0
What else can I help you with?
What is manufacturing overhead?
cost incurred for manufacturing of good and services. It is also called Factory overheads. Example Factory rent,Factory workers salary,other cost which is incurred in factory to manufacture a Product
What is direct labor plus overheads called?
Direct labor plus overheads called the conversion cost of manufacturing the products units as these costs are incurred to convert raw material into finished goods and without this cost there is no finished goods.
What is administrative overheads?
Administrative overheads are the indirect expenses used to run the business and expenses incurred to run the day to day business activities which does not have direct relationship with the manufacturing of product but without it business cannot be run like office administration staff salaries etc
What is the meaning of interim invoices?
Interim invoices are used in handling taxes. The meaning of interim invoices is a request for payment on costs incurred during a process.
Why factory overhead cost is applied on production?
Factory overheads are incurred only and only due to production of the goods. That is why the factory overhead cost is applied to production.
What is meant by the terms under-absorption and over-absorption of fixed overheads how they arise and how they are calculated?
Over or Under AbsorptionNote that as long as planned level of activity and the actual level of activity is not the same there is always an Over or Under Absorption situationThis is because overhead absorption rate is set at the start of the period based upon an expected level of production and that during the period, the level of output and or overheads will be different from the planned overheads and or output.OVER-absorption occurs when the total overhead recovered or absorbed is GREATER than the actual level of overheads for the period.UNDER-absorption occurs when the total overheads recovered or absorbed is LESS than the actual overheads incurred in the period.
How do you identify under and over absorption?
Over or Under AbsorptionNote that as long as planned level of activity and the actual level of activity is not the same there is always an Over or Under Absorption situationThis is because overhead absorption rate is set at the start of the period based upon an expected level of production and that during the period, the level of output and or overheads will be different from the planned overheads and or output.OVER-absorption occurs when the total overhead recovered or absorbed is GREATER than the actual level of overheads for the period.UNDER-absorption occurs when the total overheads recovered or absorbed is LESS than the actual overheads incurred in the period.
A debit balance in the manufacturing overhead account at year end means?
It means you have incurred more actual manufacturing overhead costs than you have applied to your products (i.e., manufacturing overhead is underapplied).
Is depreciation on manufacturing equipment a variable cost?
Depreciation of manufacturing equipment is fixed cost because that cost will incurred no matter how much units produced.
Difference between manufacturing cost and nonmanufacturing cost?
Manufacturing Cost: These are those costs which are directly involved in manufacturing of product or service. It includesDirect MaterialDirect LabourManufacturing OverheadsNon Manufacturing Cost: These are those costs which are not incurred for manufacturing of product. It includesSelling and marketing expencesAdministration expences
What are the cost drivers which are used in apportioning overheads cost under activity based budgeting?
Cost drivers are activities due to which cost incurred for expample as many time as machines are setup for production as many time machine setup cost will be incurred so matchine setup is cost driver.
What are the Importance of cost accounting to manufacturing?
How else would you know what costs really were and where they were incurred, and hence how to charge a price that produced a profit?
