BAR SIM Flashcards
(5 cards)
1
Q
Which of the following types of costs have to do with manufacturing products, whether directly or indirectly? (Product or Period)
A
PRODUCT COSTS
This could include factory workers, utilities and custodial staff, rent, that has to do with the facilities that create the product
2
Q
Would the salary of administrative staff or advertising staff be a product cost?
A
NO, PERIOD COST
They are not directly or indirectly involved with manufacturing products, so it’s a period cost.
3
Q
What does this equation calculate? Actual Labor Hours * Wage Rate
A
DIRECT LABOR
4
Q
Is the overhead rate calculated by dividing budgeted overhead by: 1) Budgeted Labor Hours or 2) Actual Labor Hours
A
BUDGETED LABOR HOURS
You can then use this rate to figure out the overhead applied
5
Q
A
