Which of the Following Best Describes Costs Assigned to the Product

question 83

Multiple Choice

Which of the following best describes costs assigned to the product under the variable costing method?
Direct labor (DL)
Direct materials (DM)
Variable selling and administrative (VSA)
Variable manufacturing overhead (VOH)
Fixed selling and administrative (FSA)
Fixed manufacturing overhead (FOH)

• A)DL,DM,VSA,and VOH.
• B)DL,DM,and VOH.
• C)DL,DM,VOH,and FOH.
• D)DL and DM.
• E)DL,DM,FSA,and FOH.

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Definitions:

Direct Labor-Hours

The measure of the amount of time workers spend directly producing goods or services, important in calculating labor expenses and production efficiency.

Fixed Manufacturing Overhead

Represents the set of costs that are required to operate a manufacturing facility, which do not vary with the volume of production.

Job-Order Costing System

A cost accounting system that assigns costs to specific production batches or jobs.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, based on a predetermined activity level.