To identify costs that relate to a specific product, an allocation base should be chosen that:...
To identify costs that relate to a specific product, an allocation base should be chosen that:
A. Does not have a cause-and-effect relationship.
B. Considers direct materials and direct labor but not factory overhead.
C. Considers variable costs but not fixed costs.
D. Has a cause-and-effect relationship.
Homework Answers
| To identify costs that relate to a specific product, an allocation base should be chosen that Has a cause-and-effect relationship. |
| The costs related to the product should vary proportionally to the allocation base.The allocation base should be an appropriate driver of cost of product. |
| Option D is correct |
Add Answer to:
To identify costs that relate to a specific product, an
allocation base should be chosen that:...
Eastern Polymers, Inc., processes a base chemical into plastic. Standard costs and actual costs for direct...
Eastern Polymers, Inc., processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 5,200 units of product were as follows: Standard Costs Actual Costs Direct materials 6,800 lbs. at $4.8 6,700 lbs. at $4.7 Direct labor 1,300 hrs. at $16.1 1,330 hrs. at $16.4 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 1,360 direct labor hrs.: Variable cost, $4.8 $6,180...
Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials,...
Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 4,400 units of product were as follows: Standard Costs Actual Costs Direct materials 5,700 lb. at $5.50 5,600 lb. at $5.40 Direct labor 1,100 hrs. at $16.60 1,130 hrs. at $16.90 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 1,150 direct labor hrs.: Variable cost, $3.60 $3,920 variable...
Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials,...
Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 78,000 units of product were as follows: Standard Costs Actual Costs Direct materials 226,200 lbs. at $5.40 223,900 lbs. at $5.20 Direct labor 19,500 hrs. at $18.30 19,950 hrs. at $18.50 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 20,350 direct labor hrs.: Variable cost, $2.90 $55,980 variable...
Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials,...
Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 7,200 units of product were as follows: Standard Costs Actual Costs 9,300 lb. at $5.60 1,840 hrs. at $18.10 Direct materials 9,400 lb. at $5.80 Direct labor 1,800 hrs. at $17.80 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 1,880 direct labor hrs.: Variable cost, $4.80 Fixed cost,...
When calculating an allocation rate for estimated fixed production overhead cost, accountants, working with other managers,...
When calculating an allocation rate for estimated fixed production overhead cost, accountants, working with other managers, choose the A. Allocation base to use as the denominator B. Allocation base to use as the numerator C. Allocation base that minimizes total fixed production overhead D. Allocation base to use as the rate QUESTION 8 Some companies use throughput costing for internal purposes because A. They believe only direct materials costs are truly variable in the short run B. They believe direct...
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Eastern Polymers, Inc., processes a base chemical into plastic. Standard costs and actual costs for direct materials, dire...
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Eastern Polymers, Inc., processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 4,800 units of product were as follows: Standard Costs Actual Costs Direct materials 6,200 lbs. at $4.6 6,100 lbs. at $4.5 Direct labor 1,200 hrs. at $18 1,230 hrs. at $18.3 Factory overhead Rates per direct labor hr., based on 100% of normal...
2. The formula for pre-determined overhead rate is: a. Estimated allocation base divided by estimated overhead...
2. The formula for pre-determined overhead rate is: a. Estimated allocation base divided by estimated overhead b. Estimated allocation base minus estimated overhead c. Estimated overhead minus estimated allocate base d. None of the above 3. If Product T requires highly skilled employees to make it and Product Pis labor intensive and if machine hours is 20% of the non-overhead cost, then a. The allocation base for Product P should be direct labor cost and the allocation base for Product...
Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead...
Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor hours to assign manufacturing overhead to products, but it is trying to decide whether it should use a different allocation base such as direct labor dollars or machine hours. Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here Estimated...
1-1 What are the three major types of product costs in a manufacturing company? 1-2 Define...
1-1 What are the three major types of product costs in a manufacturing company? 1-2 Define the following: (a) direct materials, (b) indirect materials, (c) direct labor, (d) indirect labor, and (e) manufacturing overhead. Explain the difference between a product cost and a period 1-3 cost. 1-4 Distinguish between (a) a variable cost, (b) a fixed cost, and (c) a mixed cost. 1-5 What effect does an increase in the activity level have on- a. Unit fixed costs ? b....
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical...
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 70,000 units of product were as follow Actual Costs Direct materials Direct labor Factory overhead Standard Costs 224,000 lbs. at $4.90 17,500 hrs. at $16.20 Rates per direct labor hr.. based on 100% of normal 221,800 lbs. at $4.70 17,900 hrs. at $16.60 capacity...
Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 7,200 units of product were as follows: Standard Costs Actual Costs 9,300 lb. at $5.60 1,840 hrs. at $18.10 Direct materials 9,400 lb. at $5.80 Direct labor 1,800 hrs. at $17.80 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 1,880 direct labor hrs.: Variable cost, $4.80 Fixed cost,...
When calculating an allocation rate for estimated fixed production overhead cost, accountants, working with other managers, choose the A. Allocation base to use as the denominator B. Allocation base to use as the numerator C. Allocation base that minimizes total fixed production overhead D. Allocation base to use as the rate QUESTION 8 Some companies use throughput costing for internal purposes because A. They believe only direct materials costs are truly variable in the short run B. They believe direct...
2. The formula for pre-determined overhead rate is: a. Estimated allocation base divided by estimated overhead b. Estimated allocation base minus estimated overhead c. Estimated overhead minus estimated allocate base d. None of the above 3. If Product T requires highly skilled employees to make it and Product Pis labor intensive and if machine hours is 20% of the non-overhead cost, then a. The allocation base for Product P should be direct labor cost and the allocation base for Product...
Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor hours to assign manufacturing overhead to products, but it is trying to decide whether it should use a different allocation base such as direct labor dollars or machine hours. Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here Estimated...
1-1 What are the three major types of product costs in a manufacturing company? 1-2 Define the following: (a) direct materials, (b) indirect materials, (c) direct labor, (d) indirect labor, and (e) manufacturing overhead. Explain the difference between a product cost and a period 1-3 cost. 1-4 Distinguish between (a) a variable cost, (b) a fixed cost, and (c) a mixed cost. 1-5 What effect does an increase in the activity level have on- a. Unit fixed costs ? b....
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 70,000 units of product were as follow Actual Costs Direct materials Direct labor Factory overhead Standard Costs 224,000 lbs. at $4.90 17,500 hrs. at $16.20 Rates per direct labor hr.. based on 100% of normal 221,800 lbs. at $4.70 17,900 hrs. at $16.60 capacity...
Most questions answered within 3 hours.
-
Assume that the population of Mexico is 128
million and that the population increases 1.01
percentannually....
asked 52 minutes ago -
Can someone please help me add appropriate descriptive
comments to each line of code in the...
asked 59 minutes ago -
Romeo wishes to throw a bouquet of flowers to Juliet, who is on
a second-story balcony,...
asked 1 hour ago -
Why is QE a controversial monetary policy tool.
A. It may lead to excessive inflation.B. By...
asked 2 hours ago -
Principles of Programming midterm study guide help!
1.)
______ Which of the following would reference the...
asked 1 hour ago -
A finite potential well has depth U0 = 2.78 eV . What is the
penetration distance...
asked 2 hours ago -
1. The bus bars of a power station are in two sections A and B
separated...
asked 2 hours ago -
Fiscal policy is the deliberate manipulation of taxes and
government spending to alter GDP, employment, inflation...
asked 3 hours ago -
evaluating an expression using only one digit and + and - as
operators ....3+5-1+7-5+8
-----------------------
stack...
asked 3 hours ago -
Two concentric current loops lie in the same plane. The smaller
loop has a radius of...
asked 4 hours ago -
1)Which of the following is an
important difference between qualified and nonqualified retirement
plans?
a. Qualified...
asked 4 hours ago -
What's the streaming business's problem on the
horizon?
asked 5 hours ago