Question

Is manufacturing overhead usually incurred uniformly throughout the operating cycle?

a. Yes
b. No

Answer 1

Manufacturing overhead is not incurred uniformly throughout the operating cycle. Instead, it is spread out over the entire production process.

Step-by-step explanation:

The manufacturing overhead is not usually incurred uniformly throughout the operating cycle. Manufacturing overhead refers to indirect costs that are not directly tied to the production of specific products. Instead, these costs, such as rent, utilities, and factory maintenance, are spread out over the entire production process.

For example, suppose a factory produces 100,000 units of a product over a month. The manufacturing overhead for that month is $10,000. The average manufacturing overhead per unit would be $0.10 ($10,000 divided by 100,000 units).

However, it's important to note that the level of manufacturing overhead incurred can vary depending on the specific activities and costs involved in the production process. Some activities may require more overhead costs than others, resulting in fluctuations in the overall manufacturing overhead incurred throughout the operating cycle.