EFG Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Assembly Processing orders Inspection Total Cost Total Activity 61,200 machine-hours $ 1,282,140 $ 53,958 $ 181,350 2,040 orders 2,340 inspection-hours The company makes 1,100 units of product EG8 a year, requiring a total of 1,200 machine-hours, 131 orders, and 31 inspection-hours per year. The product's direct materials cost is $50.89 per unit and its direct labor cost is $20.56 per unit. The product sells for $113.30 per unit. According to the activity-based costing system, the product margin for product EG8 is: (Round your intermediate calculations and final answers to 2 decimal places.)
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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