Under Standard Costing System, direct material price variance shall be appropriately computed using A. Actual direct materials used B. Actual direct materials purchased C. Actual direct materials wasted D. Actual direct materials converted to work in process

Q: The controller has asked you do determine what method you think would be the best approach to…

A: Weighted Average Cost Method: According to accounting principles, the Weighted Average Cost (WAC)…

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: Conversion costs are: A. direct material, direct labor, and manufacturing overhead. B. direct…

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

Q: Direct labor is included in the computation for the cost classified as     Group of answer choices…

A: Prime cost = Direct material + Direct labor Product cost = Direct material + Direct labor +…

Q: Describe fixed manufacturing overhead under absorption costing.

A: Absorption costing: Under this method, manufacturing cost such as direct material and labor is…

Q: Overheads applied are calculated by: a.OAR times the estimated cost driver activity b. Budgeted…

A: Overhead is applied on the actual cost driver at the rate based on the estimated overhead and…

Q: Under a standard cost system, when recording the use of direct materials in the production process,…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: The following may be included in the cost of inventories, except:   a. Selling costs b. Wasted…

A: Inventoriable cost means the cost incurred to manufacture the product and included in inventory.…

Q: In a Standard Costing System, "quantity standards" specify:   How much should be paid for each unit…

A: The objective of the question is to understand what 'quantity standards' specify in a Standard…

Q: Differences between a job order cost system and a process cost system include all of the following…

A: Job Order Cost System and Process Cost System are two different costing methods used in managerial…

Q: Find out the categories as per the concept of Activity based costing: 1.Indirect consumables…

A: Activity based costing is costing method where it consist of various levels of activities namely…

Q: Common allocation bases are a. direct labor dollars, direct labor hours, and machine dollars Ob.…

A: The distribution process of different cost to different overhead is called the cost allocation.it is…

Q: Which of the following statements is true about byproduct costing?    Byproduct costs are allocated…

A: Byproduct costing is the method of allocating costs to the main product and byproducts in a…

Q: Which of the following is a conversion cost?A. raw materialsB. direct laborC. sales commissionsD.…

A: Conversion costs seem to be the expenses of converting raw resources into finished goods. In cost…

Q: Describe the distinctive characteristic of weighted-average computations in assigning costs to units…

A: Weighted Average Method: Weighted average method is the method in which per-unit cost is calculated…

Q: By reference to the above data, explain the concept of equivalent units in process costing.

A: In process costing, some units may have fully finished but other units may still be under…

Q: Under direct/marginal costing, a unit of product includes which costs? direct material, direct…

A: Marginal costing is the method of determining the operating income. It separately shows the variable…

Q: The standards for direct materials are made up of which of the following components? a.variance…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: Units that are partially completed production are classified in the balance sheet as Select one: O…

A: Raw material means the material purchased and still not enter in to the production lines. Work in…

Q: When computing the cost per equivalent unit the weighted-average method of process costing, the cost…

A: Weighted Average Method :— Under this method, equivalent units is calculated by adding equivalent…

Q: lative to traditional product costing, activity-based costing differs in the way costs are Group of…

A: There are different methods of costing in the accounting some are simple but others are not so…

Q: In a process costing system, the cost per equivalent unit must be computed before computing…

A: Note : Cost per equivalent units = Cost / Equivalent units

Q: Distinguish between the following: i. allocation and apportionment  ii. job and batch costing

A: The costing methods are used to determine the cost. The company is required to determine the cost to…

Q: Discuss the standard costing and variance analysis of material and labour cost elements with an…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: An activity-based overhead rate is computed as follows: actual overhead divided by estimated use of…

A: Activity-based costing (ABC) is a complex but accurate cost allocation method for a product or…

Q: Compute predeterminedoverhead rates and explainwhy estimated overhead costs(r ather than actual…

A: Cost:   It is the economic value incurred by the business to manufacture a product or to render a…

Q: Under either weighted average or FIFO, when materials are added at the beginning of a process,…

A: When the Material introduces at the start of the process and all conversion costs are added…

Q: Which of the following statements regarding process costing are true? 1. When computing the cost per…

A: Process costing is a method of cost apportionment and allocation based solely on the process and is…

Q: Explain the use of costing method in the preparation of production cost report.

A: Cost:   It is an economic value incurred by the business to produce a product or to render a…