ECONOMICS

Detailed explanation-1: -Normal costing allows team members to accurately set goals and meet specific targets for production rates and costs, as they have a per-unit overhead price that they can aim to meet. As you conduct actual costing calculations after producing products, it is more difficult to use in goal-setting.

Detailed explanation-2: -Answer and Explanation: To record the application of manufacturing overhead to work in process, a credit must be made to manufacturing overhead to reduce the balance in the account and move it into production with a debit to work in process. The work in process account is increased with a debit.

Detailed explanation-3: -To calculate manufacturing overhead, you need to add all the indirect factory-related expenses incurred in manufacturing a product. This includes the costs of indirect materials, indirect labor, machine repairs, depreciation, factory supplies, insurance, electricity and more.

Detailed explanation-4: -Usually manufacturing overhead costs include depreciation of equipment, salary and wages paid to factory personnel and electricity used to operate the equipment.