Chapter 8 Accounting for Factory Overhead The following information relates to Donna Corporation for the last year. Donna direct labor hours as an overhead base. Estimated direct labor hours Estimated manufacturing overhead costs "Actual manufacturing overhead costs Applied manufacturing ovérhead costs 10. What was the actual number of direct labor hours worked last year at Donna? 136,000 hours P 108,800 108,480 110,000 86,784 hours 168,480 X0. = 26,784- a. b. 88,320 hours C. 135,600 hours d. 137,500 hours
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.
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