Question

please show your solution so i can understand and study it. thank you so much, appreciate it!

LIITTO Hele Seved Sun 570000 of wages and sales and by employees or mount $20.000 corse vec bour 510.000 consists of indirect labour, and $10.000 consists of administrative salaries What Motos and Odd 40.000 O 0000

Answer 1

So sorry but as per guideline i can answer only 1 Questions

Option 1 , Work in Process $20000, Manufacturing overhead Indirect labour $10000, Administrative and salary $ 40000

Under cost Accounting , Direct labour are the direct cost which are charge to Work in process , whereas all the indirect expenses related to product cost are charge to Manufacturing overhead . Selling and Adminstrative expenses are not product cost as they are after production expenses and they are not charge to cost of goods sold , they directly shows under income statement as other expenses hence will be charge to selling and admistrative expenses

Option 4 Predetermined Overhead

Under costing, Manufacturing overhead Rate are predetermined at the start of the production as this are the expenses which are incurred during the year which are not predictable till the end . and based on some estimates predetermined overhead are estmiated based on estimated machine hour , labour hours , labour cost etc . When actual Overhead incurred , any underapplied or overapplied overhead are adjusted from the cost of goods sold, finished goods , or WIP wherever this predermined overhead has been applied.

Predetermined overhead are calculated under following formula

Predetermined overhead rate = Total Estimated Manufacturing overhead ÷ total Estimated Acitivity base ( laobur hours , machine hours etc)

And this predetermined overhead is then applied to production based on actual acitivity level ie actual labour hours ,machine hours