costs incurred during the current period. D. some period costs as well as some product costs. 2. During the month of August‚ direct labor cost totaled $13‚000 and direct labor cost was 20% of prime cost. If total manufacturing costs during August were $88‚000‚ the manufacturing overhead was: A. $52‚000 B. $75‚000 C. $65‚000 D. $23‚000 0.20 x Prime cost = Direct labor 0.20 x Prime cost = $13‚000 Prime cost = $65‚000 Prime cost = Direct materials + Direct labor $65‚000 = Direct materials
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Chapter 7 Variable Costing: A Tool for Management Solutions to Questions 7-1 The basic difference between absorption and variable costing is due to the handling of fixed manufacturing overhead. Under absorption costing‚ fixed manufacturing overhead is treated as a product cost and hence is an asset until products are sold. Under variable costing‚ fixed manufacturing overhead is treated as a period cost and is charged in full against the current period’s income. 7-2 Selling and administrative expenses
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Poverty should be fixed Poverty is one of the most serious issues in the world. When one drives around Los Angeles‚ the person can easily find homeless people who beg for money on freeway off ramps or look for food in garbage cans. People should not neglect them being on the streets because it is unsafe and unclean. The rate of poverty consistently increases every year. Shah states “According to UNICEF‚ 22‚000 children die each day due to poverty. And they ‘die quietly in some of the
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“Growth vs Fixed Mindset” Keeping a positive attitude‚ having perseverance and staying motivated while attending school is paramount to achieving educational success. However‚ what if I told you there is an idea more powerful than any of these notions‚ one that is a game changer‚ both academically and in life‚ AND that we are in complete control of it. This idea is how we perceive our brains and whether our intelligence is something that is fixed or something that can grow and change. “In a fixed mindset
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labor. From this information‚ it appears that the company is using a predetermined overhead rate‚ as a percentage of direct labor costs‚ of: A. 50% B. 200% C. 300% D. 20% 2. Job 607 was recently completed. The following data have been recorded on its job cost sheet: The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 607 would be: A. $4
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of DVDs. The following data are available regarding the models: DVD Selling Price per unit Model LX1 Model LX2 Model LX3 $175.00 $250.00 $300.00 Variable Cost per unit $100.00 $125.00 $140.00 Demand/Year Units 2000 1000 500 VCI is considering the addition of a fourth model to its line of DVDs. This model would be sold to retailers for $375. The variable cost of this unit is $225. The demand for the new Model LX4 is estimated to be 300 units per year. Sixty percent of these unit sales of the new model
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Vice President of Marketing for Dysk Compyer‚ Inc must decide whether to introduce a mid-priced 2 version of the firm’s DC6900 minicomputer product line-the DC6900-X minicomputer. The DC6900-X would sell for $ 3900‚ 3 with unit variable costs of $ 1‚800. Projections made by an independent marketing research firm indicate that the DC6900-X 4 would achieve a sales volume of 500‚000 units next year‚ in its first year of commercialization. One-half of the first year’s
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Mindset A fixed mindset can truly influence your life and everyday decisions. When you have a mindset you believe you are or are not good at something. If someone tells another person something negative or positive about something it can change the way they think about it before they even have experienced it. In the article kids were put in a room to do a puzzle and they weren’t getting it right‚ but they weren’t upset about it they just said to themselves it’s a learning experience. Many people
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company to flex its work force based on demand‚ and ultimately allowed the company to create 300 work-time patterns that offered flexibility for the workers as they saw fit. Additionally‚ as the world economy soured‚ the company was forced to cut overhead costs and reduce staffing but did so in a creative way; they offered early retirement packages‚ did not renew contracts with temporary workers and did not backfill vacant position positions. However‚ the company values its highly-skilled workforce
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over applied overheads it is essential that the process for job-costing is understood. The basic flow of costs in a job-order system begins by recording the costs of material‚ labor‚ and manufacturing overhead. "The use of absorption costing to provide quotes for jobs takes account of both fixed and variable costs. (1) Material and direct labor costs are debited to the ’Work in Process’ inventory. Any indirect material or indirect labor costs are debited to the Manufacturing Overhead inventory‚ (which
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