North Street Corporation manufactures two models of motorized go - carts, a standard and a deluxe model. The following activity and cost information has been compiled: Number of Number of Number of Direct Labor Hours Product Setups Components Standard 16 7 730 Deluxe 34 19 490 Overhead costs $16,000 $24,960 Number of setups and number of components are identified as activity – cost drivers for overhead. Assuming an activity – based costing system is used, what is the total amount of overhead cost assigned to the standard model? (Do not round interim calculations. Round the final answer to the nearest whole dollar.) O A. $17,600 B. $11,840 O C. $29,120 O D. $20,480
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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