Comment on the following statement: “In a normal-costing system, the amounts in the Manufacturing Overhead Control account will always equal the amounts in the Manufacturing Overhead Allocated account.”

Comment on the following statement: “In a normal-costing system, the amounts in the Manufacturing Overhead Control account will always equal the amounts in the Manufacturing Overhead Allocated account.”

Name: Comment on the following statement: “In a normal-costing system, the a
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Description: Comment on the following statement: “In a normal-costing system, the amounts in the Manufacturing Overhead Control account will always equal the amounts in the Manufacturing Overhead Allocated account.”

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 11MC: Which is not a task typically associated with ABC systems? A. calculating the overhead application...

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Please explain the statement below thoroughly with examples. (Ture or False) "In activity-based costing, the manufacturing overhead cost per unit will depend partially on the number of units in a batch."
1.The overhead absorption rate used to allocate manufacturing overhead is calculated by: Select one: a.dividing the total estimated manufacturing overhead costs by the total estimated quantity of the allocation base b.dividing the total estimated manufacturing overhead by the total actual quantity of the cost driver c.dividing the total actual manufacturing overhead costs by the total estimated quantity of the cost driver d.dividing the total estimated quantity of the cost driver by the total estimated manufacturing overhead costs
Using ABC to allocate manufacturing overhead can helpmanagers to:a. Identify what activities drive overhead costs.b. Set product prices.c. Locate inefficiencies in the production process.d. Do all of the above.
Indicate whether the following statement is true or false, then support your view. By using a single cost pool and a single cost driver to allocate overhead, the more traditional methods of overhead assignment fully considers the influence on cost of the different activities that occur to make a product.
Fill in the blank. __________ method is a process costing system which computes equivalent units only on work done in the current period.
Which of the following is a characteristic of a process cost accounting system? A. Material, Labor, and Overheads are accumulated by orders. B. Companies use this system if they process custom orders. C. Only Closing stock of work in process is restated in terms of completed units. D. Opening and Closing stock of work in process are related in terms of completed units.
The overhead absorption rate used to allocate manufacturing overhead is calculated by: a. dividing the total actual manufacturing overhead costs by the total estimated quantity of the cost driver b. dividing the total estimated manufacturing overhead by the total actual quantity of the cost driver c. dividing the total estimated manufacturing overhead costs by the total estimated quantity of the allocation base d. dividing the total estimated quantity of the cost driver by the total estimated manufacturing overhead costs
The use of a plantwide manufacturing overhead rate implies that the activities that cause overhead expenses are the same across all departments and products.True \sFalse
Which of the following best defines standard costing? a. It is the same as actual costing but done in real time. b. It is a system that allocates overhead costs on the basis of standard overhead rates times the actual quantities of the allocation base used. c. It is a system that traces direct costs to output produced by multiplying the standard prices or rates by the standard quantities of inputs allowed for the actual output produced. d. It is a system that traces direct cost to output by multiplying actual prices or rates by actual quantities of inputs and allocates overhead costs on the basis of actual quantities of the allocation base used.
In cost accounting, what is the purpose of job costing?a. To allocate overhead costs to productsb. To assign costs to specific production batches or jobsc. To calculate fixed costs for the entire organizationd. To determine variable costs for each product line
In a process costing system, the cost per equivalent unit must be computed before computing equivalent units. True False
Manufacturing overhead is the costs that can be traced directly to specific units produced. TRUE OR FALSE