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What else can I help you with?
Costs can either be prime costs or conversion costs but not both?
direct labor
Is Direct Labor included in Overhead costs?
Direct labor are not part of overhead costs and shown separately while indirect labor are part of overhead costs and included in overhead cost because those labor cannot be allocated separately or identifiable separately.
Is direct material and labor a fixed cost?
If direct material and direct labor remains fixed irrespective of production volume then these are fixed costs otherwise these are variable costs and normally these are variable costs because it varies with the production volume.
How prime cost is different from conversion cost and Manufacturing Costs?
Prime cost basically is the cost of direct labor and cost of direct material; whereas conversion costs is Overhead cost and direct labor cost.
What is the formulae for calculating direct labor costs?
Direct labor cost is the salaries and wages of all workers directly involved in manufacturing of goods.
Costs can either be prime costs or conversion costs but not both?
direct labor
Is Direct Labor included in Overhead costs?
Direct labor are not part of overhead costs and shown separately while indirect labor are part of overhead costs and included in overhead cost because those labor cannot be allocated separately or identifiable separately.
Is direct material and labor a fixed cost?
If direct material and direct labor remains fixed irrespective of production volume then these are fixed costs otherwise these are variable costs and normally these are variable costs because it varies with the production volume.
What is the formula to calculate conversion costs?
it is direct labor plus overhead costs
Briefly explain the 3 basic elements of costs?
The three basic elements of costs are direct materials, direct labor, and overhead. Direct materials refer to the supplies used in production, direct labor refers to the cost of labor directly involved in production, and overhead encompasses all other production costs not directly tied to materials or labor.
What are prime cost?
Prime Costs: Prime costs are those costs which are prime importance for making any product and include: Prime Cost = Direct Material + Direct Labor
Is factory manager wages direct labor costs?
Factory manager is not directly related to the production of units of product so it is not direct labor cost but it is included in overhead costs.
How prime cost is different from conversion cost and Manufacturing Costs?
Prime cost basically is the cost of direct labor and cost of direct material; whereas conversion costs is Overhead cost and direct labor cost.
How do you compute predetermined overhead rate as a percentage of direct labor costs and direct labor hours?
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.
What is the formulae for calculating direct labor costs?
Direct labor cost is the salaries and wages of all workers directly involved in manufacturing of goods.
Manufacturing overhead combined with direct labor forms prime costs?
Formula for prime cost = direct material + direct laborFormula for conversion cost = direct labor + manufacturing overheads
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)
