Using absorption costing, which of the following manufacturing costs are assigned to products?

Direct materials and direct labor.

1. Direct labor and variable manufacturing overhead.

2. Fixed manufacturing overhead, direct materials, and direct labor.

3. Variable manufacturing overhead, direct materials, and direct labor.

4. Variable manufacturing overhead, direct materials, direct labor, and fixed manufacturing overhead.

Question

Business

Matey

13 June, 13:11

Using absorption costing, which of the following manufacturing costs are assigned to products?

Direct materials and direct labor.

1. Direct labor and variable manufacturing overhead.

2. Fixed manufacturing overhead, direct materials, and direct labor.

3. Variable manufacturing overhead, direct materials, and direct labor.

4. Variable manufacturing overhead, direct materials, direct labor, and fixed manufacturing overhead.

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Answers (1)

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Yellow · Answer 1

4. Variable manufacturing overhead, direct materials, direct labor, and fixed manufacturing overhead.

Explanation:

Absorption costing method is also known as full costing. This means that we include all these in the product costs. Unlike variable costing which only adds variable costs throughout the statement and only at the end of the statement adds in the fixed costs.