Exam 4: Cost Accumulation,Tracing,and Allocation

Overhead costs include:

Southeast Manufacturing Company has identified the following cost objects: Cost Object 1: The cost of operating the finishing department Cost Object 2: The cost of a particular product made in June Cost Object 3: The cost of operating the factory With respect to these cost objects,the cost of the salary of the supervisor of the finishing department is directly traceable to cost objects:

The Flintstone Cons

Cobalt Company management has identified the following cost objects: Cost Object 1: The cost of operating the finishing department Cost Object 2: The cost of operating the factory Cost Object 3: The cost of a particular product made in June With respect to these cost objectives,how would rent paid by the finishing department for storage space be classified? A. Direct Direct Direct B. Direct Direct Indirect C. Indirect Indirect Indirect D. Indirect Indirect Direct

Herald Manufacturing Company uses a predetermined overhead rate to allocate fixed manufacturing overhead to production on a monthly basis.At the end of the accounting period it was determined that actual overhead cost was less than the estimated overhead cost and that the actual volume of production was higher than estimated.Based on this information alone:

A cost object is anything for which management desires a separate tracking of costs,while a cost driver is the factor that causes the cost object to increase or decrease.

Haskins Company employs material handling employees who move materials between production divisions at a labor cost of $360,000 a year.It is estimated that these employees move 600,000 pounds of material per year.If 60,000 pounds are moved in March,how much of the material handling cost should be assigned to products made in March? (Do not round your intermediate calculations. )

Indicate whether each of the following statements is

Indicate whether each of the following statements is

Which of the following costs is most likely to be directly traceable to a specific department in a retail clothing store?

How do you account for costs incurred before the split-off point? How do you account for costs incurred after the split-off point?

Cost objects may be:

The management accountant at Morrison,Inc.provided the following estimated costs for producing 2,500 units of a specialty product manufactured by the firm: Direct Materials \ 10,000 Direct Labor (1 hour per unit) 5,000 Unit-level support costs 10,000 Batch level support costs 5,000 Product-level support costs 3,000 Faclity-level support costs 7,000 The company believes that direct labor hours are the most appropriate cost driver for assigning overhead costs to its product. Required: 1)Compute the predetermined overhead rate for this company. 2)Compute the specialty product's total estimated cost per unit. 3)Why do firms assign overhead costs using a predetermined overhead rate instead of assigning actual costs?

A manager believes that the number of units sold drives the company's selling costs.The number of units sold would be referred to as the cost driver.

How are indirect costs assigned to cost objects? Are they traced to cost objects?

Jiminez Company paid its annual property tax of $6,000 on its manufacturing facility in January.The company expects to make 4,000 units of product during the year.During January,300 units of product were produced.Based on this information: