Homework Answers
Answer: False
Explanation: A cost driver is a factor,machine hours,beds occupied,computer time or flight hours,that causes both direct and indirest cost.It is not necessary that cost drivers will affect only direct costs,it may also affect indirect cost as well.
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A cost driver is a factor, such as machine-hours, beds occupied, computer time, or flight-hours, that...
T/F and Explain why Please 1) A cost driver is a factor, such as machine-hours, beds...
T/F and Explain why Please 1) A cost driver is a factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes direct costs. 2) Job-order costing systems often use allocation bases that do not reflect how jobs actually use overhead resources. 3) An employee time ticket is an hour-by-hour summary of the employee's activities throughout the day. 4) The formula for computing the predetermined overhead rate is: Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated...
Direct labor or machine hours may not be the appropriate cost driver for overhead in all...
Direct labor or machine hours may not be the appropriate cost
driver for overhead in all areas of manufacturing due to the
complexities of many manufacturing processes. Many companies use
activity-based costing (ABC) which uses multiple drivers (items
that consume resources) rather than just one driver to apply
overhead to their activities. With ABC, a company can use a cost
driver that has a direct cause/effect relationship in its applied
overhead costs.
Waterways looked into ABC as a method of...
Direct labor or machine hours may not be the appropriate cost driver for overhead in all...
Direct labor or machine hours may not be the appropriate cost driver for overhead in all areas of manufacturing due to the complexities of many manufacturing processes. Many companies use activity-based costing (ABC) which uses multiple drivers (items that consume resources) rather than just one driver to apply overhead to their activities. With ABC, a company can use a cost driver that has a direct cause/effect relationship in its applied overhead costs. Waterways looked into ABC as a method of...
Direct labor or machine hours may not be the appropriate cost driver for overhead in all...
Direct labor or machine hours may not be the appropriate cost driver for overhead in all areas of manufacturing due to the complexities of many manufacturing processes. Many companies use activity-based costing (ABC) which uses multiple drivers (items that consume resources) rather than just one driver to apply overhead to their activities. With ABC, a company can use a cost driver that has a direct cause/effect relationship in its applied overhead costs. Waterways looked into ABC as a method of...
Using a single-driver allocation system, with machine hours as the driver, how much overhead was allocated...
Using a single-driver allocation system, with machine hours as
the driver, how much overhead was allocated to Product X [round
overhead rate(s) to two decimal places]?
X Company has two production departments, A and B. The following is budgeted information for all of its products in 2019, and actual information for one of them, Product X: Department A All Products Product x Overhead $4,500,000 Direct labor hours 50,000 762 Machine hours 120,000 1,070 Units produced 51,000 640 Department B Overhead...
Practice Question 10 A primary driver of overhead costs in continuous manufacturing operations is machine hours....
Practice Question 10 A primary driver of overhead costs in continuous manufacturing operations is machine hours. O direct labor hours. O direct labor costs. e number of units. Click if you would like to Show Work for this question: Open Show Work
If Gant allocates overhead using activity based costing (with CPU minutes the cost driver for computer...
If Gant allocates overhead using activity based costing (with CPU minutes the cost driver for computer 4. support and legal hours used the cost driver for legal support), the overhead rates used to allocate overhead to the services will be: per CPU Minute and Per legal Hour Used support, $300,000; and legal support, $150,000. Information on the two services is: Tax. ans ovemead cos AUDIT $600,000 40,000 200 TAX $900,000 10,000 800 Direct labor costs CPU minutes Legal hours used...
Cost Driver Number of orders Number of production runs Pounds of materials used Cost $ 48,375...
Cost Driver Number of orders Number of production runs Pounds of materials used Cost $ 48,375 170,000 336,000 Driver Activity 225 orders 100 runs 120,000 pounds Activity Processing orders Setting up production Handling materials Machine depreciation and maintenance Performing quality control Packing Total estimated cost Machine-hours Number of inspections Number of units 252,000 51,200 120,000 $977,575 14,000 hours 40 inspections 480,000 units In addition, management estimated 7,300 direct labor-hours for year 2. Assume that the following cost driver volumes occurred...
Assume that machine hours is the cost driver for overhead. The difference between the actual variable...
Assume that machine hours is the cost driver for overhead. The difference between the actual variable overhead incurred and the applied variable overhead is the: Select one: a. spending variance. b. volume variance. c. efficiency variance. d. sum of the spending and efficiency variances. e. production variance.
1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost...
1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. (Click the icon to view the data.) Compute the manufacturing cost per unit for each product. How might Neylon's managers use the new cost information from its activity-based costing system to better manage its business? 2. Total manufacturing overhead costs are: 3. Total Machining costs 360,000 Data Table Setup costs 108,000 Inspection costs 117,000 Mathematical Financial Requirement 1. Choose...
Direct labor or machine hours may not be the appropriate cost
driver for overhead in all areas of manufacturing due to the
complexities of many manufacturing processes. Many companies use
activity-based costing (ABC) which uses multiple drivers (items
that consume resources) rather than just one driver to apply
overhead to their activities. With ABC, a company can use a cost
driver that has a direct cause/effect relationship in its applied
overhead costs.
Waterways looked into ABC as a method of...
Direct labor or machine hours may not be the appropriate cost driver for overhead in all areas of manufacturing due to the complexities of many manufacturing processes. Many companies use activity-based costing (ABC) which uses multiple drivers (items that consume resources) rather than just one driver to apply overhead to their activities. With ABC, a company can use a cost driver that has a direct cause/effect relationship in its applied overhead costs. Waterways looked into ABC as a method of...
Using a single-driver allocation system, with machine hours as
the driver, how much overhead was allocated to Product X [round
overhead rate(s) to two decimal places]?
X Company has two production departments, A and B. The following is budgeted information for all of its products in 2019, and actual information for one of them, Product X: Department A All Products Product x Overhead $4,500,000 Direct labor hours 50,000 762 Machine hours 120,000 1,070 Units produced 51,000 640 Department B Overhead...
Practice Question 10 A primary driver of overhead costs in continuous manufacturing operations is machine hours. O direct labor hours. O direct labor costs. e number of units. Click if you would like to Show Work for this question: Open Show Work
If Gant allocates overhead using activity based costing (with CPU minutes the cost driver for computer 4. support and legal hours used the cost driver for legal support), the overhead rates used to allocate overhead to the services will be: per CPU Minute and Per legal Hour Used support, $300,000; and legal support, $150,000. Information on the two services is: Tax. ans ovemead cos AUDIT $600,000 40,000 200 TAX $900,000 10,000 800 Direct labor costs CPU minutes Legal hours used...
Cost Driver Number of orders Number of production runs Pounds of materials used Cost $ 48,375 170,000 336,000 Driver Activity 225 orders 100 runs 120,000 pounds Activity Processing orders Setting up production Handling materials Machine depreciation and maintenance Performing quality control Packing Total estimated cost Machine-hours Number of inspections Number of units 252,000 51,200 120,000 $977,575 14,000 hours 40 inspections 480,000 units In addition, management estimated 7,300 direct labor-hours for year 2. Assume that the following cost driver volumes occurred...
1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. (Click the icon to view the data.) Compute the manufacturing cost per unit for each product. How might Neylon's managers use the new cost information from its activity-based costing system to better manage its business? 2. Total manufacturing overhead costs are: 3. Total Machining costs 360,000 Data Table Setup costs 108,000 Inspection costs 117,000 Mathematical Financial Requirement 1. Choose...
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