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
Q: For each of the following costs, check the type that most likely apply (both variable and fixed…
A: VARIABLE COST: A variable cost is an expense that rises or falls in direct proportion to production…
Q: Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have…
A: Overhead cost is to be assigned on basis of processing machinery hours and on basis of batches
Q: BTS Company has two main departments in the plant site namely Producing department (main) and the…
A: First Suga's overhead cost will be allocated as it is greater than that of Jin's. Suga to…
Q: Activity-based costing uses departments overhead rate to assign overhead .a O provides the same…
A: Activity based costing system is a costing system which says that all indirect costs or overheads…
Q: Required: What is the company's assembly department overhead rate using direct labor hours? The…
A: Assembly department overhead rate based on direct labour hours = Estimated manufacturing overhead of…
Q: Overhead allocation based solely on a measure of volume such as direct labor-hours: A. is a key…
A: The allocation of overhead is the process of applying the indirect cost of manufacturing to the…
Q: Compute the cost of goods manufactured.
A: Managerial accounting is the branch of accounting used to generate reports for the purpose of…
Q: (a) Calculate the following planned overhead absorption rates: (i) A machine hour rate for the…
A: Cost allocation is the process of providing assistance to the costs of a shared service organization…
Q: The company uses normal costing and applies overhead on the basis of direct labor costs. The total…
A: Cost accounting means where every cost of doing business is recorded in necessary account and cost…
Q: a. Determine the per-unit factory overhead allocated to the commercial and residential motors under…
A: a)Determination of the per-unit factory overhead allocated to the commercial and residential motors…
Q: Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs. The single…
A: Cost accounting system: Cost accounting system of an organization consists of procedures and…
Q: The management of a company would like to investigate the possibility of basing its predetermined…
A: Predetermined overhead rate=Manufacturing overheadMachine hours at capacity=$1,855,00053,000=$35
Q: 1. What is the company's single plantwide overhead rate based on direct labor hours? 2. What is the…
A: Plantwide overhead rate based on direct labour hours = Assembly department manufacturing overheads /…
Q: Angel Corporation uses activity-based costing to determine product costs for external financial…
A: In order to calculate the total overhead cost allocated to product X, First of all we need to…
Q: Groleau Corporation has an activity-based costing system with three activity cost pools--Processing,…
A: Costs given are on basis of cost type. We need to assign these costs to the cost pools. After…
Q: Which of the following is not a factory overhead allocation method? a.activity-based costing…
A: Introduction: Various cost allocation methods are used to allocate factory operating costs to units…
Q: Activity-based costing: O a. None of the given answer. O b. typically applies overhead costs using…
A: Costing is described as a process in which the costs are assigned to each element of the…
Q: A factory overhead rate applied to the whole plant is based on the assumption that all overhead is…
A: The Answer
Q: Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have…
A: The question is based on the concept of Cost Accounting.
Q: Match each of the following terms with its correct definition: v job-order costing system A. A…
A: Job order costing is the costing method that determines the manufacturing overhead of each product.…
Q: Overhead costs are assigned to each product based on ________.A. the proportion of that product’s…
A: Overhead is a term used to describe ongoing business expenses that are not directly tied to the…
Q: What is a plantwide overhead rate? Why are multiple overhead rates, rather than a plantwide overhead…
A: Plantwide overhead rate is a single overhead rate which is used by the company to allocate it's…
Q: Discuss why businesses apply overhead to projects using predefined (factory) rates rather than real…
A: This question deals with predefined (factory) rates and real manufacturing overhead expenses.
Q: Which one of the following represents a period cost? Fringe benefits associated with factory workers…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: If the activities that generate overhead costs vary between departments and products, adopting a…
A: The Answer
Q: Which of the following statements best describes why the use of a single plantwide rate to allocate…
A: SOLUTION FORMULA = PLANTWIDE OVERHEAD RATE = TOTAL OVERHEAD / DIRECT LABOR HOURS.
Q: Why are some manufacturing firms switching from direct-labor hours to machine hours or throughput…
A: Direct labor: Direct labor includes the wages of the employees who are directly involved in…
Q: What are the advantages and disavantages of the traditional, activity based costing, and multiple…
A: Cost: It is the economic value of resources incurred by a firm to manufacture a product or render…
Q: A process costing system is employed in those situations where: full or absorption cost approach is…
A: Introduction:- Process costing is an accounting method for tracking and allocating direct and…
Q: In highly automated manufacturing, the most appropriate base for factory overhead application is:…
A: Here, Factory Overhead represent the Indirect Cost that incurred to production in factory other than…
Q: Assigning manufacturing overhead to a specific job is complicated by all of the below except:…
A: Manufacturing Overhead:-It is an indirect cost incurred during the production process. It includes…
Q: Using plant wide FOH rate based on direct labor, how much is the FOH rate per unit Assume in…
A: The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base…
Q: All of the following can be used as an allocation base for calculating factory overhead rates except…
A: Factory overhead: It includes all the costs that are incurred during the process of manufacturing a…
Q: For each of the following costs incurred in a manufacturing operations, indicate whether the costs…
A: Following is the answer to the given question
Q: In an effort to simplify the multiple production department factory overhead rate method, the same…
A: Multiple production department factory overhead method identifies different departments in the…
Q: Asap Which of the following is not a factory overhead allocation method? a.activity-based costing…
A: Introduction: To distribute factory operating expenses to units of production, many cost allocation…
Q: REQUIRED: Determined the amount of factory overhead cost of service departments allocated to…
A: Activity-based costing is a costing method where the indirect cost is assigned to the jobs,…
Q: Plantwide versus Department Direct Method. Bristol company uses the direct method in distributing…
A: Overheads are the indirect costs related to production or manufacturing of goods or things. base
Q: Required: a. Compute the predetermined overhead rate under the current method, and determine the…
A: Activity based costing (ABC) with the help of cost drivers, allocates the overheads to cost pools…
Q: Compute the final amount of estimated overhead of Service E after reciprocal transfer costs have…
A: Overheads of service department are allocated to manufacturing department to calculate the actual…
Q: Describe some costs and benefits of using multiple overhead rates instead of a plantwide overhead…
A: The advantage of using the multiple overhead rates is that the product costing information would…
Q: Use of a plantwide factory overhead rate assumes that the activities causing overhead costs are the…
A: Introduction:Plantwide factory overhead rate: The rate at which overheads are allocated to all the…
Q: hich of the following measures is appropriate as cost driver for personnel administration costs? a.…
A: Cost drivers are the factors which have a direct impact on the overall cost structure of the…
Q: A plantwide factory overhead rate assumes that all overhead is directly related to one activity…
A: Factory Overhead rate:Factory overhead is the indirect cost consisting of indirect material,…
The use of a plantwide manufacturing
True \sFalse
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- Customs has three cost pools and an associated cost driver to allocate the costs to the product. The cost pools, cost driver, estimated overhead, and estimated activity for the cost pool are: What is the predetermined overhead rate for each activity?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 productFrenchys has three cost pools and an associated cost driver to allocate the costs to the product. The cost pools, cost driver, estimated overhead, and estimated activity for the cost pool are: What is the predetermined overhead rate for each activity?
- Use of a plantwide factory overhead rate assumes that the activities causing overhead costs are the same across all departments and products. True FalseThe traditional cost drivers used in computing overhead absorption rates are: a.direct labour hours, machine cost ,direct labour cost b.floor space, rent and rates, machinery value c.direct labour hours, machine hours, direct labour cost d.direct labour cost, machine hours, factory overheadA factory overhead rate applied to the whole plant is based on the assumption that all overhead is directly linked to a single activity that represents the entire plant.True \sFalse
- The traditional cost drivers used in computing overhead absorption rates are: a. direct labour cost, machine hours, factory overhead b. direct labour hours, machine cost ,direct labour cost c. floor space, rent and rates, machinery value d. direct labour hours, machine hours, direct labour costWhich types of overhead allocation methods result in the use of more than one overhead rate during the same time period? Select one: O a. Departmental overhead rate method and activity-based costing. O b. Plantwide overhead rate method and departmental overhead rate method. O c. Departmental overhead rate method and cost pool overhead rate method. O d. Activity-based costing and plantwide overhead rate method. O e. Cost pool overhead rate method and plantwide overhead rate method.Required: 1. SupposeKeller uses a traditionalcosting system withmachine hours as the costdriver. Determine the amount of overheadassigned to each product line.
- Activity-based-costing * a. allocates overhead to multiple activity cost pools, and it then assigns the activity cost pools to products and services by means of cost drivers. b. accumulates overhead in one cost pool, then assigns the overhead to products and services by means of a cost driver. c. assigns activity cost pools to products and services, then allocates overhead back to the activity cost pools. d. allocates overhead directly to products and services based on activity levels.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.What is a plantwide overhead rate? Why are multiple overhead rates, rather than a plantwide overhead rate, used in some companies?
