Question
In: Accounting
Should software and manufacturing overhead such as factory mortgage payments and insurance be allocated to the iPhone product costs (aka inventoriable cost) and why?
Should software and manufacturing overhead such as factory mortgage payments and insurance be allocated to the iPhone product costs (aka inventoriable cost) and why?
Solutions
Expert Solution
Yes, software and manufacturing overhead are to be included in the cost of iphones as the software is integral feature of iphone without software iPhone will not work at all.similarly the manufacturing overhead are indirect costs that are incurred in relation to manufacture of products at factory, so along with direct material and direct labour manufacturing costs are to be assigned to each product produced.
The above answer is based on my opinion
ekkarill92 answered 2 years agoRelated Solutions
The following cost functions were developed for manufacturing overhead costs: Manufacturing Overhead Cost Cost Function Electricity...
The following cost functions were developed for manufacturing
overhead costs: Manufacturing Overhead Cost Cost Function
Electricity $200 + $20 per direct labor hour Maintenance $400 + $30
per direct labor hour Supervisors' salaries $20,000 per month
Indirect materials $16 per direct labor hour
If June production is expected to be 2,000 units requiring 3,000
direct labor hours, what is the estimated manufacturing overhead
costs? Also discuss the role of direct labor hours in determining
the predetermined overhead rates.
The following cost functions were developed for manufacturing overhead costs: Manufacturing Overhead Cost Cost Function Electricity...
The following cost functions were developed for manufacturing
overhead costs: Manufacturing Overhead Cost Cost Function
Electricity $200 + $20 per direct labor hour Maintenance $400 + $30
per direct labor hour Supervisors' salaries $20,000 per month
Indirect materials $16 per direct labor hour
If June production is expected to be 2,000 units requiring 3,000
direct labor hours, what is the estimated manufacturing overhead
costs? Also discuss the role of direct labor hours in determining
the predetermined overhead rates.
The cost of materials entering directly into the manufacturing process is classified as factory overhead cost....
The cost of materials entering directly into the
manufacturing process is classified as factory overhead
cost.
a.
True
b.
False
Indirect labor would be included in factory
overhead.
a.
True
b.
False
Depreciation expense on factory equipment is part of
factory overhead cost.
a.
True
b.
False
Direct labor cost is an example of a period
cost.
a.
True
b.
False
Custom-made goods would be accounted for using a process
costing system.
a.
True
b.
False
In a process costing...
Consider the following: Product Sales Price Variable Production Cost Allocated fixed manufacturing overhead X $40 12 36363
Consider the
following:
Product Sales Price Variable Production
Cost Allocated fixed manufacturing overhead
X $40 12 36363.64
Y $60 30 29090.91
Z $92 55 14545.45
The sales ratio for X:Y:Z
is 10:8:4
Total current sales
(units) 16000
Additionally, average cost data for two levels of sales volume
are as follows:
Sales Volume (units)
10,000 30000
Administration Expense (per unit) $18
6
Sales & Marketing (per unit) $12
12
Other Operating Expense $2.40
1.8
ABC company is subject to a 40% income tax
rate.
X company's current margin of safety is:
How many units of Product...
Savannah Factory applies manufacturing overhead based on direct labor cost. Information concerning manufacturing overhead and labor...
Savannah Factory applies manufacturing overhead based on direct
labor cost. Information concerning manufacturing overhead and labor
for August follows:
Estimated Actual
Overhead cost $174,000 $171,100
Direct labor hours 5,800 5,900
Direct labor cost $87,000 $89,975
How much overhead should be applied in total during August?
A. $179,950
B. $174,000
C. $177,000
D. $171,100
The manufacturing operations of Saltic Enterprises had the
following balances for the month of
March:
March 1, 2013 March 31, 2013
Raw Materials $11,000 $14,000
Work in...
determine the total amount of manufacturing overhead,product costs & period costs
Caroline Company reports the following costs and expenses in May.Factory Utilities 11,500Depreciation on factory equipment 12,650Depreciation on delivery trucks 3,800Indirect factory labor 48,900indirect materials 80,800Direct materials used 137,600Factory manager's salary 8,000Direct labor 69,100Sales salaries 46,400Property taxes on factory building 2,500Repairs to office equipment 1,300factory repairs 2,000Advertising 18,000office supplies used 2,640
InstructionsFrom the information, determine the total amount of:(a) Manufacturing overhead.(b) Product costs.(c) Period costs.
1. Which of the following costs is typically not a fixed overhead cost for a factory?...
1. Which of the following costs is typically not a fixed
overhead cost for a factory?
A.Salaries of factory supervisors.
B.Rent on the factory building.
Property taxes on the factory building.
C.Indirect materials used in production.
D. None of the answer choices is correct.
2.Which of the following costs does not change in total when the
activity level increases or decreases within the relevant
range?
A.mixed costs
B.fixed cost
C.variable costs
D.relevant costs
E.None of the answer choices is correct....
Why are overhead cost elements growing as a percentage of total manufacturing costs, while direct labor...
Why are overhead cost elements growing as a percentage of total
manufacturing costs, while direct labor and direct material costs
are shrinking?
Why is cost accounting less constrained than financial accounting
is by formal rules imposed from outside the firm?
Since costs of joint products are quite arbitrarily arrived at,
what possible use do they have in an accounting
system?
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget
Leno Manufacturing Company prepared the following factory
overhead cost budget for the Press Department for October of the
current year, during which it expected to require 18,000 hours of
productive capacity in the department:
Variable overhead cost:
Indirect factory labor
$165,600
Power and light
5,760
Indirect materials
46,800
Total variable overhead
cost
$218,160
Fixed overhead cost:
Supervisory salaries
$76,360
Depreciation of plant and equipment
48,000
Insurance and property taxes
30,540
Total fixed overhead
cost
154,900
Total factory...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget
Leno Manufacturing Company prepared the following factory
overhead cost budget for the Press Department for October of the
current year, during which it expected to require 9,000 hours of
productive capacity in the department:
Variable overhead cost:
Indirect factory labor
$76,500
Power and light
2,790
Indirect materials
21,600
Total variable overhead
cost
$100,890
Fixed overhead cost:
Supervisory salaries
$35,310
Depreciation of plant and equipment
22,200
Insurance and property taxes
14,120
Total fixed overhead
cost
71,630
Total factory...
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