Direct and Indirect Costs: Manufacturing costs can be divided into two types; Direct costs and Indirect costs. Direct costs are easily traceable with the product like direct material and direct labor and indirect costs are not traceable easily like indirect material indirect labor and overheads . Manufacturing overhead costs: Manufacturing overhead cost is the pool of all indirect costs incurred for the production. These are the costs which are not directly traceable to the product. Manufacturing costs include indirect material indirect labor and overheads. To discuss: The reason behind allocation of overhead costs instead of tracing these costs like direct material and direct labor costs.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter C, Problem 1DQ

To determine

Concept Introduction:

Direct and Indirect Costs:

Manufacturing costs can be divided into two types; Direct costs and Indirect costs. Direct costs are easily traceable with the product like direct material and direct labor and indirect costs are not traceable easily like indirect material indirect labor and overheads.

Manufacturing overhead costs:

Manufacturing overhead cost is the pool of all indirect costs incurred for the production. These are the costs which are not directly traceable to the product. Manufacturing costs include indirect material indirect labor and overheads.

To discuss:

The reason behind allocation of overhead costs instead of tracing these costs like direct material and direct labor costs.

Expert Solution & Answer

Answer to Problem 1DQ

Solution:

The reason behind allocation of overhead costs instead of tracing these costs like direct material and direct labor costs is that the overhead costs cannot be directly traced to the product.

Explanation of Solution

Manufacturing costs can be divided into two types; Direct costs and Indirect costs. Direct costs are easily traceable with the product like direct material and direct labor and indirect costs are not traceable easily like indirect material indirect labor and overheads.

Hence, the reason behind allocation of overhead costs instead of tracing these costs like direct material and direct labor costs is that the overhead costs cannot be directly traced to the product.

Conclusion

Hence, the overhead costs cannot be directly traced to the product.

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!

Students have asked these similar questions

Please provide the accurate answer to this general accounting problem using appropriate methods.

general accounting

Jennifer Industries allocates overhead based on direct labor costs. Assume Jennifer expects to incur a total of $875,000 in overhead costs and $625,000 in direct labor costs. Actual overhead costs incurred totaled $890,000, and actual direct labor costs totaled $640,000. Jennifer's predetermined overhead rate is: a. 140.00% of direct labor cost. b. 128.13% of direct labor cost. c. 138.90% of direct labor cost. d. 130.95% of direct labor cost.

Answer 2

Question

Chapter C, Problem 1DQ

To determine

Concept Introduction:

Direct and Indirect Costs:

Manufacturing costs can be divided into two types; Direct costs and Indirect costs. Direct costs are easily traceable with the product like direct material and direct labor and indirect costs are not traceable easily like indirect material indirect labor and overheads.

Manufacturing overhead costs:

Manufacturing overhead cost is the pool of all indirect costs incurred for the production. These are the costs which are not directly traceable to the product. Manufacturing costs include indirect material indirect labor and overheads.

To discuss:

The reason behind allocation of overhead costs instead of tracing these costs like direct material and direct labor costs.

Expert Solution & Answer

Answer to Problem 1DQ

Solution:

The reason behind allocation of overhead costs instead of tracing these costs like direct material and direct labor costs is that the overhead costs cannot be directly traced to the product.

Explanation of Solution

Manufacturing costs can be divided into two types; Direct costs and Indirect costs. Direct costs are easily traceable with the product like direct material and direct labor and indirect costs are not traceable easily like indirect material indirect labor and overheads.

Hence, the reason behind allocation of overhead costs instead of tracing these costs like direct material and direct labor costs is that the overhead costs cannot be directly traced to the product.

Conclusion

Hence, the overhead costs cannot be directly traced to the product.

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 3

Question

Chapter C, Problem 1DQ

To determine

Concept Introduction:

Direct and Indirect Costs:

Manufacturing costs can be divided into two types; Direct costs and Indirect costs. Direct costs are easily traceable with the product like direct material and direct labor and indirect costs are not traceable easily like indirect material indirect labor and overheads.

Manufacturing overhead costs:

Manufacturing overhead cost is the pool of all indirect costs incurred for the production. These are the costs which are not directly traceable to the product. Manufacturing costs include indirect material indirect labor and overheads.

To discuss:

The reason behind allocation of overhead costs instead of tracing these costs like direct material and direct labor costs.

Expert Solution & Answer

Answer to Problem 1DQ

Solution:

The reason behind allocation of overhead costs instead of tracing these costs like direct material and direct labor costs is that the overhead costs cannot be directly traced to the product.

Explanation of Solution

Manufacturing costs can be divided into two types; Direct costs and Indirect costs. Direct costs are easily traceable with the product like direct material and direct labor and indirect costs are not traceable easily like indirect material indirect labor and overheads.

Hence, the reason behind allocation of overhead costs instead of tracing these costs like direct material and direct labor costs is that the overhead costs cannot be directly traced to the product.

Conclusion

Hence, the overhead costs cannot be directly traced to the product.

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 4

Question

Chapter C, Problem 1DQ

To determine

Concept Introduction:

Direct and Indirect Costs:

Manufacturing costs can be divided into two types; Direct costs and Indirect costs. Direct costs are easily traceable with the product like direct material and direct labor and indirect costs are not traceable easily like indirect material indirect labor and overheads.

Manufacturing overhead costs:

Manufacturing overhead cost is the pool of all indirect costs incurred for the production. These are the costs which are not directly traceable to the product. Manufacturing costs include indirect material indirect labor and overheads.

To discuss:

The reason behind allocation of overhead costs instead of tracing these costs like direct material and direct labor costs.

Expert Solution & Answer

Answer to Problem 1DQ

Solution:

The reason behind allocation of overhead costs instead of tracing these costs like direct material and direct labor costs is that the overhead costs cannot be directly traced to the product.

Explanation of Solution

Manufacturing costs can be divided into two types; Direct costs and Indirect costs. Direct costs are easily traceable with the product like direct material and direct labor and indirect costs are not traceable easily like indirect material indirect labor and overheads.

Hence, the reason behind allocation of overhead costs instead of tracing these costs like direct material and direct labor costs is that the overhead costs cannot be directly traced to the product.

Conclusion

Hence, the overhead costs cannot be directly traced to the product.

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

Chapter C, Problem 1DQ

To determine

Concept Introduction:

Direct and Indirect Costs:

Manufacturing costs can be divided into two types; Direct costs and Indirect costs. Direct costs are easily traceable with the product like direct material and direct labor and indirect costs are not traceable easily like indirect material indirect labor and overheads.

Manufacturing overhead costs:

Manufacturing overhead cost is the pool of all indirect costs incurred for the production. These are the costs which are not directly traceable to the product. Manufacturing costs include indirect material indirect labor and overheads.

To discuss:

The reason behind allocation of overhead costs instead of tracing these costs like direct material and direct labor costs.

Expert Solution & Answer

Answer to Problem 1DQ

Solution:

The reason behind allocation of overhead costs instead of tracing these costs like direct material and direct labor costs is that the overhead costs cannot be directly traced to the product.

Explanation of Solution

Manufacturing costs can be divided into two types; Direct costs and Indirect costs. Direct costs are easily traceable with the product like direct material and direct labor and indirect costs are not traceable easily like indirect material indirect labor and overheads.

Hence, the reason behind allocation of overhead costs instead of tracing these costs like direct material and direct labor costs is that the overhead costs cannot be directly traced to the product.

Conclusion

Hence, the overhead costs cannot be directly traced to the product.

Answer 6

Chapter C, Problem 1DQ

To determine

Concept Introduction:

Direct and Indirect Costs:

Manufacturing costs can be divided into two types; Direct costs and Indirect costs. Direct costs are easily traceable with the product like direct material and direct labor and indirect costs are not traceable easily like indirect material indirect labor and overheads.

Manufacturing overhead costs:

Manufacturing overhead cost is the pool of all indirect costs incurred for the production. These are the costs which are not directly traceable to the product. Manufacturing costs include indirect material indirect labor and overheads.

To discuss:

The reason behind allocation of overhead costs instead of tracing these costs like direct material and direct labor costs.

Expert Solution & Answer

Answer to Problem 1DQ

Solution:

The reason behind allocation of overhead costs instead of tracing these costs like direct material and direct labor costs is that the overhead costs cannot be directly traced to the product.

Explanation of Solution

Manufacturing costs can be divided into two types; Direct costs and Indirect costs. Direct costs are easily traceable with the product like direct material and direct labor and indirect costs are not traceable easily like indirect material indirect labor and overheads.

Hence, the reason behind allocation of overhead costs instead of tracing these costs like direct material and direct labor costs is that the overhead costs cannot be directly traced to the product.

Conclusion

Hence, the overhead costs cannot be directly traced to the product.

Answer 7

Chapter C, Problem 1DQ

To determine

Concept Introduction:

Direct and Indirect Costs:

Manufacturing costs can be divided into two types; Direct costs and Indirect costs. Direct costs are easily traceable with the product like direct material and direct labor and indirect costs are not traceable easily like indirect material indirect labor and overheads.

Manufacturing overhead costs:

Manufacturing overhead cost is the pool of all indirect costs incurred for the production. These are the costs which are not directly traceable to the product. Manufacturing costs include indirect material indirect labor and overheads.

To discuss:

The reason behind allocation of overhead costs instead of tracing these costs like direct material and direct labor costs.

Answer 8

Expert Solution & Answer

Answer to Problem 1DQ

Solution:

The reason behind allocation of overhead costs instead of tracing these costs like direct material and direct labor costs is that the overhead costs cannot be directly traced to the product.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Manufacturing costs can be divided into two types; Direct costs and Indirect costs. Direct costs are easily traceable with the product like direct material and direct labor and indirect costs are not traceable easily like indirect material indirect labor and overheads.

Hence, the reason behind allocation of overhead costs instead of tracing these costs like direct material and direct labor costs is that the overhead costs cannot be directly traced to the product.