Under-allocated manufacturing overhead costs are always the result of which of the following situations? Select one: A. Estimated overhead costs are greater than actual overhead costs. B. Applied overhead costs are less than actual overhead costs. C. Actual overhead costs are greater than estimated overhead costs. D. Actual overhead costs are less than applied overhead costs.

Q: Product costs are also called Select one: O a. Indirect material costs. O b. Indirect Labor costs. O…

A: Cost are basically divided between two category: 1. Product Costs 2. Period 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: Overhead costs are underapplied if the amount applied to Work in Process is: a . equal to actual…

A: Applied overheads are the overhead costs assigned on the basis of predetermined overhead rate.…

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

A: Applied overhead costs are costs assigned to products or jobs on the basis of predetermined overhead…

Q: When the predetermined overhead rate is based on the level of activity at capacity, an item called…

A: Variable cost: It is the cost that varies with the change in the level of activity

Q: 2. All of the following are inventoried under variable costing, except A. Direct materials. B.…

A: Hi student Since there are multiple questions, we will answer only first question.

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: Under variable costing, fixed manufacturing overhead is expensed at the time the units are produced.…

A: There are two costing system followed by the organization. (1) Variable costing method (2)…

Q: Which type of manufacturing cost (direct materials, direct labor, variable factory overhead, fixed…

A: Cost of goods manufactured as per Absorption costing =  Direct material + Direct labor + Variable…

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: he following statements is true? bsorption costing treats fixed overhead as an expense in the period…

A: The income statement is prepared using various methods as absorption costing and variable costing.…

Q: Consumption ratios are useful in determining: A. the existence of product-line diversity. B.…

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

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: Which of the following are true regarding activity-basedcosting? a. A primary goal of using ABC is a…

A: Activity-based costing: It is a method that helps in finding the activities performed by a company…

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: An allocation base! O a. is a measure used to assign prime costs to products and services O b.…

A: An allocation base is the basis on which Cost accounting allocates overhead costs.  An allocation…

Q: der traditional costing systems, which calculate a single predetermined overhead rate using volume-…

A: Overhead means the cost indirectly incured for manufacturing the product.

Q: Overapplied overhead means that A. the applied overhead cost was less than the actual overhead cost.…

A: Overheads means Indirect cost incurred in production activity. Overheads can be overapplied or…

Q: “Abnormal rework costs should be charged to a loss account, not to manufacturing overhead.”Do you…

A: Rework:Rework is that type of product that is not satisfy the ultimate needs of the consumer but by…

Q: Which of the following is most likely to be true of the manufacturing overhead costs assigned to a…

A: Answer: Option (a) is the correct answer. An ABC system will assign more manufacturing overhead…

Q: The following statements are correct except? A. ABC eliminates issues of over or under absorption B.…

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

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: Overhead costs are underapplied if the amount applied to Work in Process is: of the given answer is…

A: Manufacturing overhead: It is the indirect cost incurred as a part of manufacturing the products.…

Q: Which of the following is FALSE regarding Variable Costing? O A. Net income will only change if the…

A: Variable costing is a technique of cost accounting where the fixed overheads are not included in the…

Q: Which statement is false? a. Using a single plantwide overhead allocation rate is the simplest…

A:

Q: Variable manufacturing overhead costs are treated as period costs under both absorption and variable…

A: Variable manufacturing overhead cost is treated as product cost under both absorption and variable…

Q: If the predetermined overhead rate is based on the estimated level of activity for the current…

A: There are two main type of costs incurred in manufacturing the goods; 1) Direct costs and 2)…

Q: ?Which one of the following is not correct regarding activity-based costing Activity-based costing…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The primary difference between variable costing and absorption costing is in variable costing,…

A: Absorption Costing: “Absorption costing is a method that allocates “direct labor, direct materials,…

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

A: The correct answer is  Option b. Less than actual overhead incurred.

Q: Indicate whether the following statement is true or false, then support your view. By using a…

A: Traditional method of costing is the method of allocating overheads based on the single cost driver.…

Q: Production cost under marginal costing includes [A] prime cost only [B] prime cost and fixed…

A: Under marginal costing, Fixed costs are not considered while calculating production cost. Marginal…

Q: When production is greater than sales, fixed manufacturing overhead costs are a. Deferred in…

A: When production is greater than sales, fixed manufacturing overhead costs are deferred in inventory…

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

A: Manufacturing overhead costs can be defined as those costs which are incurred during the…

Q: Discuss how traditional methods of allocating overhead to products may not provide a good measure of…

A: The overhead costs are allocated to production using various methods as traditional costing and…

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

A: SOLUTION 1- Overhead is over applied when more overhead is applied to the jobs than was actually…

Q: Variable costing is concerned with the variable costs and includes direct material, direct labor,…

A: There are different approaches to find net income such as variable costing, absorption costing and…

Q: Which of the following is FALSE regarding Variable Costing? A. Net income will only change if the…

A: Variable costing is a cost concept in managerial accounting. In Variable costing, all variable costs…

Q: If the actual amount of the manufacturing overhead allocation base is greater than the estimated…

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

Q: Underallocated overhead occurs when: A) allocated overhead costs are less than actual overhead…

A: 1. Under allocated overhead - When actual manufacturing costs are more than allocated cost. 2. Over…

Q: If the actual overhead costs incurred are in excess of the applied overhead costs, the difference is…

A: Gross margin is calculated by deducting the expenses from the revenues of the company. It is…

Q: Which of the following statements is true? O a. Activity-based costing typically provides less…

A: Volume based costing represents the product costing where factory overhead is allocated to the…

Q: Under which costing system non-manufacturing costs may be included in ?calculating product costs…

A: There are different types of costing systems namely activity based costing system, absorption…

Q: Determining the basis for applying manufacturing overhead costs involves OA. primarily the…

A: Manufacturing overhead costs means all indirect costs incurred in production or selling of goods. It…

Q: Under-applied overhead happen when Select one: O a. Actual costs are equal to the total amount of…

A: Manufacturing overhead or factory overhead can be defined as an indirect manufacturing costs which…