Question

In: Accounting

define manufacturing cost? define direct materials? define direct labour? define manufacturing overhead? required : Write very...

define manufacturing cost?
define direct materials?
define direct labour?
define manufacturing overhead?

required : Write very briefly

Solutions

Expert Solution

Manufacturing cost is aggregate of all the cost occured in the manufacturing of the product.Thses costs impact the production of the compact and also impact the valuation of the inventory.Thses Costs effects the profit of the business.These are classified further -

Direct Material

Direct Labour

Manufacturing Overhead

Direct Material

Direct Materials are the raw material that used up in the manufacturing of the product.These are the costs that directly effect the production of the company.these cost form an important part of the production so company should take a look towards the prices of the raw material to control the costs of the company

Direct Labour

Theses are wages to the labourer that have contribution in the production of the company.These people help in converting the raw material into the finished produtcs.Thses people should efficient as well as effective in their work to achieve the goals of the company and bring down their cost as more as possible.

Manufacturing Overhead

These are the indirect cost which provides the support to the direct cost in manufacturing process of the company.These cost generally are not traceable but form important part of the production.These Further includes

Indirect Material - These are the extra cost used in the manufacturing of the product such as grease lubricants & Water

Indirect Labour - Theses cost includes salary and wages to the people who donot form part of the production but helps in efficient running of the production.these opeople are generally knowledgeable and helps in the technical process.

Other Manufacturing Cost - These are the cost which donot get covered above but are the expenses of the company e.g Depreciation , transportation and electricity.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

define manufacturing cost? define direct materials? define direct labour? define manufacturing overhead? required : Write very...
define manufacturing cost? define direct materials? define direct labour? define manufacturing overhead? required : Write very briefly
Case Prime Cost Conversion Cost Direct Materials Direct Labor Manufacturing Overhead Total Manufacturing Cost A 9,480...
Case Prime Cost Conversion Cost Direct Materials Direct Labor Manufacturing Overhead Total Manufacturing Cost A 9,480 16,460 4,040 11,020 B 10,010 7,330 25,200 42,540 C 55,700 110,300 42,300 D 48,150 19,900 11,750 68,050 E 14,000 24,300 56,200 For each of the following independent cases (A–E), compute the missing values in the table:
Compute the cost and efficiency variances for direct materials and direct labor. 2. For manufacturing​ overhead,...
Compute the cost and efficiency variances for direct materials and direct labor. 2. For manufacturing​ overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. 3. HeadsetHeadset​'s management used better quality materials during September. Discuss the​ trade-off between the two direct material variances. Standard Cost Information Quantity Cost Direct Materials 2 parts $0.15 per part Direct Labor 0.02 hours 9.00 per hour Variable Manufacturing Overhead 0.02 hours 11.00 per hour Fixed Manufacturing Overhead...
Variable Cost Per Unit: Manufacturing: Direct Materials = $20 Direct Labor = $12 Variable Manufacturing Overhead...
Variable Cost Per Unit: Manufacturing: Direct Materials = $20 Direct Labor = $12 Variable Manufacturing Overhead = $4 Variable Selling and Administrative = $2 Fixed costs per year: Fixed manufacturing overhead = $960,000 Fixed selling and administrative expenses = $240,000 During its first year of Operations, produced 60,000 units and sold 60,000 units. During it's second year of operations, it produced 75,000 and sold 50,000 units. In its third year, it produced 40,000 units and sold 65,000 units. The selling...
1. Identify at least one example of a manufacturing cost (direct labor, direct materials, or overhead...
1. Identify at least one example of a manufacturing cost (direct labor, direct materials, or overhead costs) associated with value added activities a non-profit homeless shelter.. 2.Which one of these: direct labor, direct materials, or overhead costs are most prominent (make up more of a non-profit homeless shelters costs)? It is fine to conjecture on this answer. You may not have access to the data.
Morton Company has two divisions. Sales, direct materials cost, direct labor cost, and manufacturing overhead data...
Morton Company has two divisions. Sales, direct materials cost, direct labor cost, and manufacturing overhead data for Morton’s two divisions are available below. Note: All of Morton Company’s products are sold in competitive markets.                                                                     Missile                                Salt                                                                  Products                       Products Sales                                                     $1,500,000                    $1,000,000 Direct labor                                            (800,000)                       (300,000) Direct materials                                     (100,000)                         (40,000) Manufacturing overhead*                    (400,000)                       (150,000) Gross profit                                            $200,000                        $510,000    *Manufacturing overhead is allocated to production based on the amount of direct labor cost.            Morton has determined that its total...
Morton Company has two divisions. Sales, direct materials cost, direct labor cost, and manufacturing overhead data...
Morton Company has two divisions. Sales, direct materials cost, direct labor cost, and manufacturing overhead data for Morton’s two divisions are available below. Note: All of Morton Company’s products are sold in competitive markets. Missile Salt Products Products Sales $1,500,000 $1,000,000 Direct labor (800,000) (300,000) Direct materials (100,000) (40,000) Manufacturing overhead* (400,000) (150,000) Gross profit $200,000 $510,000 *Manufacturing overhead is allocated to production based on the amount of direct labor cost. Morton has determined that its total manufacturing overhead cost...
Variable cost (per pound) Direct materials $3.75 Direct manufacturing labor 8.00 Variable overhead (manufacturing, marketing, distribution...
Variable cost (per pound) Direct materials $3.75 Direct manufacturing labor 8.00 Variable overhead (manufacturing, marketing, distribution and customer service) 2.05 Total variable cost per bowl $13.80 Fixes costs Manufacturing $12,000 Marketing, distribution, and customer service 214,800 Total fixed cost $226,800 Selling price $30 Expected sales, 19,500 units $585,000 Income tax rate 40% S.L. Brook and​ Company, a manufacturer of quality handmade walnut​ bowls, has had a steady growth in sales for the past 5 years.​ However, increased competition has led...
The following cost information is available: Direct materials     $420 Direct labor (variable)    110 Variable manufacturing overhead...
The following cost information is available: Direct materials     $420 Direct labor (variable)    110 Variable manufacturing overhead 80 Fixed manufacturing overhead 30 A supplier has offered to sell the component to CM for $650 per unit. If 4-I buys the component from the supplier, the released facilities can be used to manufacture a product that would generate a contribution margin of $10,000 annually. Assuming that 4-I needs 4,000 components annually and that the fixed manufacturing overhead is unavoidable, what would be...
9-Morton Company has two divisions. Sales, direct materials cost, direct labor cost, and manufacturing overhead data...
9-Morton Company has two divisions. Sales, direct materials cost, direct labor cost, and manufacturing overhead data for Morton’s two divisions are available below. Note: All of Morton Company’s products are sold in competitive markets. Missile Salt Products Products Sales                                                  $1,500,000                       $1,000,000 Direct labor                                           (300,000)                          (800,000) Direct materials                                   (100,000)                             (40,000) Manufacturing overhead*                (150,000)                          (400,000) Gross profit                                          $950,000                         ($240,000) *Manufacturing overhead is allocated to production based on the amount of direct labor cost.         Morton has determined that its total manufacturing overhead...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT