0
What else can I help you with?
Is manufacturing overhead same as manufacturing cost?
No. Cost would include the cost of materials. Overhead would not.
The entry to allocate manufacturing overhead costs to work in process requires a debit to work in process inventory?
Assume you have manufacturing overhead 5,000Journal Entry would be:Dr. Work in Process ---------5,000Cr. Manufacturing Overhead ----------5,000
What would property taxes on a company's factory building be classified as?
I believe it would be classified as Manufacturing Overhead.
What is debited when factory payroll for indirect labor is assigned?
When factory payroll for indirect labor is assigned, the "Factory Overhead" account is debited. This reflects the allocation of labor costs that are not directly associated with the production of goods but are necessary for the manufacturing process. Correspondingly, the "Cash" or "Wages Payable" account would be credited to recognize the payment or obligation for those labor costs.
The variable portion of the semi variable cost of electricity for a manufacturing plant is a conversion cost?
yes A cost that attaches to the physical units is termed a product cost. Product costs would include direct materials, direct manufacturing labor, and manufacturing overhead. Conversion cost is the cost involved in converting the direct materials into a finished product. It is composed of direct manufacturing labor and manufacturing overhead. Any cost that does not attach to the physical units would be termed a period cost and would be expensed as incurred. Therefore, a cost is either a period or a product cost. Electricity cost, whether variable or fixed, would be included in manufacturing overhead and classified as conversion costs, and therefore cannot be classified as a period cost.
Would you expect substantially different amounts of overhead costs to be assigned to some jobs if the company used a plantwide overhead rate based in direct labor hours rather than using departmental?
Yes, using a plantwide overhead rate based on direct labor hours could result in significantly different overhead cost allocations compared to a departmental approach. Plantwide rates average costs across the entire facility, which may not accurately reflect the overhead consumption of specific departments with varying processes and resource needs. This could lead to over- or under-costing of jobs in certain departments, affecting pricing and profitability decisions. In contrast, departmental rates provide a more tailored allocation that can better match actual resource usage.
Is manufacturing overhead same as manufacturing cost?
No. Cost would include the cost of materials. Overhead would not.
The entry to allocate manufacturing overhead costs to work in process requires a debit to work in process inventory?
Assume you have manufacturing overhead 5,000Journal Entry would be:Dr. Work in Process ---------5,000Cr. Manufacturing Overhead ----------5,000
Abel companys manufacturing overhead is 20 percent of its total conversion costs If direct labor is 38000 and if direct material are 47000 the manufacturing overhead is?
Manufacturing Overheads = 20% of Conversion CostTotal Conversion Cost = ?Total Conversion Cost = Direct Labor + Manufacturing Overheads100% = 80% + 20%Total Conversion Cost = direct labor * 100/80Direct labor = 38000Total Conversion Cost = 38000 * 100/80Total Conversion Cost = 47500Manufacturing Cost = Total Conversion Cost - Direct LaborManufacturing Cost = 47500 - 38000Manufactruring Cost = 9500
What would property taxes on a company's factory building be classified as?
I believe it would be classified as Manufacturing Overhead.
Would office supplies be included in manufacturing overhead?
No, office supplies are generally not included in manufacturing overhead. Manufacturing overhead typically encompasses indirect costs related to the production process, such as utilities, depreciation on equipment, and salaries of supervisory personnel. Office supplies are usually categorized as administrative expenses, which fall under operating expenses rather than manufacturing costs.
What is debited when factory payroll for indirect labor is assigned?
When factory payroll for indirect labor is assigned, the "Factory Overhead" account is debited. This reflects the allocation of labor costs that are not directly associated with the production of goods but are necessary for the manufacturing process. Correspondingly, the "Cash" or "Wages Payable" account would be credited to recognize the payment or obligation for those labor costs.
The variable portion of the semi variable cost of electricity for a manufacturing plant is a conversion cost?
yes A cost that attaches to the physical units is termed a product cost. Product costs would include direct materials, direct manufacturing labor, and manufacturing overhead. Conversion cost is the cost involved in converting the direct materials into a finished product. It is composed of direct manufacturing labor and manufacturing overhead. Any cost that does not attach to the physical units would be termed a period cost and would be expensed as incurred. Therefore, a cost is either a period or a product cost. Electricity cost, whether variable or fixed, would be included in manufacturing overhead and classified as conversion costs, and therefore cannot be classified as a period cost.
How much overhead cost would be assigned to Product I90W using the activity-based costing system?
To determine the overhead cost assigned to Product I90W using an activity-based costing (ABC) system, you would first need to identify the relevant activities associated with Product I90W and their respective cost drivers. Then, calculate the overhead rates for each activity by dividing the total cost of each activity by the total units of the cost driver. Finally, multiply the overhead rate by the number of units of each cost driver used by Product I90W to find the total overhead cost assigned to it. Without specific data, the exact cost cannot be calculated.
How do you calculate overhead cost?
You add all the costs together that are related to the manufacturing process. An example of something included would be electricity for the manufacturing floor, something excluded would be CEO's auto allowance. You then divide by what your cost driver is...(machine hours, direct labor hours, etc..) that gives you an overhead cost per.
How do you calculate manufacturing overhead costs?
The total budgeted costs in an indirect-cost pool divided by the total budgeted quantity of cost-allocation base. For example: Manufacturing overhead = 900.000 and 25.000 machine hours. --> 900.000/25.000 = 36 dollar per machine hour
Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following a. Product cost b. Manufacturing overhead c. Period cost?
Product cost
