Which of the following cost items is not allocable as joint costs when a single manufacturing process produces several main products and several by-products?
A)Direct materials.
B)Variable overhead.
C)Direct labor.
D)Fixed overheaD.
E)Freight-out.

Question

Quizplus · Accepted Answer

Freight-out is not a cost related to the joint manufacturing process and should be allocated separately to the specific products it relates to. Direct materials, direct labor, variable overhead, and fixed overhead are all costs that can be allocated as joint costs in a manufacturing process producing multiple products.

Which of the Following Cost Items Is Not Allocable as Joint