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Is indirect labor part of prime cost?
Only direct material and direct labor is part of prime cost while overheads are part of conversion cost so indirect labor is part of overheads so automatically part of conversion cost and not prime cost.
What two cost elements are required to calculate an indirect cost rate?
Indirect cost rate is equal to Indirect Cost Pool divided by Indirect Cost Allocation Base.
Is indirect labor a part of prime cost?
Direct material and direct labor are the parts of prime cost while indirect labor is part of manufacturing overhead and manufacturing overhead is a part of conversion cost that's why indirect labor is not part of prime cost because it is that type of labor which is not directly identifiable with units production that;s why cannot charge directly to production units.
What two costs elements are required to calculate an indirect cost rate?
Indirect cost rate is equal to Indirect Cost Pool divided by Indirect Cost Allocation Base.
Is indirect labor a variable cost?
If indirect labor change with the change of units of product then indirect labor is a variable cost. If change in the quantity of units has no impact on indirect labor cost then it is a fixed cost.
What is conversion cost in cost sheet?
conversion cost = direct wages + factory overheads (indirect material + indirect wages)
Prime cost and conversion cost?
Prime cost = direct materials + direct laborwhile conversion cost = direct labor + factory overhead( which includes indirect materials, indirect labor and other indirect costs
Is indirect labor part of prime cost?
Only direct material and direct labor is part of prime cost while overheads are part of conversion cost so indirect labor is part of overheads so automatically part of conversion cost and not prime cost.
What two cost elements are required to calculate an indirect cost rate?
Indirect cost rate is equal to Indirect Cost Pool divided by Indirect Cost Allocation Base.
Is indirect labor a part of prime cost?
Direct material and direct labor are the parts of prime cost while indirect labor is part of manufacturing overhead and manufacturing overhead is a part of conversion cost that's why indirect labor is not part of prime cost because it is that type of labor which is not directly identifiable with units production that;s why cannot charge directly to production units.
What two costs elements are required to calculate an indirect cost rate?
Indirect cost rate is equal to Indirect Cost Pool divided by Indirect Cost Allocation Base.
Is indirect labor a variable cost?
If indirect labor change with the change of units of product then indirect labor is a variable cost. If change in the quantity of units has no impact on indirect labor cost then it is a fixed cost.
Is research development cost direct or indirect cost?
Research and development cost is indirect cost as this cost is not directly required to manufacturing the production units and that’s why always an indirect cost.
Is advertising expense direct or indirect cost?
indirect
Are indirect materials variable or fixed cost?
Indirect
Is indirect cost a prime cost?
No
Can cost function measure direct cost as well as indirect cost?
yes cost function measures the direct costs along with indirect cost.
