Scenario II: Goodmark Company produces two types of birthday cards: scented and regular. Goodmark uses the Overhead Control account to accumulate both actual and applied overhead. The company has thc following data for the past Actual overhead $760,000 Sales $3,500,000 Matertals used $1,10n,000 Applied Overhaad (In each account): Work in process $72,000 Finished goods 210,000 Cost of gouds sold 432,000 Required: 1. Calculate the overhead varlance tor the year and label it under- or overapplied. Overhead varlance: 2. Assuming the variance is not materlal, the following clasing entry would be made: Debit v for $ and credit v for $ 3. If the overhead variance is material, indicate how much of the variance would be v to cach of the following accounts (if an amount is zero, enter "0"): Work in process Materlals Cnst of gonds told Sales revenue Finished goods
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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