A major conceptual difference between throughput costing and variable costing is 1)under variable costing, direct labour...
A major conceptual difference between throughput costing and variable costing is
1)under variable costing, direct labour and variable manufacturing overhead are charged to income as period expenses.
2)under throughput costing, direct labour and variable manufacturing overhead are deferred in inventory rather than charged to income as period expenses.
3)under throughput costing, direct labour and variable manufacturing overhead are charged to income as period expenses.
4) there are no conceptual differences between the two methods.
Homework Answers
Under throughput costing, direct labour and variable manufacturing overhead are charged as an expense in the current period, thus the answer is:
3)under throughput costing, direct labour and variable manufacturing overhead are charged to income as period expenses.
Add Answer to:
A major conceptual difference between throughput costing and
variable costing is
1)under variable costing, direct labour...
Fill in the blank choices for questions 22-26: Administrative Beginning Contribution Cost driver Direct labor Direct...
Fill in the blank choices for questions
22-26:
Administrative
Beginning
Contribution
Cost driver
Direct labor
Direct labor-hours
Direct materials
Dollars of direct labor cost
Ending
Expensed
Fixed
Fixed manufacturing overhead
For the period ended
Income statement
Indirect labor
Indirect materials
Job cost
Level of activity
Machine-hours
Manufacturing
Manufacturing overhead
Margin
Name of company
Overapplied
Period
Predetermined overhead rate
Process cost
Selling
Statement of cost of goods manufactured
Total budgeted overhead
Underapplied
Variable costing
Work inprocess inventory
Show transcribed image text...
Advocates of throughput costing maintain that ________. A) both variable and fixed are necessary to produce...
Advocates of throughput costing maintain that ________. A) both variable and fixed are necessary to produce goods; therefore, both types of costs should be inventoried B) all manufacturing costs plus some design costs should be inventoried C) fixed manufacturing costs are related to the capacity to produce rather than to the actual production of specific units D) except direct labor no other costs are truly variable in output Tall Statues Inc., produces wood statues. Management has provided the following information:...
Which of the following statements is true? Ι ο Under variable costing, direct materials and direct...
Which of the following statements is true? Ι ο Under variable costing, direct materials and direct labor are expensed as period expenses. ο Under variable costing, fixed manufacturing overhead is expensed as period expenses. ο Fixed manufacturing overhead costs are treated the same under both absorption costing and variable costing. ο Reported income under absorption costing is not affected by production level changes. ο Under absorption costing, fixed manufacturing overhead is expensed as period expenses.
Income statements under absorption costing and variable costing Gallatin County Motors Inc. assembles and sells snowmobile...
Income statements under absorption costing and variable costing Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first month. The following data summarize the results for July: Sales (3,500 units) $2,590,000 Production costs (4,000 units): Direct materials $1,272,800 Direct labor 547,200 Variable factory overhead 89,200 Fixed factory overhead 140,000 2,049,200 Selling and administrative expenses: Variable selling and administrative expenses $63,500 Fixed selling and administrative expenses...
1. Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year...
1. Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of operations, 6,700 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials $38.30 Direct labor 13.80 Fixed factory overhead 5.30 Variable factory overhead 4.70 Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept. Absorption costing $ Variable costing...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and sells MP3 players. The...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August: Sales (13,500 units) $1,350,000 Production costs (17,000 units): Direct materials $629,000 Direct labor 302,600 Variable factory overhead 151,300 Fixed factory overhead 100,300 1,183,200 Selling and administrative expenses: Variable selling and administrative expenses $183,400 Fixed selling and administrative expenses 71,000 254,400...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and sells MP3 players. The...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August: Sales (8,000 units) $800,000 Production costs (10,000 units): Direct materials $370,000 Direct labor 178,000 Variable factory overhead 89,000 Fixed factory overhead 59,000 696,000 Selling and administrative expenses: Variable selling and administrative expenses $107,900 Fixed selling and administrative expenses 41,800 149,700...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and sells MP3 players. The...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August: Sales (16,500 units) $2,145,000 Production costs (21,000 units): Direct materials $1,010,100 Direct labor 485,100 Variable factory overhead 241,500 Fixed factory overhead 161,700 1,898,400 Selling and administrative expenses: Variable selling and administrative expenses $294,300 Fixed selling and administrative expenses 113,900 408,200...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and sells MP3 players. The...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August: Sales (15,000 units) $2,250,000 Production costs (19,000 units): Direct materials $1,054,500 Direct labor 505,400 Variable factory overhead 252,700 Fixed factory overhead 169,100 1,981,700 Selling and administrative expenses: Variable selling and administrative expenses $307,200 Fixed selling and administrative expenses 118,900 426,100...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and sells MP3 players. The...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August: Sales (10,500 units) $1,365,000 Production costs (14,000 units): Direct materials $673,400 Direct labor 323,400 Variable factory overhead 161,000 Fixed factory overhead 107,800 1,265,600 Selling and administrative expenses: Variable selling and administrative expenses $196,200 Fixed selling and administrative expenses 75,900 272,100...
Fill in the blank choices for questions
22-26:
Administrative
Beginning
Contribution
Cost driver
Direct labor
Direct labor-hours
Direct materials
Dollars of direct labor cost
Ending
Expensed
Fixed
Fixed manufacturing overhead
For the period ended
Income statement
Indirect labor
Indirect materials
Job cost
Level of activity
Machine-hours
Manufacturing
Manufacturing overhead
Margin
Name of company
Overapplied
Period
Predetermined overhead rate
Process cost
Selling
Statement of cost of goods manufactured
Total budgeted overhead
Underapplied
Variable costing
Work inprocess inventory
Show transcribed image text...
Which of the following statements is true? Ι ο Under variable costing, direct materials and direct labor are expensed as period expenses. ο Under variable costing, fixed manufacturing overhead is expensed as period expenses. ο Fixed manufacturing overhead costs are treated the same under both absorption costing and variable costing. ο Reported income under absorption costing is not affected by production level changes. ο Under absorption costing, fixed manufacturing overhead is expensed as period expenses.
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