BUSINESS COLLEGE

LO 6.5Under absorption costing, a unit of product includes which costs?direct material, direct labor, and manufacturing overhead
direct material, direct labor, and variable manufacturing overhead
direct material, direct labor, and fixed manufacturing overhead
direct material, direct labor, and all variable manufacturing overhead

Answers

Answer 1
Answer:

Answer: direct material, direct labor, and fixed manufacturing overhead

Explanation: In calculating product cost in a manufacturing environment, there are two types of costing namely the variable costing method and absorption costing method.

Under absorption costing, a unit of product includes direct materials, direct labour, variable overheads and all fixed manufacturing overhead.

under this method, all variable cost as well as fixed cost are all included in the cost of a product.

Absorption costing is required by GAAP and so has to be using in preparing the financial accounts.
Answer 2
Answer:

Under absorption costing, a unit of product includes all production costs, namely direct material, direct labor, and both variable and fixed manufacturing overhead.

Under absorption costing, a unit of product includes all costs that are involved in the manufacturing process. These costs include direct material, direct labor, and both variable and fixed manufacturing overhead. To elaborate, direct materials are the raw materials used in producing the product, direct labor is the hands-on labor involved in production, and manufacturing overhead consists of indirect costs associated with production such as factory rent, utilities and production manager salaries. Both variable and fixed overhead costs should be included, with the former changing with the level of production and the latter remaining constant regardless of the production volume.

Learn more about Absorption Costing here:

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Related Questions

SCHMIDT MACHINERY COMPANY Standard Cost Sheet Product: XV-1 Descriptions Quantity Cost Rate Subtotal Total Direct materials Aluminum 4 pounds $25/pound $100 PVC 1 pound 40/pound 40 Direct labor 5 hours 40/hour 200Variable factory overhead 5 hours 12/hour 60Total variable manufacturing cost $400Fixed factory overhead 5 hours 24/hour 120 120Standard manufacturing cost per unit $520Standard variable selling and administrative cost per unit I pound 50 * Budgeted fixed factory overhead cost = $120,000 Assume that Schmidt Machinery Company had the standard costs reflected in Exhibit 14.5. In a given month, the company used 3,470 pounds of aluminum to manufacture 935 units. The company paid $28.90 per pound during the month to purchase aluminum. At the beginning of the month, the company had 54 pounds of aluminum on hand. At the end of the month, the company had only 34 pounds of aluminum in its warehouse. Schmidt used 4,400 direct labor hours during the month, at an average cost of $41.90 per hour. Required: Compute for the month the following variances: 1. The purchase-price variance for aluminum. Indicate whether this variance is favorable (F) or unfavorable (U). 2. The usage variance for aluminum. Indicate whether this variance is favorable (F) or unfavorable (U). 3. The direct labor rate variance. Indicate whether this variance is favorable (F) or unfavorable (U). 4. The direct labor efficiency variance. Indicate whether this variance is favorable (F) or unfavorable (U).
Arness Woodcrafters sells $300,000 of receivables to Commercial Factors, Inc. on a with recourse basis. Commercial assesses a finance charge of 6% and retains an amount equal to 3% of accounts receivable. Arness estimates the fair value of the recourse obligation to be $8,000. Prepare the journal entry for (a) Arness and (b) Commercial Factor
When using project management software, estimates of work time should be entered only at the work package level; the rest of the WBS items are just groupings or _____ tasks.
If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred
__ analysis is based on the concept that the longer you have to wait to receive money, the less valuable it is right now.

Sammy and Monica, both age 67, incur and pay medical expenses in excess of insurance reimbursements during the year as follows: For Sammy $16,000
For Monica (spouse) 4,000
For Chuck (son) 2,500
For Carter (Monica’s father) 5,000
Sammy and Monica’s 2019 AGI is $130,000. They file a joint return. Chuck and Carter are Sammy and Monica’s dependents.
What is Sammy and Monica’s medical expense deduction for regular income tax purposes?

Answers

Answer:

The Sammy and Monica’s medical expense deduction for regular income tax purposes is $17,750.

Explanation:

For the purpose of regular income tax, the deduction pertaining to medical expenses are available up to the extent it exceeds 10% of AGI.

Deduction available = excess expenses incurred - 7.5% of AGI

                                 = ($16,000  + 4,000  + 2,500+5,000) - 7.5%*130000

                                  = 27500 - 9.750

                                  = $17,750

Therefore, The Sammy and Monica’s medical expense deduction for regular income tax purposes is $17,750.

you recently increased you're spending on marketing by 10%. you now spend 5500 per month. revenue increase by 1000 per month and you're gross margin percentage is 70%. All other expenses stayed consant. Did the increase pay off?

Answers

Answer:

Answer is yes

Explanation:

Customers who face the same general needs of the marketplace but are likely to experience them months or years earlier than the rest of the market and stand to benefit disproportionately from solutions to those needs are referred to as _____. Multiple Choice A. laggards
B. lead users
C. early followers
D. intrapreneurs

Answers

Answer:

Letter B is correct. Lead Users.

Explanation:

Term developed by prof. Eric von Hippel, Lead Users are those users who are able to transform, adapt and modify a company's product or service for their own benefit, as they face the same market needs a while before regular users.

For Prof Eric von Hippel, there are four steps in developing Lead Users:

  1. Preparation,
  2. Needs and Trends Identification,
  3. Lead Users Identification, and
  4. Concept Design.

The premise is that the Lead Users method is effective in identifying innovation and product trends that need to be developed for a market for your needs.

The balance of stockholders' equity at the beginning of the year and the end of the year was $ 45 comma 000 $45,000 and $ 64 comma 000 $64,000?, respectively. The company issued no common stock during the year. Dividends were $ 25 comma 000 $25,000. What was the net income or loss for the? year? A. Net loss of $ 89 comma 000 $89,000 B. Net income of $ 44 comma 000 $44,000 C. Net income of $ 89 comma 000 $89,000 D. Net loss of $ 44 comma 000 $44,000 Converse Florists? & Co. reported assets of $ 1 comma 100 $1,100 and equity of $ 300 $300. What is its debt? ratio? (Round your percentage answer to two decimal? places.) A. 77.73 77.73%
B. 27.27 27.27%
C. 72.73 72.73%
D. 100.00%

Answers

I believe d would be the answer

Perfect Confectionery Co. expects to earn $3.20 per share during the current year, its expected dividend payout ratio (i.e., the proportion of earnings paid out as dividend) is 60%, its expected constant dividend growth rate is 5.0%, and its common stock currently sells for $30.00 per share. New stock can be sold to the public at the current price, but a flotation cost of 10% would be incurred. What would be the cost of equity from new common stock? 10.73% 11.29% 11.82% 12.11% 12.67%

Answers

Answer:

Correct answer is 12.11%

Explanation:

expected dividend =$3.2*60%

=$1.92

Hence cost of equity from new common stock=(D1/Current price(1-Floatation cost)+Growth rate

=1.92/(30(1-0.1))+0.05

=(1.92/27)+0.05

which is equal to

=12.11%(Approx).

Answer: 12.11%

Explanation:

GIVEN THE FOLLOWING ;

Earning per Share = $3.20

Expected dividend pay out ratio.(proportion of earning paid out as interest.)

Cost of stock per share = $30

Dividend growth rate = 5%= 0.05

Floatation cost = 10% = 0.1

Cost of equity=(dividend/(Current price(1-Floatation cost)) +Growth rate

Cost of Equity =[ (1. 92÷(30(1 - 0.1)) + 0.05

Cost of equity = [ (1.92 ÷ (30(0.9)) + 0.05

Cost of equity = (1.92 ÷ 27) + 0.05

Cost of equity = 0.07111111 + 0.05 = 0.121111

0.12111 × 100 = 12.11%

Why is barter inefficient?

Answers

Answer:

People didn't want to trade their goods for other goods anymore.

Explanation:

People wanted to have both their item and another item (which they wanted to buy). Then currency was invented.
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