Mileage is a overhead cost as mileage of cars or trucks which are not directly related with the manufacturing of units of products but required to transfer raw material from one place to another so it is overhead cost rather direct cost.
Total cost/ full cost which include Prime Cost *Direct Labour cost *Direct Material Cost *Direct expenses Production Overhead *Variable Overhead *Fixed Overhead Selling and Distribution cost Administration Cost
no direct cost is not an overhead
debit factory overhead, credit wages payable
what are the differences between direct cost and indirect cost in financial accounting
No, Conversion cost is the sum of direct labor cost and manufacturing overhead cost.
Total cost/ full cost which include Prime Cost *Direct Labour cost *Direct Material Cost *Direct expenses Production Overhead *Variable Overhead *Fixed Overhead Selling and Distribution cost Administration Cost
no direct cost is not an overhead
Predetermined overhead rate based on direct labor cost = Budgeted overhead cost / direct labor cost / 100 Predetermined overhead rate based on direct labor cost = budgeted overhead cost / direct labor hours.
false, direct labor and manufacturing overhead = conversion cost
debit factory overhead, credit wages payable
what are the differences between direct cost and indirect cost in financial accounting
Variable manufacturing overhead cost per direct labor hour means the variable overhead cost spent for one single labor hour and formula is as follows:Variable overhead cost per labor hour = total variable overhead cost / Total direct labor hours
Sum of direct materials and direct labor
Direct Material Direct Labor direct Factory Overhead
No, Conversion cost is the sum of direct labor cost and manufacturing overhead cost.
Overhead rate : Overhead rate = total overhead cost / direct labor OR Overhead rate = Total overhead cost / machine hours.
1 - Raw material cost 2 - Direct labor cost 3 - Overhead Cost