Match Each Phrase That Follows with the Term (A-H) It

question 121

Multiple Choice

Match each phrase that follows with the term (a-h) it describes.
-Costs incurred in a previous process that are carried forward as part of the product's cost when it moves to the next department

• A)Direct labor and factory overhead
• B)Direct labor and direct materials
• C)Transferred-in costs
• D)Equivalent units
• E)Process costing
• F)Job order costing
• G)First-in, first-out method
• H)Cost of production report

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Definitions:

Variable Manufacturing Overhead Standards

Pre-set rates used to allocate variable overhead costs to individual units of production based on expected usage criteria, such as labor hours.

Variable Overhead Efficiency Variance

A measure in cost accounting showing the difference between the actual variable overhead incurred and the expected (or standard) variable overhead based on the actual hours worked.

Variable Overhead Standards

Predetermined rates used to control and budget for the variable portion of manufacturing overhead costs, adjusting with production volumes.

Direct Labor-hours

The cumulative hours spent by workers who are primarily engaged in creating products or providing services.