Required: A schedule showing efficiency ratio, employee earnings, unit labor cost, unit overhead cost, and conversion cost per unit. , assuming a 100 percent bonus plan with a base wage of $4 per hour and a standard production rate of 10 units per hour overhead is 2.80 per hour (b). Calculate earnings of worker Mehmood and Saeed under straight piece rate system and Taylor's Differential piece rate system from the following particulars. Normal rate per hour =Rs, 18.00 Standard time per unit = 10 seconds Worker Mehmood produced 2700 units per day and worker Saeed produced 3200 units per day, Per day = 8 hours shift (c). Find the Prime Cost, conversion Cost, Cost of production, total Cost and profit from the following:
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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