Crane Corp. has collected the following data concerning its maintenance costs for the past 6 months. Units Produced Total Maintenance Costs July 19,900 $44,732 August 35,552 53,328 September 39,996 61,105 October 24,442 46,388 November 44,440 82,769 December 42,218 68,882 Compute the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places, e.g. 2.25.) Variable cost per unit $enter the variable cost per unit in dollars rounded to 2 decimal places Compute the fixed costs using the high-low method for this mixed cost. Total fixed costs $enter the fixed costs in dollars
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.
Crane Corp. has collected the following data concerning its maintenance costs for the past 6 months.
|
Units Produced
|
Total Maintenance Costs
|
|||||||
|---|---|---|---|---|---|---|---|---|
|
July
|
19,900 | $44,732 | ||||||
|
August
|
35,552 | 53,328 | ||||||
|
September
|
39,996 | 61,105 | ||||||
|
October
|
24,442 | 46,388 | ||||||
|
November
|
44,440 | 82,769 | ||||||
|
December
|
42,218 | 68,882 |
| Variable cost per unit |
$enter the variable cost per unit in dollars rounded to 2 decimal places
|
Compute the fixed costs using the high-low method for this mixed cost.
| Total fixed costs |
$enter the fixed costs in dollars
|
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