Underallocated overhead occurs when: A) allocated overhead costs are less than actual overhead costs. B) actual overhead costs are less than allocated overhead costs. C) estimated overhead costs are greater than budgeted overhead costs. D) estimated overhead costs are greater than actual overhead costs.

Q: Overapplied manufacturing overhead occurs when: a. applied overhead exceeds actual overhead. b.…

A: Introduction: Underapplied overhead: Overheads are expenses. Underapplied means the applied overhead…

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: Overhead costs are underapplied if the amount applied to Work in Process is: O a. greater than…

A: Choice: cost of merchandise sold   Clarification:   At the point when overhead is under-applied and…

Q: Under absorption costing, fixed manufacturing overhead costs are: A. are deferred in inventory when…

A: Absorption costing method :— Under this method, product cost is calculated by adding direct…

Q: There must be a correlation between the activity and changes in the amount of overhead.   True /…

A: Correlation:-It refers to the statistical relationship between two variables or activities.…

Q: Indirect costs are known as: (a)  Avoidable costs (b)  Overheads (c)  Incremental costs (d)…

A: 1) Indirect costs means costs which are not directly related to cost of production. Indirect costs…

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: Over-applied overhead happen when Select one: O a. Actual costs are more than the total amount of…

A: Over- applied Overhead is favourable Variance

Q: Which accounts are adjusted for the under-allocated or over-allocated overhead in JIT costing?

A: Just-in-time manufacturing system:     Just-in-time (JIT) manufacturing system is an approach to…

Q: Overhead needs to be allocated only to "jobs" but not to "processes

A: Overheads represents expenditure on labour,materials that cant be economically identified with…

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

A:

Q: the allocation base for applying overhead product the allocation base for applying overhead product…

A: The concept of activity-based costing requires identifying the cost pool, cost driver, number of…

Q: What is the overall variance in overhead?

A: Overhead refers to secondary expenditures spent during the manufacturing and distribution of…

Q: TRUE OR FALSE When absorption costing is used for external reporting, variable costing can still be…

A: There are various approaches which can be prepared for reporting purpose. Two of which are variable…

Q: Under-applied manufacturing overhead costs are always the result of which of the following…

A: Actual overhead is the actual expense incurred related to the overhead during the period whereas…

Q: Indirect material cost is that which cannot be conveniently identified with and allocated to cost…

A: Cost: It can be defined as the total amount that is spent by a business in manufacturing a product.

Q: Overhead costs are underapplied if the amount applied to Work in Process is: a. greater than actual…

A: Overhead means the cost incurred indirectly for the production of goods.

Q: True False

A: Overhead allocation involves distributing indirect production costs to products or services based on…

Q: The term "relevant range" means the range over which: a particular cost formula is valid. production…

A: Lets understand the basics.Cost accounting is that branch of accounting in which all costs incurred…

Q: Which types of overhead allocation methods result in the use of more than one overhead rate during…

A: The objective of the question is to identify the overhead allocation methods that result in the use…

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: One disadvantage of activity-based costing is that it cannot be used for external reporting. This is…

A: Introduction Activity based Costing (ABC) is a method of assignment of overhead costs to the…

Q: The difference between the actual costing and normal costing methods is that actual costing uses a…

A: Actual costing is a costing method that assigns actual direct costs and actual indirect costs…

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: When actual overhead costs exceed overhead applied, overhead is said to be underapplied. TRUE FALSE

A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

Q: Prime Costs

A: Prime Costs is a term used in cost accounting. It is computed while preparing the manufacturing…

Q: Direct labor and manufacturing overhead often are combined into a single cost category termed…

A: Lets understand the basics. Costs are divided into several parts which are, (1) Prime cost (2)…

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

A: The overhead costs refer to the costs that are incurred in the operating and manufacturing process,…

Q: Product costs are also called: * Direct costs. Overhead costs. Manufacturing overhead costs None of…

A: Product cost includes, Cost which is arises to manufacture a product directly i.e  Direct Material ,…

Q: What does it means when the Overhead rates in the direct method have a figure which is higher than…

A: Overheads: It refers to the business indirect expenses that are required to run a business activity.…

Q: When direct labor is a relatively small amount compared to material and overhead, it is often…

A: Overhead:- It refers to the ongoing expenses incurred in the production of goods indirectly. It…

Q: not easily traceable and are allocated to a cost object u not abbreviate or add any extra spacing in…

A: Direct costs refer to those expenses which can be directly related to a product or a service.

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.