What is between direct labor-hours and direct labor cost

Assignment Help Managerial Accounting
Reference no: EM132542614

Overhead costs have not been determined correctly. First of all, there is no division by direct labor-hours and direct labor costs. Secondly, since it's a manufacturing firm, overheads should be classified to machine-related costs and direct labor-related costs. The company produces three different products that involve different level of skills, machine utilization and other factors. Thus, it is incorrect to simply allocate overhead costs based on direct labor cost.

Question 1: Clarify if there is a differnce between "direct Labor-hours" and "direct labor costs"? Wouldn't "direct labor" be one in the same? Also, when this writer states that "since its a manufacturing firm, overheads should be classified to machine related costs and direct labor related costs", I though direct labor is a seperate category that is 'added' to the total MOH?

Reference no: EM132542614

Questions Cloud

Explain single product cost-volume-profit : Explain single product cost-volume-profit (CVP) and break-even analysis. Provide a hypothetical example of CVP and breakeven analysis.
Make a budget for the three level of output measured in unit : Make a budget for the three levels of output measured in units.Bonanza Corporation is in the process of preparing a quarterly budget
Potassium ions and phosphite ions : A 26.06 mL solution of HCl of unknown concentration is neutralized by 19.90 mL of 1.028 M Ca(OH)2 as shown below. What is the concentration
Numerical value-convert the signed decimal number : What is the numerical value of the 8-bit hexadecimal number 0xEF? Convert the signed decimal number 1233 to 16-bit hexadecimal.
What is between direct labor-hours and direct labor cost : Clarify if there is a differnce between "direct Labor-hours" and "direct labor costs"? Wouldn't "direct labor" be one in the same?
Why companies use sourcing instead of in-house development : What might be some reasons why companies use sourcing instead of in-house development? The response must be typed, double spaced, times new roman.
What is the percent yield of the reaction : If a reaction is supposed to produce 8.35 grams of product but only produces 6.66 grams of product, what is the percent yield of the reaction?
What contributes to the complexity of a cloud strategy : What contributes to the complexity of a cloud strategy? How does tactical adoption of cloud services differ from a coordinated cloud strategy?
Which of the describes the entry : A company records an adjusting journal entry to record $10,000 depreciation expense. Which of the following describes the entry?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd