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

Velocity Industries acquired a machine for $310,000, with a salvage value of $25,000 and a useful life of 8 years. The total expected production capacity is 450,000 units. The machine produced 45,000 units in year 1 and 38,000 units in year 2. Using the units of activity method, determine the depreciation expense for year 2.

??

A company has a total cost of $50.00 per unit at a volume of 100,000 units. The variable cost per unit is $20.00. What would the price be if the company expected a volume of 120,000 units and used a markup of 50%?

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.