QUESTION 1 The salary of a welder on the assembly line of an airplane manufactur

Question

QUESTION 1 The salary of a welder on the assembly line of an airplane manufacturer would be considered: indrect labor which is a product cost indirect labor which is a period cost Odirect labor which is a product cost direct labor which is a period cost QUESTION 2 Both depreciation on the equipment used to manufacture airplanes and the factory janitorial supplies would be considered: direct material which is a product cost factory overhead which is a product cost factory overhead which is a period cost administrative expense which is a period cost

Explanation / Answer

1. Direct labour which is a product cost

2. factory overhead which is a period cost

3. administrative expense which is a period cost

4. Period cost are expensed each period, while product cost becomes part of the cost of the product and are expensed when the product is sold.

5. Depriciation on sales equipment.

6. 100 per direct laboue hour

predeterminded factory overhead rate = factory overhead / direct labour hour

= 1000000 /10000

= 100.

7. 1250000

applied overhead = 25*50000 = 1250000

8. over applied manufacturing overhead if applied overhead > actual overhead

under applied manufacturing overhead if applied overhead < actual overhead

in the given question applied = 1100000 and actual 100000

applied overhead > actual overhead

overapplied by 100000.

9. Cost of goods sold

10. manufacturing overhead = (direct material cost + direct labour costs + factory ovehead applied) / unit produced

= (10000 + 5000 + 40000) / 1000

= 55000 / 1000

= 55.

In case of any clarification required please comment.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.