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How much overhead cost would be assigned to Product I90W using the activity-based costing system?
To determine the overhead cost assigned to Product I90W using an activity-based costing (ABC) system, you would first need to identify the relevant activities associated with Product I90W and their respective cost drivers. Then, calculate the overhead rates for each activity by dividing the total cost of each activity by the total units of the cost driver. Finally, multiply the overhead rate by the number of units of each cost driver used by Product I90W to find the total overhead cost assigned to it. Without specific data, the exact cost cannot be calculated.
What else can I help you with?
What costing method considers variable factory overhead a product cost?
variable costing
Does absorption costing treat fixed manufacturing overhead as a period cost?
no its a product cost
Why does over costing and under costing occur with traditional costing system?
Over costing and under costing occurs because overhead cost is applied first using some ratio to find out the cost of product before the process of production done and actual cost found.
What is overhead costing sheet in sap?
Costing sheets in SAP determine how cost estimates calculate overhead costs.
How fixed manufacturing overhead costs are shifted from one period to another under absorption costing?
Fixed manufacturing overhead costs are shifted from one period to another due to changes in inventories under absorption costing. Every unit that is produced is assigned some fixed manufacturing overhead costs. Assuming that the said unit is not sold during that period, the fixed manufacturing cost assigned to that unit will then become part of the inventory and reported on the balance sheet and not the cost of good sold.
What costing method considers variable factory overhead a product cost?
variable costing
Does absorption costing treat fixed manufacturing overhead as a period cost?
no its a product cost
Why does over costing and under costing occur with traditional costing system?
Over costing and under costing occurs because overhead cost is applied first using some ratio to find out the cost of product before the process of production done and actual cost found.
What is overhead costing sheet in sap?
Costing sheets in SAP determine how cost estimates calculate overhead costs.
How fixed manufacturing overhead costs are shifted from one period to another under absorption costing?
Fixed manufacturing overhead costs are shifted from one period to another due to changes in inventories under absorption costing. Every unit that is produced is assigned some fixed manufacturing overhead costs. Assuming that the said unit is not sold during that period, the fixed manufacturing cost assigned to that unit will then become part of the inventory and reported on the balance sheet and not the cost of good sold.
How fixed manufacturing overhead costs shifted from one period to another under absorption costing.?
What arguments are there in favor of treating fixed manufacturing overhead costs as product costs? As period costs?
How does one work out the cost of a product in detail?
One uses absorption costing taking into account direct and indirect materials labour and overhead.
Difference between absorption and marginal costing?
marginal costing is recommended by IAS and absorption costing is not recommended by IAS,marginal costing is used for internal purposes and absorption costing is ysed for external purposes,in marginal costing the fixed production overheads are not calculated as a product cost and in absorption costing the fixed prodution overheads are calculated as product cost.
Why overhead absorption rate is important?
In absorption costing, overhead absorption rate or blanket rate is key to spread all overheads on production of volume of product, because if we don't have the overhead absorption rate manufacturing overhead cannot be spread or there is no basis for allocation of overheads on manufactured units.
Why do you need product costing system?
needs of product costing system
How is cost determined?
Cost is determined by calculating all expenses related to producing a product or providing a service, including materials, labor, and overhead costs. These costs are then used to establish the selling price of the product or service to ensure a profit margin. Various costing methods, such as job order costing or activity-based costing, can be used to determine costs accurately.
What is absorption costing?
The Absorption Cost all manufacturing costs; this includes: - direct materials (those materials that become an integral part of a finished product and can be conveniently traced into it) - direct labor (those factory labor costs that can be easily traced to individual units of product. Also called touch labor) - both variable and fixed manufacturing overhead in the cost of a unit of product. As a result, under absorption costing, fixed overhead is a product cost until sold.
