What are the phases of a manufacturing process?
UNIT 4: MANUFACTURING PROCESSES
- -BOILER.
- -MANUAL COLD SHAPING.
- -PRINTING.
- -EXTRUSION.
- -WROUGHT.
- -FOUNDRY.
- -INJECTION.
- -LAMINATE.
What is a factory production process?
When a raw material arrives at a factory, it undergoes various changes until it becomes a product. These stages constitute the manufacturing process.
What is the manufacturing company?
WHAT IS A MANUFACTURING COMPANY: They are companies that are dedicated to production, the result of their activity are products transforming raw materials in the production process.
What are the manufacturing objectives?
They represent those disbursements or expenses incurred in the production process, other than direct material and direct labor, which cannot be applied directly and attributed to each production unit…
What does factory load include?
The manufacturing load are all those costs that a certain production center must incur in order to achieve its previously agreed objectives. Direct labor, as well as the direct material itself, are not considered factory load, since they cannot be attributed to certain production units.
What is factory load?
The Real Manufacturing Load is the accumulation of all the indirect costs incurred, which includes indirect raw material, indirect labor and Other Indirect Costs, which will be allocated among the different production orders.
What is the apportionment of factory load?
It consists of distributing and accumulating indirect charges primarily among existing production and service centers.
What are manufacturing costs?
Manufacturing and non-manufacturing costs: The manufacturing cost is that of production and serves to determine the value of the production of finished products, those that are in the process of transformation and those sold, it is made up of three elements: raw material, wages and salaries and other production expenses or …
What is the term of sub and over application of factory load?
Page 1 of 2 It is the difference that occurs at the end of a period of costs when the costs applied are different from the real costs because predetermined quotas or estimated quotas of application of MANUFACTURING LOAD are being used.
What is envelope and sub application?
Then, it is understood by over application to the decrease in the cost of sales. and sub application to the increase in cost of sales.
What is Overapplication and Underapplication?
In the over-application of costs, their results are considered a favorable difference, since the products will be marketed at higher values than those actually used, while in the under-application of costs, the differences are unfavorable for the company. , since, the…
What is Overapplication?
Situation experienced when indirect production costs have been applied to products that are lower/higher than those actually incurred.
What are Underapplied Indirect Costs?
Overapplied Indirect Costs occur when the costs actually incurred were lower than those applied, that is, the variation was favorable. On the other hand, the Underapplied Indirect Costs are when the actual indirect costs are greater than those applied, that is, the variation was unfavorable.
What is a Subapplied CIF?
The Underapplied CIF: originate a Loss or Increase in Costs. They exist when the apportioned amount of indirect costs (CIFA) is less than the actual amount. Overapplied Indirect Costs (CIF). Overapplied CIFs: originate a Gain or Cost Reduction.
What is the over-allocation of manufacturing overhead?
ALLOCATION OF INDIRECT MANUFACTURING COSTS These are the costs that we allocate to production as products are made, using a predetermined rate. Based on the cost of direct labor hours: Budgeted Direct Labor Hours Cost.
How are fixed costs distributed?
A simple way to distribute the company’s fixed costs between the unit cost of each product is: Correctly calculate the amount of all your annual fixed costs. Correctly calculates the amount of variable costs associated with each product (raw materials, handling, distribution, waste…)
What are the indirect manufacturing charges?
Indirect manufacturing costs are those that come from activities that are not directly involved in the production or manufacturing chain.