Exam1REVIEW - Accounting 2302 - Summer 2010 Exam 1 Review...

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Accounting 2302 - Summer 2010 Exam 1 Review The controller occupies which type of position (Line or Staff)? According to the theory of constraints, to increase production output would benefit the most by concentrating improvement efforts on the slowest work station. Prime Cost = Direct materials + Direct Labor Conversion Cost = Direct Labor + Manufacturing Overhead Manufacturing overhead can be fixed, variable, or a combination. The three basic elements of manufacturing cost are direct materials, direct labor, and Manufacturing overhead. Cost of goods manufactured will usually include some costs incurred during the prior period as well as costs incurred during the current period. Indirect costs are costs that are impossible or very difficult to trace directly to a product. Define Opportunity Costs. ============= The following costs were incurred in July: Direct materials = $10 Direct labor = $9 Manufacturing overhead = $11 Selling expenses = $8 Administrative expenses = $9 What are conversion costs for July? What are prime costs for July? ================ From the list below, identify which are product costs and period costs. Which costs are included in Manufacturing Overhead? Direct Materials Depreciation on factory equipment Depreciation on administrative building Factory custodian salary Direct Labor Utilities for factory Selling Expenses Production Supervisor Salary Administrative Expenses &
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This note was uploaded on 02/28/2012 for the course ACCT 2361 taught by Professor Severance during the Spring '08 term at Texas State.

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Exam1REVIEW - Accounting 2302 - Summer 2010 Exam 1 Review...

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