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Is depreciation of factory plant and equipment a factory overhead cost?
YES
Is direct material cost an overhead?
no direct cost is not an overhead
Is a manufacturing plant managers salary a direct labor cost?
Manufacturing plant manager is not directly related to manufacture of unit of product that's why it is not direct labor cost instead of that it is indirect cost and goes to overhead account
What is Overhead cost?
plant overhead cost, also called manufacturing overhead or factory burden, is the total cost involved in operating all production facilities of a manufacturing business. It generally applies to indirect labor and indirect cost, it also includes all costs involved in manufacturing with the exception of the cost of raw materials and direct labor. Factory overhead also includes certain costs such as quality assurance costs, cleanup costs, and property insurance premiums
Is manufacturing overhead same as manufacturing cost?
No. Cost would include the cost of materials. Overhead would not.
Is depreciation of factory plant and equipment a factory overhead cost?
YES
Is total cost different from overhead cost?
Overhead cost is part of total cost and not different from total cost as formula is as follows: Total cost = material cost + labor cost + overhead cost
Is direct material cost an overhead?
no direct cost is not an overhead
Is a manufacturing plant managers salary a direct labor cost?
Manufacturing plant manager is not directly related to manufacture of unit of product that's why it is not direct labor cost instead of that it is indirect cost and goes to overhead account
Is commission manufacturing overhead cost?
No -- commission is Sales overhead cost.
What is Overhead cost?
plant overhead cost, also called manufacturing overhead or factory burden, is the total cost involved in operating all production facilities of a manufacturing business. It generally applies to indirect labor and indirect cost, it also includes all costs involved in manufacturing with the exception of the cost of raw materials and direct labor. Factory overhead also includes certain costs such as quality assurance costs, cleanup costs, and property insurance premiums
Is manufacturing overhead same as manufacturing cost?
No. Cost would include the cost of materials. Overhead would not.
How do you calculate Overhead absorption rate apportionment?
Overhead rate : Overhead rate = total overhead cost / direct labor OR Overhead rate = Total overhead cost / machine hours.
What is overhead cost in small business?
"Overhead" is the cost of things like rent and supplies.
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 are total costs in accounting?
Total cost/ full cost which include Prime Cost *Direct Labour cost *Direct Material Cost *Direct expenses Production Overhead *Variable Overhead *Fixed Overhead Selling and Distribution cost Administration Cost
Explain the difference between the overhead apportionment and overhead absorption?
If the cost can be tracked towards a cost object, then it is called overhead absorption. If the cost can not be tracked with respect to a specific cost center or cost object, then the entire cost is distributed to all the cost centers, based on the usage ratio. This is called Overhead apportionment. UdhayAnand AVB
