach, overheads are absorbed based on: a. All the options listed b. Direct labour c. Direct wages d. Machine hours
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.
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