Salaries Paid to Shift Supervisors Are an Example of a

question 152

Multiple Choice

Salaries paid to shift supervisors are an example of a

• A)step-variable cost.
• B)mixed cost.
• C)step-fixed cost.
• D)variable cost.

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Definitions:

Overapplied Overhead

A scenario in which the overhead cost assigned to manufacturing exceeds the actual overhead expenses incurred.

Underapplied Overhead

Occurs when the allocated manufacturing overhead cost is less than the actual overhead cost incurred.

Factory Overhead Account

An accounting category that aggregates all indirect costs associated with the manufacture of goods, such as utilities, maintenance, and salaries of non-direct labor.

Predetermined Overhead Rate

A rate calculated before the period begins, used to allocate overhead costs to products or services based on a certain activity base.