AC
Aable Company's manufacturing overhead is 20% of its total conversion costs. If direct labor is $45,000 and if direct materials are $53,000, the manufacturing overhead is:
CC= DL +OH .8CC=45,000 CC=56,250 OH=11,250
Knowel Company's direct labor is 40 percent of its conversion cost. If the manufacturing overhead cost for the last period was $60,000 and the direct materials cost was $30,000, the direct labor cost was:
CC=DL+OH .60CC=60,000 CC=100,000 DL=40,000
Product Costs
DM+DL+MOH
Prime Costs
Direct Materials + Direct Labor
Conversion Costs
Overhead + Direct Labor + Indirect Labor
Period Costs
Selling expense + admin expense
manufacturing overhead applied
actual DL hours * predetermined overhead rate
variable cost
change in cost/change in activity
manufacturing overhead includes
depreciation on factory equipment factory rent factory utilities indirect labor indirect materials
predetermined overhead rate
est total MOH/est total DL hours
depreciation of the annex space, 8000/year
fixed cost, manufacturing overhead, sunk cost
rental cost of warehouse, 500/month
fixed cost, period cost
depreciation for execs automobiles
fixed, administrative costs
property taxes, factory
fixed, indirect product cost
supervisor salary, factory
fixed, indirect product cost
magazine subscriptions factory lunchroom
fixed, indirect product costs
advertising costs
fixed, selling costs
insurance, finished goods warehouses
fixed, selling costs
over/under applied
manufacturing overhead applied - manufacturing overhead incurred
rental revenue foregone
opportunity cost
return earned on investment, 9%/year
opportunity cost
fixed cost in variable cost equation
total cost - variable cost
direct materials cost, 80 per unit
variable cost, direct materials cost
boxes used for packaging product
variable, direct product cost
microchips used in producing calculators
variable, direct product costs
wages of workers assembling computers
variable, direct product costs
thread in a garment factory
variable, indirect product cost
lubricants for production equiptment
variable, indirect product costs
salesperson commissions
variable, selling cost
shipping costs on merchandise sold
variable, selling costs
mixed cost funciton
y= a +bx
