Answer:
Under variable costing, fixed manufacturing overhead is expensed as period expenses.
Explanation:
Option <em>A</em> is wrong because under absorption costing, fixed manufacturing overhead is expensed as product expenses.
Option <em>B</em> is incorrect because Under variable costing, direct materials and direct labor are expensed as product expenses.
Option <em>C</em> is false because Fixed manufacturing overhead costs are treated as product cost under absorption costing and period cost under variable costing.
Therefore, option E is correct as fixed manufacturing overhead is expensed as period expenses under variable costing.
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Answer:
$44,268
Explanation:
Calculation for What is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours
First step is to calculate the Plant-wide Overhead Rate using this formula
Plant-wide Overhead Rate = Total Overhead / Total Direct Labor Hours
Let plug in the formula
Plant-wide Overhead Rate = $632,400 / 4,800 hours
Plant-wide Overhead Rate = $131.75
Now let calculate the total manufacturing overhead for the current product order
Using this formula
Current product order Total Manufacturing Overhead = Plant-wide Overhead Rate * Direct Labor Hours
Let plug in the formula
Current product order Total Manufacturing overhead= $131.75 *336 hours
Current product order Total Manufacturing overhead= $44,268
Therefore the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours will be $44,268
<span>Money provides four key functions for an economy,
1. medium of exchange
2. unit of account
3. store of value
4. standard of deferred payment
"when money specifies the value of something", it is performing a function as a medium of exchange, which is the primary function of money. Medium of exchange means the money is used to conduct transactions.
people use money to buy and sell goods.</span>
