Define fixed overhead costs.

Q: The total absorbtion rate used to allocate manuafcturing overhead is calculated by?

A: The absorption rate is allocated using the different allocation bases Direct labors hours Direct…

Q: What is the predetermined overhead allocation rate?

A:

Q: How does the planning of fixed overhead costs differ from the planning of variable overhead costs?

A: Variable cost: The cost which fluctuates on the basis of the output level produced. The variable…

Q: How is the predetermined overhead allocation rate determined?

A: Predetermined overhead allocation rate: Predetermined overhead refers to the allocation rate that is…

Q: How do managers plan for variable overhead costs?

A: Variable Cost: The cost which fluctuates on the basis of the output level produced. The variable…

Q: Explain fixed manufacturing overhead.

A: Manufacturing overhead costs: The costs, which do not relate openly with the manufacturing of…

Q: Define the terms under-allocated and over-allocated overhead. What factors contribute to each…

A: Expenses associated with manufacturing overhead: "Manufacturing overhead costs, also known as…

Q: What does the following statement mean? “Accounting for overhead involves an important costbenefit…

A: Overheads are typically accounted by accumulating costs and dividing the total costs by the total…

Q: Formula for FIxed Overhead How do you find fixed overhead?  What is the formula?

A: Overheads refers to the total cost of indirect materials, indirect labour and indirect expenses.…

Q: Describe an important cost-benefit issue involving accuracy versus timeliness in accounting for…

A:

Q: Define unavoidable fixed costs.

A: Unavoidable fixed costs are fixed costs which cannot be avoided by discontinuing a product line or…

Q: - standard costing

A: Standard costing system is the method of setting standards for every costs and revenue and comparing…

Q: What is an overhead absorption rate?

A: Overhead:   It refers to an ongoing cost incurred to operate a business. Overheads exclude the…

Q: Explain the benefits of using a predetermined overhead rate instead of an actual overhead rate.

A:

Q: What is the formula to compute the predetermined overhead allocation rate?

A: Predetermined Overhead Rate: Predetermined overhead rate is a measure used to allocate the estimated…

Q: Product costs are also callec Direct costs. Overhead costs

A: Given: 1. Product costs are also called: *Direct costs.Overhead costs.Manufacturing overhead…

Q: What is a predetermined overhead rate, and what is it used for?

A: A overhead  is an indirect  expense  incurred  to operate the  organization

Q: a) Classify each cost element as either fixed, variable, or mixed

A: Cost Accounting: Fixed Cost: The cost which constant for the year and there is no impact of any…

Q: Explain variable overhead costs.

A: Variable Costing: “Variable costing is a method that allocates only variable manufacturing costs to…

Q: Identify the costs included under variable costing.

A: The costs can be distinguished as variable and fixed costs.

Q: What is the standard variable overhead rate and standard fixed overhead rate?

A: The overhead rate is calculated by dividing total indirect costs (also known as overhead) for a…

Q: What are the justifications for using practical capacity as the denominator volume when…

A: Fixed cost volume variance: The fixed cost volume variance is the difference between the budgeted…

Q: Describe planning for variable overhead costs.

A: Variable Cost: The cost which is not fixed is called a variable cost. This cost is directly…

Q: Explain the difference between under-allocated overhead and over-allocated overhead. What causes…

A: Overhead is applied using estimated or budgeted overhead and a base. Actual overhead costs are…

Q: What are the arguments in favor of treating fixed manufacturing overhead costs as period costs?

A: Period costs: Period costs are the costs other than the product costs. These costs are not incurred…

Q: Overheads applied are calculated by:

A: Applied overheads are an indirect cost that is directly related to the manufacturing of products but…

Q: Calculate the actual fixed production overheads f

A: We know that as per  Actual Overhead = Budgeted Overhead  Budgeted Overhead absorption rate per unit…

Q: What does the word "overhead application rate" mean?

A: Overhead is a term that refers to a continuous   The term "overhead application rate" refers to the…

Q: What is meant by the term overhead application rate ?

A: Overhead: It refers to an ongoing or continuing expense that is centrally incurred by a company in…

Q: Explain the major reasons for allocating costs.

A: The entity allocates its cost by using a different measure. The cost that is allocated is common and…

Q: It is important to understand variable and fixed costs, average expenses, and the overall costs.

A: Introduction: We're only responding to the first three subparts, so if you have a question that…

Q: Distinguish between fixed and variable costs while dealing with semi-variable expenses.

A: Fixed and variable costs: The term "variable cost" refers to a cost subject to change based on the…

Q: What are non-unit level overhead activities? Non-unit based cost drivers? Give some examples.

A: Under Activity-based costing, different overhead activities are identified and the cost of all such…

Q: why is adjustment necessary for under and over absorption of overheads in the absorption costing…

A: Here discuss about the details of adjustment which are needed for the over and under absorption of…

Q: How do I calculate the overhead allocations?

A: Cost allocation: Cost allocation is a process of assigning or allocating indirect costs to each and…

Q: s predetermined overhead rate f

A: Estimated total variable manufacturing overhead (A) $802,500 Estimated total fixed manufacturing…

Q: Define Overhead Allocation.

A: Activity-Based Costing: It is a method that helps in finding the activities performed by a company…

Q: How do you calculate the activity rates for overhead activity

A: The activity based costing is used to estimate tonthe total manufacturing cost including overhead…

Q: Distinguish between fixed cost and variable cost.

A: Fixed Costs: These are the costs that remain constant in total dollar amount irrespective to the…

Q: What is a predetermined overhead rate?

A: Overhead Cost: Overhead cost is the expense incurred in the operations of a business. This expense…

Q: Why are fixed-overhead costs sometimes called capacity-producing costs?

A: Overhead costs Overhead cost or overhead expenses refer to the cost which is used to increase the…

Q: Distinguish between traceable and common fixed costs.

A: Fixed costs are referred to as the costs that do not change with a change in the level of the…

Q: Def ine overhead-related activity cost pools and provide several examples.

A: Activity cost pools are used in the managerial accounting method of activity based costing to…

Q: Define under or over applied overhead.

A:

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.