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What are costs that are associated with the operation of manufacturing but are not direct labor or direct materials?
Wiki User
∙ 14y ago
Facilities Expenses - Rent, Utilities, Maintenance, Insurance
Equipment Expenses - Maintenance and Repair, Depreciation
Selling Expenses such as Advertising
Operating Expenses such as Telephone, Office Expense and Indirect Labor
Costs that add no value to product such as Shipping, Warehousing, and Quality Control
Wiki User
∙ 14y ago
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What costs other than direct materials costs and direct labor costs incurred in the manufacturing process are classified as?
Indirect costs(salaries, materials not directly involved in manufacturing), period costs(selling and admin costs)
What is direct manufacturing cost?
Direct Manufacturing costs are, Direct Labour but not overtime unless it is requested from the customer themselves. Direct materials used to produce the unit of output. Direct Overheads examples are wages of supervisors, foreman etc. All direct manufacturing costs are classed as prime costs. Hope this helps Andrew swift
Is the cost of direct materials classified as a conversion cost?
No, Conversion cost is the sum of direct labor cost and manufacturing overhead cost.
Does prime cost plus conversion cost equal the cost of manufacturing?
Total Manufacturing Cost = Direct Material + Direct Labor + Factory Overheads Prime Cost = Direct material + Direct Labor Conversion Cost = Direct Labor + Factory Overhead So yes prime cost and conversion cost is equal to total manufacturing cost
How do you charge indirect wages in manufacturing account?
that is the order of manufacturing account Direct materials + Direct wages + Direct expenses (like loyalty fees) = prime cost Production overheads = indirect wages, depreciation Non Production overheads = like Work in progress
Manufacturing overhead is 20 direct labor is 45000 and direct materials are 53000 what is the manufacturing overhead?
20
Direct materials plus direct labor plus variable overhead equals?
Total Manufacturing Cost
What costs other than direct materials costs and direct labor costs incurred in the manufacturing process are classified as?
Indirect costs(salaries, materials not directly involved in manufacturing), period costs(selling and admin costs)
What is direct manufacturing cost?
Direct Manufacturing costs are, Direct Labour but not overtime unless it is requested from the customer themselves. Direct materials used to produce the unit of output. Direct Overheads examples are wages of supervisors, foreman etc. All direct manufacturing costs are classed as prime costs. Hope this helps Andrew swift
Is raw material Direct Material?
the cost of direct materials which can be easily identified with the unit of production. For example, the cost of glass is a direct materials cost in light bulb manufacturing. Hope this helps!👍
Is the cost of direct materials classified as a conversion cost?
No, Conversion cost is the sum of direct labor cost and manufacturing overhead cost.
Assuming that direct labor is a variable cost product costs under variable costing include only?
B. Direct materials, direct labor, and variable manufacturing overhead.
Does prime cost plus conversion cost equal the cost of manufacturing?
Total Manufacturing Cost = Direct Material + Direct Labor + Factory Overheads Prime Cost = Direct material + Direct Labor Conversion Cost = Direct Labor + Factory Overhead So yes prime cost and conversion cost is equal to total manufacturing cost
How do you charge indirect wages in manufacturing account?
that is the order of manufacturing account Direct materials + Direct wages + Direct expenses (like loyalty fees) = prime cost Production overheads = indirect wages, depreciation Non Production overheads = like Work in progress
Abbey Company's manufacturing overhead is 60 percent of its total conversion costs If direct labor is 35000 and if direct materials are 55000 the manufacturing overhead is?
Conversion Cost (CC) = Direct Labour (DL) + Manufacturing Overhead (MO) CC = 35000 + (35000/40)*60 Therefor, M0 = (35000/40)*60 = 52500
Indirect materials definition?
INDIRECT MATERIAL Materials, purchases and supplies used in the operation of the business, not directly associated with production and are part of OPERATING EXPENSES. As opposed to DIRECT MATERIAL.DIRECT MATERIALS Raw materials and other purchases that become a part of the units produced and incur expenditures that are easily traced to the units of output and included in the COST OF GOODS SOLD. As opposed to INDIRECT MATERIALS, such as office supplies.
Explain how outsourcing effects the pro-forma income statement?
Doesn't it affect it in the cost of goods sold? Outsourcing should impact direct labor costs and manufacturing costs as well as direct materials costs if in the manufacturing industry depending on what was outsourced.
