Question

Which of the following is not a product cost? Direct materials costs Selling costs Direct labor...

Which of the following is not a product cost? Direct materials costs Selling costs Direct labor costs Factory overhead costs

Homework Answers

Answer #1
  • Concept

Variable Costing:

Product Cost under Variable costing includes direct material cost, direct labor cost, and variable manufacturing overhead only.

Fixed manufacturing overhead do not form part of the Product cost.

Absorption Costing:

Product Cost under Absorption costing includes direct material cost, direct labor cost, variable manufacturing overhead AND fixed manufacturing overheads.

>Selling, General and administrative expenses (BOTH Variable and Fixed) DO NOT FORM part of product cost.

Product Cost

Absorption Costing

Variable Costing

Direct material

Direct material

Direct Labor

Direct Labor

Variable manufacturing overhead

Variable manufacturing overhead

Fixed manufacturing overhead applied

-

  • Correct Answer = Option #2
    Selling Cost is not a Product Cost.
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following would not be considered a product cost? Multiple Choice Direct labor costs....
Which of the following would not be considered a product cost? Multiple Choice Direct labor costs. Factory supervisor's salary. Factory line worker's salary. Cost accountant's salary. Manufacturing overhead costs.
78. Prime costs include______________ and conversion costs include______________. a. Direct Materials and Direct Labor Direct Labor...
78. Prime costs include______________ and conversion costs include______________. a. Direct Materials and Direct Labor Direct Labor and Manufacturing Overhead b. Direct Materials and Manufacturing Overhead Direct Labor and Manufacturing Overhead c. product and period d. Work in Process and Raw Materials Manufacturing Overhead and Direct Materials 80. Depreciation expense on factory equipment should be assigned to: a. depreciation expense b. manufacturing overhead c. accumulated depreciation d. work in process
Select a product that you use and list some of the manufacturing costs (direct materials, direct...
Select a product that you use and list some of the manufacturing costs (direct materials, direct labor, variable factory overhead, and fixed factory overhead). Indicate which would be included in the cost of goods sold under variable and absorption costing.
Categorize the following costs into product and direct material, product and direct labor, product and manufacturing...
Categorize the following costs into product and direct material, product and direct labor, product and manufacturing overhead, period and selling and marketing expense and period and general and admin expense.       -       A.       B.       C.       D.       E.    Wages of salespersons are       -       A.       B.       C.       D.       E.    Salaries of machine operators are       -...
Direct Materials, Direct Labor, and Reports budgeted and actual costs for variable and fixed factory overhead...
Direct Materials, Direct Labor, and Reports budgeted and actual costs for variable and fixed factory overhead along with the related controllable and volume variances.Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. A detailed estimate of what a product should cost.Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 6,800 units of product were as follows: Standard Costs Actual Costs Direct materials 8,800 lb. at $4.90 8,700...
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical...
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 7,200 units of product were as follows: Standard Costs Actual Costs Direct materials 9,400 lb. at $5.10 9,300 lb. at $5.00 Direct labor 1,800 hrs. at $18.20 1,840 hrs. at $18.40 Factory overhead Rates per direct labor hr., based on 100% of normal capacity...
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical...
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 6,000 units of product were as follows: Standard Costs Actual Costs Direct materials 7,800 lb. at $5.60 7,700 lb. at $5.50 Direct labor 1,500 hrs. at $17.70 1,530 hrs. at $18.10 Factory overhead Rates per direct labor hr., based on 100% of normal capacity...
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical...
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 5,200 units of product were as follows: Standard Costs Actual Costs Direct materials 6,800 lb. at $6.00 6,700 lb. at $5.90 Direct labor 1,300 hrs. at $16.50 1,330 hrs. at $16.80 Factory overhead Rates per direct labor hr., based on 100% of normal capacity...
Inventory Valuation under The reporting of the costs of manufactured products, normally direct materials, direct labor,...
Inventory Valuation under The reporting of the costs of manufactured products, normally direct materials, direct labor, and factory overhead, as product costs.Absorption Costing and The concept that considers the cost of products manufactured to be composed only of those manufacturing costs that increase or decrease as the volume of production rises or falls (direct materials, direct labor, and variable factory overhead).Variable Costing At the end of the first year of operations, 6,200 units remained in the finished goods inventory. The...
1.Manufacturing costs are typically classified as Select one: a. direct materials or direct labor b. product...
1.Manufacturing costs are typically classified as Select one: a. direct materials or direct labor b. product costs or period costs c. direct materials, direct labor, or manufacturing overhead d. direct materials, direct labor, or selling and administrative 2. Raw materials inventory, January 1 $ 12,000 Raw materials inventory, December 31 16,000 Work in process, January 1 5,000 Work in process, December 31 8,000 Finished goods, January 1 17,000 Finished goods, December 31 12,000 Raw materials purchases 118,000 Direct labor 165,000...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT