In Terms of Cost Behavior,supervisory Salaries and Direct Labor Are

question 66

Multiple Choice

In terms of cost behavior,supervisory salaries and direct labor are classified as

• A)fixed and variable,respectively.
• B)variable.
• C)fixed.
• D)mixed and fixed,respectively.

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Definitions:

Machine Hours

A measure of the total time a machine operates, often used as a basis for allocating manufacturing overhead costs in production.

Overapplied Overhead

A situation where the allocated manufacturing overhead cost exceeds the actual manufacturing overhead cost incurred.

Underapplied Overhead

Occurs when the allocated factory overhead costs are less than the actual overhead costs incurred.

Overhead Applied

The process of allocating estimated overhead costs to specific jobs or activities based on a predetermined rate.