Question

which of the following costs would not be classified as factory o

Name 1) In a process costing system, factory overhead costs are allocated to production departments by using a predetermined overhead allocation rate. A) True B) False Inventory account of a manufacturing company that uses an overhead rate Uusu on direct labor cost has 400 dahit balance after all posting is completed.c om of the one job still in process shows direct material cost of n process shows direct material cost of $2,000 and direct labor cost of $800. Therefore, the company's overhead application rate is: A) 200% of direct labor cost. B) 300% of direct labor cost. C) 50% of direct labor cost. D) 80% of direct labor cost. E) 40% of direct labor cost. 3) Conversion cost per equivalent unit is the combined cost of direct labor and factory overhead per equivalent unit A) True B) False The ending inventory of finished goods has a total cost of $9,000 and consists of 600 unite Teen de is $3.000, and the overhead rate is 75% of direct labor, how much

Answer 1

1)	Answer:	FALSE
	Reason:	Factory OH are allocated to production departments by using a predetermined OH allocation rate in JOB ORDER COSTING

2)	Overhead applied =		Total Debit Balance - Direct Material Cost - Direct Labor Cost
		=	$ 4400 - $ 2000 - $ 800
		=	$ 1,600.00
	Basis of application of OH =			Direct Labor Cost
	Direct Labor cost		=	$    800.00
	OH applied		=	$ 1,600.00
	Rate		=	OH applied / Direct Labor Cost
			=	$ 1600 / $ 800
			=	200%
	Answer:	A

3)	Answer:	TRUE
	Conversion cost =		Direct Labor + OH