A. Office salaries 8 statements is True regarding product and per expense is a p

Question

A. Office salaries 8 statements is True regarding product and per expense is a product cost and factory maintenance is period cost C. F D. Delive oficerentiss ar product cost and supervisors' salaries expense is a very expense is a product cost and indirect materials is a peri e rent is a product cost and supervisors' salaries ex actory rent is a product cost and advertising expens ad adven ising expense is a period cost prod cost A ead applied is less than actual overhead incurred, it is A. Fully applied B. Underapplied. C. Overapplied. D. Expected. herocess Inventory aecount for AB Manufacturing follows. Compute the cow of jobs completed and transferred to Finished Goods Inventory Goods in Process Inventory Beginning balance Direct materials Direct labor 4,500 47.100 29.600 15,800 8.900 Finished goods Applied overhead Ending balance The cost of units transferred to finished goods is: A. $97.000. B. $105,900. C. $88,100. D. $95,200. 55 An activity-based costing system would probably not be appropriate if A. A company produces more than one product line. B. A company produces only one product. C. A company is highly automated D. A company has more than one production facility.

Explanation / Answer

52.

Option C is correct:

Factory rent is a product cost and advertising expense is a period cost

Explanation:

Main difference between product and period cost is that product cost is related with production or acquisition of product and period cost are related with the passage of time.

When there is no production or inventory purchasing activities there is no product costs.

Factory rent is a product cost as it relates with production activities and advertising expense is a period cost as it relates with selling activities.

53. Option b=underapplied

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