When allocating indirect production costs to cost objects, most cost-allocation bases are ________. a. cost drivers...
-
When allocating indirect production costs to cost objects, most cost-allocation bases are ________.
a. cost drivers
b. assigned to a cost object
c. traced to the cost object
d. accumulated for a cost object
Homework Answers
Solution: assigned to a cost object
Explanation: Costs assigned to cost projects are usually divided as direct cost and indirect cost. Indirect costs are often common to many cost objects. Indirect production costs are assigned to cost objects with the usage of the bases of cost allocations
Add Answer to:
When allocating indirect production costs to cost objects, most
cost-allocation bases are ________.
a. cost drivers...
The cost allocation base O A. are costs related to a particular cost object that cannot...
The cost allocation base O A. are costs related to a particular cost object that cannot be traced to that cost object in an economically feasible way B. is anything for which a measurement of costs is desired O C. is a systematic way to link an indirect cost or group of indirect costs to cost objects D. is a grouping of individual indirect cost items
Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Activities...
Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Activities Indirect Activity Costs Account inquiry (hours) $86,400 Account billing (lines) $53,000 Account verification (accounts) $36,250 Correspondence (letters) $76,000 Potter & Weasley uses activity based costing. Allocation Base 2400 32,000 25,500 11,000 The above activities are used by Departments P and Q as follows: Department PL Department Account inquiry (hours) 500 600 Account billing (lines) 10,000 4,000 Account verification (accounts) 6,000 7,000 Correspondence (letters) 1,000...
Indirect costs occur when a. controllable costs are incurred by cost objectives. b. labor costs are...
Indirect costs occur when a. controllable costs are incurred by cost objectives. b. labor costs are charged to work in process. c. resources are shared by more than one product or service. d. costs are directly traced to products or services.
1. A ___________ is anything for which a measurement of costs is desired. A. Cost Allocation...
1. A ___________ is anything for which a measurement of costs is desired. A. Cost Allocation Base B. Cost Pool C. Cost Object D. Cost Application Base 4. ___________ is the process of assigning indirect costs to products. A. Cost Allocation B. Job Costing Recording C. Cost Pooling D. Cost Tracing
4.an increase in direct labor costs per unit a. Increases the fixed costs b. increases profits...
4.an increase in direct labor costs per unit a. Increases the fixed costs b. increases profits C. Increases variable costs d. Increases overhead costs 5.which of the following is true of the work in process control account? a. It tracks all direct material purchases b. Its balance is the sum of amounts from all "in process individual job costs records C. It is an expense account d. It tracks overhead costs in process from beginning through completion 6. The cost...
8A & C Chapter 5 Study Guide - Support Department and Joint Cost Allocation costs by...
8A & C
Chapter 5 Study Guide - Support Department and Joint Cost Allocation costs by the 7 5. allocate support department San What is the correct sequence of events for allocating support department costs to products regardless of the method (single plantwide rate, multiple production department rates, or activity-based costing) chosen for the allocation process? 1. directie Trace and distribute overhead COSS to Support & production departments. 2. Select a cost driver for each department 3.determine the usage of...
Define cost smoothing, and describe the consequences it can have on costs. What is cost smoothing?...
Define cost smoothing, and describe the consequences it can have on costs. What is cost smoothing? A. Cost smoothing describes a costing approach that allocates indirect costs to cost objects based on the budgeted average indirect cost rates multiplied by the budgeted quantities of the cost allocation bases. B. Cost smoothing describes the method of calculating the average fixed manufacturing overhead cost of each unit produced or service performed. C. Cost smoothing describes a costing system that uses direct costs...
QUESTION 48 The following conditions with departmental indirect-cost rates will result in allocation of costs similar...
QUESTION 48 The following conditions with departmental indirect-cost rates will result in allocation of costs similar to ABC costing except: Significant costs are incurred on different activities within a department significant costs are incurred for different activities with different cost -allocation bases within a department a single activity accounts for a sizable portion of the costs of the department several activities cause a sizable portion of the costs of the department
Direct and Indirect Costs
ubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Average Cost per UnitDirect materials$7.00Direct labor$4.00Variable manufacturing overhead$1.50Fixed manufacturing overhead$5.00Fixed selling expense$3.50Fixed administrative expense$2.50Sales commissions$1.00Variable administrative expense$0.50 Required:1. Assume the cost object is units of production:a. What is the total direct manufacturing cost incurred to make 20,000 units?b. What is the total indirect manufacturing cost incurred to make 20,000 units? 2. Assume the cost object is the...
Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Activities...
Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Potter & Weasley uses activity based costing. Indirect Activity Costs $85,500 $57,000 $35,250 $73,000 Allocation Base 3700 31,000 28,500 11,000 The above activities are used by Departments P and Q as follows: Department Q Department P 800 Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) 400 10,000 6,000 1.000 4,000...
The cost allocation base O A. are costs related to a particular cost object that cannot be traced to that cost object in an economically feasible way B. is anything for which a measurement of costs is desired O C. is a systematic way to link an indirect cost or group of indirect costs to cost objects D. is a grouping of individual indirect cost items
Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Activities Indirect Activity Costs Account inquiry (hours) $86,400 Account billing (lines) $53,000 Account verification (accounts) $36,250 Correspondence (letters) $76,000 Potter & Weasley uses activity based costing. Allocation Base 2400 32,000 25,500 11,000 The above activities are used by Departments P and Q as follows: Department PL Department Account inquiry (hours) 500 600 Account billing (lines) 10,000 4,000 Account verification (accounts) 6,000 7,000 Correspondence (letters) 1,000...
4.an increase in direct labor costs per unit a. Increases the fixed costs b. increases profits C. Increases variable costs d. Increases overhead costs 5.which of the following is true of the work in process control account? a. It tracks all direct material purchases b. Its balance is the sum of amounts from all "in process individual job costs records C. It is an expense account d. It tracks overhead costs in process from beginning through completion 6. The cost...
8A & C
Chapter 5 Study Guide - Support Department and Joint Cost Allocation costs by the 7 5. allocate support department San What is the correct sequence of events for allocating support department costs to products regardless of the method (single plantwide rate, multiple production department rates, or activity-based costing) chosen for the allocation process? 1. directie Trace and distribute overhead COSS to Support & production departments. 2. Select a cost driver for each department 3.determine the usage of...
Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Potter & Weasley uses activity based costing. Indirect Activity Costs $85,500 $57,000 $35,250 $73,000 Allocation Base 3700 31,000 28,500 11,000 The above activities are used by Departments P and Q as follows: Department Q Department P 800 Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) 400 10,000 6,000 1.000 4,000...
Most questions answered within 3 hours.
-
The population standard deviation for the height of college
basketball players is 3.4 inches. If we...
asked 18 seconds ago -
6.) Use valence bond theory to describe the number and types of
hybrid bonding orbitals on...
asked 2 minutes ago -
2. Define/explain the following traits that are important
adaptations for different types of vertebrate animals:
Jaws...
asked 3 minutes ago -
Firm K produced 45,000 radios using 9,000 hours of labor in
2003; total labor costs were...
asked 3 minutes ago -
Use the information in the table to answer the
question.
Year
2015
2016
2017
2018
Nominal...
asked 8 minutes ago -
Kelso Corporation just paid a dividend of D_0 = $1.50 per
share, and that dividend is...
asked 9 minutes ago -
Your ANOVA was statistically significant (Reject the
H0). The groups had a means of:
Group A:...
asked 16 minutes ago -
In cases of negative frequency-dependent selection, _______
phenotype typically has _______ fitness
A
the least common...
asked 18 minutes ago -
Class: Criminal Law
Question: Explain the difference between
aggravating and mitigating factors.
asked 23 minutes ago -
#I want you please to explain why the answer for Q10 is ( C )
?...
asked 23 minutes ago -
An island economy consumes only jellybeans, running shoes,
Pepsi, and Vanilla ice compact discs. The base...
asked 27 minutes ago -
On September 1, Ziegler Corporation had 50,000 shares of $5 par
value common stock, and $1,500,000...
asked 28 minutes ago