Glannitti Corporation bases Its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for th Estimated machine-hours 72,700 Estimated variable manufacturing overhead Estimated total fixed manufacturing overhead $ 3.30 per machine-hour $838,740 The predetermined overhead rate for the recently completed year was closest to:
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.
Giannitti Corporation bases its predetermined
| Estimated machine-hours | 72,700 | ||
| Estimated variable manufacturing overhead | $ | 3.30 | per machine-hour |
| Estimated total fixed manufacturing overhead | $ | 838,740 | |
The predetermined overhead rate for the recently completed year was closest to:
Sargent Corporation applies overhead cost to jobs on the basis of 80% of direct labor cost. If Job 210 shows $20,560 of
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