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.
what isfactory overhead applied
factory overhead should be allocated on basis of their apportiomen
cheatFAIL
YES
yes factory overhead is part of income statement and shown in cost of goods sold statement as a product cost.
what is factory overhead applied?
what isfactory overhead applied
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 the over-or under applied factory overhead?
factory overhead should be allocated on basis of their apportiomen
Salary of factory manager is Manufacturing overhead. and Manufacturing overhead is Product costs. So, It's not period cost.
cheatFAIL
yes
YES
yes factory overhead is part of income statement and shown in cost of goods sold statement as a product cost.
No, property taxes would not be classified as factory overhead...property taxes get paid under an expense account
Direct labor is not part of factory overhead while indirect labor is part of overhead as these labor expenses could not be calculated directly like factory supervisor salary or line manager salary etc.