Managerial Accounting

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Discussion Question 1:

Can services be delivered by means of process operations? Support your answer with an example.

Discussion Question 2

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Please define each of the following terms –

direct manufacturing item,

indirect manufacturing item,

variable manufacturing overhead,

fixed manufacturing overhead,

predetermined manufacturing overhead,

predetermined manufacturing overhead rate, and

the base for predetermined manufacturing overhead rate.

Then discuss if predetermined manufacturing overhead rate depends on production level. Provide examples to clarify and support your argument.   

Period manufacturing operations of a company requires 5,000 pounds in direct materials and 3,000 hours of direct labor. Unit direct material cost is $100 per pound, and unit direct labor cost is $80 per hour. Estimated overhead is $50 per each hour of direct labor. Provide the period manufacturing costs statement.  

 
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