A Company with Sales of $50,000,variable Costs of $35,000,and Fixed

question 156

True/False

A company with sales of $50,000,variable costs of $35,000,and fixed costs of $25,000 will earn a net income of $15,000.

---

Definitions:

Manufacturing Overhead

All manufacturing costs that are not direct materials or direct labor, including indirect costs such as maintenance and utilities.

Manufacturing Overhead

Manufacturing overhead includes all production costs other than direct labor and direct materials, such as maintenance, depreciation, and utilities.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company.

Overapplied

A situation in cost accounting where the applied manufacturing overhead cost is more than the actual overhead incurred.