Overhead cost: Overhead cost is the indirect expense in a business. It is not directly involved in manufacturing or the delivery of a product. The reason why overhead cost cannot be directly linked to jobs.

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Answer 1

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Chapter 3, Problem 1Q

To determine

Overhead cost: Overhead cost is the indirect expense in a business. It is not directly involved in manufacturing or the delivery of a product.

The reason why overhead cost cannot be directly linked to jobs.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The reason is that overhead costs are typically incurred for a period rather than for a particular job like in direct material and direct labour.

Explanation of Solution

Explanation:−

Direct material and direct labour costs are generally incurred for a particular job whereas manufacturing overhead is incurred for a number of jobs and typically incurred for a period which disables the ability to trace it to a particular job.

It is critical since it supports the profit generation objective of business. Like the direct costs incurred for the business, overhead cost cannot be linked directly to the generation of profits.

Conclusion

Due to the above mentioned reasons, overhead costs cannot be directly linked to jobs.

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Tokyo's Juice Bar operates a fresh juice stand at a local shopping center. Each juice requires 3/4 pound of mixed fruits, which are expected to cost $4 per pound during the summer months. Shop employees are paid $8 per hour. Variable overhead consists of utilities and supplies, and the variable overhead rate is $0.09 per minute of direct labor (DL) time. Each juice should require 4 minutes of direct labor time. 1. What is the standard cost of direct materials for each juice? 2. What is the standard cost of direct labor for each juice? 3. What is the standard cost of variable overhead for each juice?

In 2015, Kingston Technologies' research and development department developed a new software algorithm. The research and development costs totaled $95,000. The software was patented on July 1, 2015. Legal costs to acquire the patent were $13,500. Kingston decided to amortize the patent over a 15-year period. Kingstons fiscal year ends on June 30. On July 1, 2020, a competitor released a new software that rendered Kingston's patent obsolete. 1. How much amortization expense should Kingston report in each year through the year ended June 30, 2020? 2. What amount of loss should Kingston report in the year ended June 30, 2021?

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Answer 2

Question

100%

Chapter 3, Problem 1Q

To determine

Overhead cost: Overhead cost is the indirect expense in a business. It is not directly involved in manufacturing or the delivery of a product.

The reason why overhead cost cannot be directly linked to jobs.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The reason is that overhead costs are typically incurred for a period rather than for a particular job like in direct material and direct labour.

Explanation of Solution

Explanation:−

Direct material and direct labour costs are generally incurred for a particular job whereas manufacturing overhead is incurred for a number of jobs and typically incurred for a period which disables the ability to trace it to a particular job.

It is critical since it supports the profit generation objective of business. Like the direct costs incurred for the business, overhead cost cannot be linked directly to the generation of profits.

Conclusion

Due to the above mentioned reasons, overhead costs cannot be directly linked to jobs.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

100%

Chapter 3, Problem 1Q

To determine

Overhead cost: Overhead cost is the indirect expense in a business. It is not directly involved in manufacturing or the delivery of a product.

The reason why overhead cost cannot be directly linked to jobs.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The reason is that overhead costs are typically incurred for a period rather than for a particular job like in direct material and direct labour.

Explanation of Solution

Explanation:−

Direct material and direct labour costs are generally incurred for a particular job whereas manufacturing overhead is incurred for a number of jobs and typically incurred for a period which disables the ability to trace it to a particular job.

It is critical since it supports the profit generation objective of business. Like the direct costs incurred for the business, overhead cost cannot be linked directly to the generation of profits.

Conclusion

Due to the above mentioned reasons, overhead costs cannot be directly linked to jobs.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

100%

Chapter 3, Problem 1Q

To determine

Overhead cost: Overhead cost is the indirect expense in a business. It is not directly involved in manufacturing or the delivery of a product.

The reason why overhead cost cannot be directly linked to jobs.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The reason is that overhead costs are typically incurred for a period rather than for a particular job like in direct material and direct labour.

Explanation of Solution

Explanation:−

Direct material and direct labour costs are generally incurred for a particular job whereas manufacturing overhead is incurred for a number of jobs and typically incurred for a period which disables the ability to trace it to a particular job.

It is critical since it supports the profit generation objective of business. Like the direct costs incurred for the business, overhead cost cannot be linked directly to the generation of profits.

Conclusion

Due to the above mentioned reasons, overhead costs cannot be directly linked to jobs.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

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Answer 6

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Answer 7

Chapter 3, Problem 1Q

To determine

Overhead cost: Overhead cost is the indirect expense in a business. It is not directly involved in manufacturing or the delivery of a product.

The reason why overhead cost cannot be directly linked to jobs.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The reason is that overhead costs are typically incurred for a period rather than for a particular job like in direct material and direct labour.

Explanation of Solution

Explanation:−

Direct material and direct labour costs are generally incurred for a particular job whereas manufacturing overhead is incurred for a number of jobs and typically incurred for a period which disables the ability to trace it to a particular job.

It is critical since it supports the profit generation objective of business. Like the direct costs incurred for the business, overhead cost cannot be linked directly to the generation of profits.

Conclusion

Due to the above mentioned reasons, overhead costs cannot be directly linked to jobs.

Answer 8

Chapter 3, Problem 1Q

To determine

Overhead cost: Overhead cost is the indirect expense in a business. It is not directly involved in manufacturing or the delivery of a product.

The reason why overhead cost cannot be directly linked to jobs.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The reason is that overhead costs are typically incurred for a period rather than for a particular job like in direct material and direct labour.

Explanation of Solution

Explanation:−

Direct material and direct labour costs are generally incurred for a particular job whereas manufacturing overhead is incurred for a number of jobs and typically incurred for a period which disables the ability to trace it to a particular job.

It is critical since it supports the profit generation objective of business. Like the direct costs incurred for the business, overhead cost cannot be linked directly to the generation of profits.

Conclusion

Due to the above mentioned reasons, overhead costs cannot be directly linked to jobs.

Answer 9

Chapter 3, Problem 1Q

To determine

Overhead cost: Overhead cost is the indirect expense in a business. It is not directly involved in manufacturing or the delivery of a product.

The reason why overhead cost cannot be directly linked to jobs.

Answer 10

Expert Solution & Answer

Answer to Problem 1Q

Solution: The reason is that overhead costs are typically incurred for a period rather than for a particular job like in direct material and direct labour.

Answer 11

Expert Solution & Answer

Answer 12

Expert Solution & Answer

Answer 13

Explanation of Solution

Explanation:−

Direct material and direct labour costs are generally incurred for a particular job whereas manufacturing overhead is incurred for a number of jobs and typically incurred for a period which disables the ability to trace it to a particular job.

It is critical since it supports the profit generation objective of business. Like the direct costs incurred for the business, overhead cost cannot be linked directly to the generation of profits.