What does the following statement mean? “Accounting for overhead involves an important costbenefit issue.” Why is that issue important?

Q: This is a cost accounting question.   What are the general ledger accounts required for the…

A: General ledger is prepared to post the transactions of journal entries. It includes posting in debit…

Q: Which of the following is false about actual overhead while using normal costing?

A: In  normal cost system, Unit cost is determined  by adding actual direct materials, actual direct…

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: What is a predetermined overhead rate, and how is it computed?

A: Predetermined overhead rate: Predetermined overhead rate is calculated befor the period begins. This…

Q: Define the terms under-allocated and over-allocated overhead. What factors contribute to each…

A: Expenses associated with manufacturing overhead: "Manufacturing overhead costs, also known as…

Q: Describe an important cost-benefit issue involving accuracy versus timeliness in accounting for…

A:

Q: What is a predetermined overhead rate and explain why many companies use it?

A: The outlays that are not directly related to the production are known as overheads. These can be of…

Q: Define manufacturing overhead costs?

A: Step 1: Overheads are the costs that are incurred to run a business. Some of the overheads are rent,…

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

A:

Q: Which accounts are adjusted for the under-allocated or over-allocated overhead in JIT costing?

A: Just-in-time manufacturing system:     Just-in-time (JIT) manufacturing system is an approach to…

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

A:

Q: What is the formula to compute the predetermined overhead allocation rate?

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

Q: Under an activity based costing system, what is the per-unit overhead cost of Z

A: Activity based costing is a management accounting technique which used to allocate overhead cost and…

Q: What are the three common approaches for assigning overhead costs to products?

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Q: In what way does the accounting treatment of direct materials and direct labor costs differ from…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: What is a predetermined overhead rate, and what is it used for?

A: A overhead  is an indirect  expense  incurred  to operate the  organization

Q: Define manufacturing overhead costs with an example?

A: All manufacturing costs that are related to the production cost, but that is not directly related…

Q: Under an activity-based costing system, what is the per-unit overhead cost of Z?

A: Activity-based Costing which is more popularly known as the ABC method is an accounting method in…

Q: Which of the following statements about manufacturing cost flows is false? a. Direct materials,…

A: As per our protocol we provide solution to the one question only but you have asked two multiple…

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 is meant by the term overhead application rate ?

A: Overhead: It refers to an ongoing or continuing expense that is centrally incurred by a company in…

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: Would you expect the amount of applied overhead for a period to equal the actual overhead costs of…

A: Actual overhead: The actually occurred indirect manufacturing cost is called actual overhead.…

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: why is adjustment necessary for under and over absorption of overheads in the absorption costing…

A: Here discuss about the details of adjustment which are needed for the over and under absorption of…

Q: What is meant by the statement that “labor costing is related to motion costing”

A: Labor Cost- Labor is the only factor in the organization which have unlimited productivity. Labor…

Q: How do I calculate the overhead allocations?

A: Cost allocation: Cost allocation is a process of assigning or allocating indirect costs to each and…

Q: Why are overhead costs allocated to products and not traced to products as direct materials and…

A: Given: The allocated overhead cost of products is not traced as direct materials to products.

Q: In what way does the accounting treatment of factory overhead differ from that of direct materials…

A: Factory overhead is defined as cost incurred during the process of manufacturing but not including…

Q: How do you explain the phrase," Fixed overheads consist of costs which are not subject to change…

A: The costs incurred on the production are distinguished as fixed and variable cost.

Q: Can you give us the actual formula for determining the overhead rate and not just the two components…

A: Overhead cost: These are the operating expenses of the business, which cannot be linked directly…

Q: Why are fixed-overhead costs sometimes called capacity-producing costs?

A: Overhead costs Overhead cost or overhead expenses refer to the cost which is used to increase the…

Q: Explain an example of manufacturing overhead.

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

Q: Is a standard cost an estimated cost? What is the primary objective of employing standard costs in a…

A: Note: As per our guidelines, only the first question can be answered.   Standard Cost & Its…