QUESTION 4 Indicate whether each of the following costs incurred by a manufacturer would be considered a Product Cost or a Period Cost. If the cost is identified as a Product cost, indicate whether it would be considered Direct Materials, Direct Labor, or Allocated Overhead. A. Product Cost - Direct Materials - v The quality control engineer's salary B. Product Cost - Direct Labor v The cost of depreciation on the factory equipment V The cost of the wood used in the manufacturing C. Product Cost - Allocated Overhead chairs D. Period Cost

QUESTION 4 Indicate whether each of the following costs incurred by a manufacturer would be considered a Product Cost or a Period Cost. If the cost is identified as a Product cost, indicate whether it would be considered Direct Materials, Direct Labor, or Allocated Overhead. A. Product Cost - Direct Materials - v The quality control engineer's salary B. Product Cost - Direct Labor v The cost of depreciation on the factory equipment V The cost of the wood used in the manufacturing C. Product Cost - Allocated Overhead chairs D. Period Cost

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 17MC: Under absorption costing, a unit of product includes which costs? A. direct material, direct labor,...

See similar textbooks

Similar questions

Which of the following is a prime cost? A. indirect materials B. direct labor C. administrative expenses D. factory depreciation expenses
Which is not a step In activity-based costing? A. identify the activities performed by the organization B. identify the cost driver(s) associated with each activity C. compute a cost rate per production D. assign costs to products by multiplying the cost driver rate by the volume of the cost driver units consumed by the product
Which is the correct formula for computing the overhead rate? A. estimated use of the cost driver for production/estimated overhead for the activity B. estimated overhead for the product/estimated use of the cost driver for the activity C. estimated use of the cost driver for production/estimated overhead for the activity D. estimated overhead for the activity/estimated use of the cost driver for the activity
Which is not a step in analyzing the cost driver for manufacturing overhead? A. Identify the cost B. identify non-value-added costs C. analyze the effect on manufacturing overhead D. identify the correlation between the potential driver and manufacturing overhead
Overhead costs are assigned to each product based on __________________. A. the proportion of that products use of the cost driver B. a predetermined overhead rate for a single cost driver C. price of the product D. machine hours per product
Which of the following is a prime cost? A. direct labor B. work in process inventory C. administrative labor D. factory maintenance expenses
Assigning indirect costs to specific jobs is completed by which of the following? applying the costs to manufacturing overhead using the predetermined overhead rate using the manufacturing costs incurred applying the indirect labor to the work in process inventory
Under absorption costing, a unit of product includes which costs? A. direct material, direct labor, and manufacturing overhead B. direct material, direct labor, and variable manufacturing overhead C. direct material, direct labor, and fixed manufacturing overhead D. direct material, direct labor, and all variable manufacturing overhead
Describe the Source 01 the data for increasing Work in Process for (a) direct materials, (b) direct labor, and (c) factory overhead
Under variable costing, a unit of product includes which costs? direct material, direct labor, and manufacturing overhead Direct material, direct labor, and variable manufacturing overhead Direct material, direct labor, and fixed manufacturing overhead D. Direct material, direct labor, and all variable manufacturing overhead
Which 01 the following is not considered a cost of manufacturing a product A. Direct materials cost B. Factory overhead cost C. Sales salaries D. Direct labor cost
During production, to what are the costs in job order costing applied? A. manufacturing overhead B. cost of goods sold C. each individual product D. each individual department