Q5. Explain the treatment of over and under absorption of overheads in cost accounts.

Q: 1. What is the pre-determined overhead rate? A. P 5.69 P 4.86 P 5.45 P 4.27 В. С. D.

A: Overhead refers to the operating expense of the business. Overheads are very important to for the…

Q: In tabular form, provide 3 similarities between activity based costing method and traditional method…

A: Activity based costing and traditional costing are two important methods used to allocate the…

Q: Q1       discuss in detail Cost Accounting, Objectives of Cost Accounting, Essentials of a good…

A: Cost accounting is branch of management accounting in which all costs related with the products like…

Q: This is a cost accounting question.   What are the general ledger accounts required for the…

A: General ledger is prepared to post the transactions of journal entries. It includes posting in debit…

Q: If actual overhead is greater than applied manufacturing overhead, then manufacturing overhead is:…

A: Manufacturing overhead costs that have been allocated to units of a product over a given time are…

Q: A debit balance in Overhead Control: a. indicates applied overhead exceeds actual overhead. b.…

A: OVERHEAD ARE ALL COSTS ON THE INCOME STATEMENT EXCEPT THE DIRECT MATERIALS , DIRECT LABOR AND DIRECT…

Q: If Manufacturing Overhead has a debit balance at the end of the period, then a. overhead has been…

A: The answer is Option (c) [overhead has been underapplied] Refer step 2 for explanation

Q: 38) A predetermined overhead rate is calculated by dividing actual overhead cost by the actual…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Which of the following does NOT form a part of Total cost? A. Production overheads B. Factory…

A: Total cost involves all the cost incurred in order to reach a particular level of output.

Q: Which of the following journal entries is used to record fixed overhead costs allocated? O A. Fixed…

A: Fixed overhead cost: Cost needed to operate a business is called overhead cost. Fixed overhead cost…

Q: Explain the treatment of over and under absorption of overheads in cost accounts?

A: Overheads: These are defined as the expenses incurred in relation to an ongoing business. These are…

Q: 3. In a job-order costing system, a debit balance of the manufacturing overhead account represents:…

A: The correct answer is Option (B).

Q: In the Excel, or spreadsheet, approach to recording financial transactions, if manufacturing…

A: Manufacturing overhead means all indirect costs related to production or manufacturing of products.…

Q: 2. Compute the total overhead cost applied to Job 205.

A:

Q: Q1) Below are the examples of cost objects, except: a. product b. services c. department d.…

A: Cost object means something that the company should measure separately as a object which is…

Q: If actual overhead is greater than applied overhead, which of the following will be true? Upon…

A: If actual overhead is greater than applied overhead then the difference is called overapplied…

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

A:

Q: -: The operation expenses are -5 a- overhead expenses selling and Administrative expenses. O c-…

A: Operating expenses are expenses a business incurs in order to keep it running, such as staff wages…

Q: Cost assignment and cost accumulation

A: Cost assignment is a process used in cost accounting system to allocate costs among products,…

Q: (a) How much is the order quantity based on EOQ model? (b) How much is the total cost using EOQ…

A: EOQ is the acronym of economic order quantity; it is that level of quantity which is ordered by the…

Q: For the purpose of calculating overapplication or overapplication of overheads, the applied…

A: In cost accounting, budgeting plays a key role in the control of the cost of the goods in the…

Q: 4. Manufacturing costs flow from work-in-Process Inventory to Cost of Goods Sold to Finished Goods…

A: SOLUTION- The manufacturing cost flow begins when costs are incurred for direct materials, direct…

Q: Overhead expenses can be classified according to O a. Functions O b. Elements Oc. All of the above O…

A: Overhead expenses are all indirect costs of manufacturing the product or selling the product. These…

Q: Overhead assigned to KJ22 product?

A: Formula: Overhead assigned to Batches = Setting up batches x Number of batches

Q: (c) Calculate the total manufacturing overhead cost for the period. $  __________________ (d)…

A: Total manufacturing costs in the business means cost of materials, labour and manufacturing overhead…

Q: How do accounting books handle overhead overabsorption and underabsorption?

A: Overheads are the basic cost component of any product or service. It basically comprises of the…

Q: If actual overhead is greater than applied manufacturing overhead, then manufacturing overhead is:…

A: Overhead costs are the costs which are indirectly involved in the production process. These costs…

Q: 3. What accounts are debited / credited for overhead cost incurred vs overhead cost applied?

A: a journal entry is the first step in recording the transaction.

Q: Overhead costs are overapplied if the amount applied to Work in Process is: O a. less than estimated…

A: SOLUTION 1- Overhead is over applied when more overhead is applied to the jobs than was actually…

Q: QUESTION 34 Which of the following statements is true? O Indirect costs are allocated to cost…

A: Cost can be allocated on basis of two categories such as direct cost and indirect cost. Direct can…

Q: 10 - In cases where actual costs are applied, all of the expenses collected in the expense accounts;…

A: The correct option is  C) Inflation Adjustment Accounts

Q: 12. Throughout the accounting period, the credit side of the Manufaduring Overhead account is used…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: What adjustment is made for underapplied overhead on the schedule of cost of goods sold? What…

A: Overhead cost: The costs other than the direct costs such as insurance, interest, repairs, taxes…

Q: ccount is credted to adust tor underalocated overhead conts. The Under process costing the pepet…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: O. How much overhead should be applied to Job No.102?

A: Estimated Annual overhead costs for jobs = $3,000,000 The company used 60 hours of processing on…

Q: If the actual overhead costs incurred are in excess of the applied overhead costs, the difference is…

A: Gross margin is calculated by deducting the expenses from the revenues of the company. It is…

Q: LO 6.2ldentify appropriate cost drivers for these cost pools: A. setup cost pools B. assembly cost…

A: Cost Drivers: The direct cause of a cost is referred to as a cost driver. Fixed costs do not change,…

Q: "Vhat is the adjusted balance of work in process inventory after disposing the under- er…

A: Applied overhead : applied Overhead is a cost assigned to production using the estimated overhead…

Q: How do you explain the phrase," Fixed overheads consist of costs which are not subject to change…

A: The costs incurred on the production are distinguished as fixed and variable cost.

Q: 4. Which of the following are period costs? a. Raw materials b. Direct materials and direct labor c.…

A: A period cost is charged to expense to the period in which it is incurred.

Q: Required: How much total overhead cost would be assigned to K425 and M67

A: Activity-based costing: Activity-based costing is the method of costing which is used to assign…

Q: How do accounting books handle over and under absorption of overheads?

A: Under absorption takes place when the amount is absorbed lower than the actual whereas,…

Q: When overhead is overapplied, is the balance of Cost of Goods Sold, before adjustment, too low ortoo…

A: The cost of goods that have been sold in a particular period are known as the cost of goods sold…

Q: Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare…

A: When the overheads are underapplied, it means that COGS is understand hence we  need to adjust by…

Q: Explain the journal entry for the allocation of overhead. What accounts are affected? Are they…

A: Overheads are indirect costs incurred during production of a unit or providing services. These costs…

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.