12 & 13 are based on the following information. The following cost data relates to Bruno Company for the year 2008: Estimated manufacturing overhead costs $240,000 Estimated direct labour cost 300,000 Estimated direct labour hours 30,000 Actual direct labour cost 315,000 Actual direct labour hours 33,000 Allocation base: Direct labour cost Other expenses (Actual): Factory depreciation on equipment $65,300 Factory rent 51,000 Factory utilities 28,900 Factory property taxes 26,000 Indirect labour 23,800 Indirect materials 32,000 Sales commissions 52,500 12. Manufacturing overhead allocated for 2008 is: (A) $252,000 (B) $450,450 (C) $210,000 (D) $220,500 13. The entry to dispose of the manufacturing overhead variance is: (A) Manufacturing Overhead Cost of Goods Sold $25,000 $25,000 (B) Cost of Goods Sold Manufacturing Overhead $25,000 $25,000 (C) Manufacturing Overhead Cost of Goods Sold $17,000 $17,000 (D) Cost of Goods Sold Manufacturing Overhead $17,000 $17,000
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Questions 12 & 13 are based on the following information.
The following cost data relates to Bruno Company for the year 2008:
Estimated
Estimated direct labour cost 300,000
Estimated direct labour hours 30,000
Actual direct labour cost 315,000
Actual direct labour hours 33,000
Allocation base: Direct labour cost
Other expenses (Actual):
Factory
Factory rent 51,000
Factory utilities 28,900
Factory property taxes 26,000
Indirect labour 23,800
Indirect materials 32,000
Sales commissions 52,500
12. Manufacturing overhead allocated for 2008 is:
(A) $252,000
(B) $450,450
(C) $210,000
(D) $220,500
13. The entry to dispose of the manufacturing overhead variance is:
|
(A) |
Manufacturing Overhead Cost of Goods Sold |
$25,000 |
$25,000 |
|
(B) |
Cost of Goods Sold Manufacturing Overhead |
$25,000 |
$25,000 |
|
(C) |
Manufacturing Overhead Cost of Goods Sold |
$17,000 |
$17,000 |
|
(D) |
Cost of Goods Sold Manufacturing Overhead |
$17,000 |
$17,000 |
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