0
What else can I help you with?
What is purpose of factory overhead applied and how this information can use by the cost accountant in minimum the cost of the product?
Factory overhead is what it costs to run the factory. The cost accountant can look at the cost of overhead to find ways to minimize it, resulting in the cost of the product being lower.
Factory overhead should be allocated on the basis of?
factory overhead should be allocated on basis of their apportiomen
If actual overhead for the year is 33451 and applied overhead is 32000 is the overhead variance over applied or under applied assuming the amount is immaterial how would you dispose of the variance?
Difference between actual overhead and applied overhead is as follows: Difference = 33451 - 32000 = 1450 Difference of variance will be charged to income statement.
What is underapplied factory overhead?
Underapplied factory overhead occurs when the actual overhead costs incurred during a production period exceed the overhead costs that were applied to products based on a predetermined overhead rate. This situation indicates that the manufacturing costs were underestimated, leading to potential financial discrepancies. As a result, businesses may need to adjust their pricing or production strategies to account for the additional costs. Properly managing and analyzing overhead is essential for accurate financial reporting and effective cost control.
Why do you need applied overhead rate?
We need applied overhead rate to know about the overhead variance. Otherwise how will we know how much overhead expenses should have been incurred and how much is actually incurred? Predetermined rate multiplied by the actual unit level activity is applied overhead
What is Applied manufacturing overhead?
what is factory overhead applied?
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.
How do you calculate the amount of over or underapplied overhead?
how do you calculate the amount of the over-or under applied factory overhead?
What is purpose of factory overhead applied and how this information can use by the cost accountant in minimum the cost of the product?
Factory overhead is what it costs to run the factory. The cost accountant can look at the cost of overhead to find ways to minimize it, resulting in the cost of the product being lower.
How do you calculate under and over applied OH?
To calculate under or overapplied overhead, subtract the actual overhead costs from the applied overhead costs. If the actual overhead costs exceed the applied overhead costs, it is overapplied. If the applied overhead costs exceed the actual overhead costs, it is underapplied.
Factory overhead should be allocated on the basis of?
factory overhead should be allocated on basis of their apportiomen
If actual overhead for the year is 33451 and applied overhead is 32000 is the overhead variance over applied or under applied assuming the amount is immaterial how would you dispose of the variance?
Difference between actual overhead and applied overhead is as follows: Difference = 33451 - 32000 = 1450 Difference of variance will be charged to income statement.
Is salary of factory manager a period cost?
Salary of factory manager is Manufacturing overhead. and Manufacturing overhead is Product costs. So, It's not period cost.
Why do you need applied overhead rate?
We need applied overhead rate to know about the overhead variance. Otherwise how will we know how much overhead expenses should have been incurred and how much is actually incurred? Predetermined rate multiplied by the actual unit level activity is applied overhead
The difference between variable factory overhead incurred and total standard variable factory overhead based on the actual quantity of the cost driver for applying the overhead is the?
cheatFAIL
What if budgeted manufacturing overhead is not equal to applied manufacturing overhead?
There is a variance.
Is factory manager's salary part of factory overhead cost?
yes
