Fine Company uses a job order costing system. The following information pertains to the current period: Estimated manufacturing overhead at the beginning of the period $440,000 Actual manufacturing overhead incurred during the period $400,000 Manufacturing overhead underapplied $16,000 The predetermined overhead rate is $20 per direct labor hour. Using the above information, how many direct labor hours were worked during the current period?
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.
Fine Company uses a
information pertains to the current period:
Estimated manufacturing
period $440,000
Actual manufacturing overhead incurred during the period
$400,000
Manufacturing overhead underapplied
$16,000
The predetermined overhead rate is $20 per direct labor
hour.
Using the above information, how many direct labor hours
were worked during the current period?
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