Hello, (Continued from an earlier email). Silverstone's production budget for July called for making 39,800 units of a single product. The firm's production standards allow one-half of a machine hour per unit produced. The fixed overhead budget for July was $35,024. Silverstone uses an absorption costing system. Actual activity and costs for July were: Units produced 36,754 Fixed overhead costs incurred $37,700 Calculate the fixed overhead volume variances for July. Do not round intermediate calculations. Fixed overhead volume variances: ??? thanks.
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.
Hello,
(Continued from an earlier email).
Silverstone's production budget for July called for making 39,800 units of a single product. The firm's production standards allow one-half of a machine hour per unit produced. The fixed
|
Units produced |
36,754 |
|
Fixed overhead costs incurred |
$37,700 |
Calculate the fixed overhead volume variances for July. Do not round intermediate calculations.
Fixed overhead volume variances: ???
thanks.
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