Would you expect the amount of applied overhead for a period to equal the actual overhead costs of the period? Why or why not?

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: How does the planning of fixed overhead costs differ from the planning of variable overhead costs?

A: Variable cost: The cost which fluctuates on the basis of the output level produced. The variable…

Q: There must be a correlation between the activity and changes in the amount of overhead.   True /…

A: Correlation:-It refers to the statistical relationship between two variables or activities.…

Q: How is the predetermined overhead allocation rate determined?

A: Predetermined overhead allocation rate: Predetermined overhead refers to the allocation rate that is…

Q: how do I find total over- or underapplied fixed manufacturing overhead?

A: Overhead: Overhead refers to the costs, which are utilized in business activities, however cannot be…

Q: What does the following statement mean? “Accounting for overhead involves an important costbenefit…

A: Overheads are typically accounted by accumulating costs and dividing the total costs by the total…

Q: Formula for FIxed Overhead How do you find fixed overhead?  What is the formula?

A: Overheads refers to the total cost of indirect materials, indirect labour and indirect expenses.…

Q: How is predetermined overhead rate established? How is it used to apply overhead?

A:

Q: Explain the benefits of using a predetermined overhead rate instead of an actual overhead rate.

A:

Q: Is it possible to have under- or overapplied overhead costs in a process costing system? Explain.

A: Process Costing: Process costing is a method of cost accounting, which is used when the production…

Q: How do you get total of period cost?

A: Period Costs are not directly associated with the finished products manufactured, rather associated…

Q: Which types of overhead allocation methods result in the use of more than one overhead rate during…

A: The objective of the question is to identify the overhead allocation methods that result in the use…

Q: What is the standard variable overhead rate and standard fixed overhead rate?

A: The overhead rate is calculated by dividing total indirect costs (also known as overhead) for a…

Q: What are the justifications for using practical capacity as the denominator volume when…

A: Fixed cost volume variance: The fixed cost volume variance is the difference between the budgeted…

Q: What does it means when the Overhead rates in the direct method have a figure which is higher than…

A: Overheads: It refers to the business indirect expenses that are required to run a business activity.…

Q: What adjustment is made for underapplied overhead on the schedule of CoGS? What adjustment is made…

A: Underapplied overhead is added to cost of goods sold thus increases the total cost of goods sold.

Q: How do you calculate the predetermined overhead rate do you have an example

A: An allocation rate used to estimate the manufacturing costs is termed as predetermined overhead…

Q: What are the standard variable and fixed overhead rates?

A: Overhead is computed by dividing an allocation measure's overall indirect expenses (also known as…

Q: Describe the differences in the ways that prior-period costs and output are treated under the…

A: Process costing is one of the costing technique which is used for products which has to go through…

Q: Explain why the fixed manufacturing overhead cost per unit changes when there is a change in the…

A: Manufacturing overhead costs:  "The costs, which do not relate directly with the manufacturing of…

Q: What are the two primary elements that influence the amount of overhead that is absorbed?

A: Whenever overheads are absorbed in a rate determined by objective data, the absorbed overhead should…

Q: When used as the denominator in the calculation of an overhead rate, which of the following will…

A: Capacity or activity level helps to determine the maximum or ideal level at which production can be…

Q: Explain how overhead is assigned to production when a predetermined overhead rate is used?

A: Overhead is kind of cost or expenditure which is not directly related to manufacturing but somehow…

Q: How is the predetermined overhead allocation rate used to allocate overhead?

A: Predetermined Overhead Rate: Predetermined overhead rate is a measure used to allocate the estimated…

Q: How does time and motion study works? How could this method or process quantify the labor standard…

A: Cost accounting: Cost accounting is the process of classifying, recording, analyzing and…

Q: what are the two main factors that give to over/under absorption of overhead ?

A: When overheads are absorbed in a rate depending on actual data, the absorbed overhead should be…

Q: How is the predetermined overhead allocation rate used by service companies?

A: Definition:   Manufacturing Overheads:   Predetermined manufacturing overhead rate is the rate that…

Q: If overhead applied is less than actual overhead, it is:

A: Under-applied overhead: When there is a debit balance in the manufacturing overhead account during…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.