The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhead information: Setups Inspections Assembly (dlh) Small Lamps - 4,000 units 3,100 9,150 40,400 Desk Lamps - 11,000 units 6,200 15,250 40,400 Activity Pool Activity Base Budgeted Amount Setups 9,300 $95,790 Inspections 24,400 $148,840 Assembly (dlh) 70,700 $282,800 Calculate the overhead per unit to be charged to small lamps.
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.
The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhead information:
| Setups | Inspections | Assembly (dlh) | |
| Small Lamps - 4,000 units | 3,100 | 9,150 | 40,400 |
| Desk Lamps - 11,000 units | 6,200 | 15,250 | 40,400 |
| Activity Pool | Activity Base | Budgeted Amount |
| Setups | 9,300 | $95,790 |
| Inspections | 24,400 | $148,840 |
| Assembly (dlh) | 70,700 | $282,800 |
Calculate the overhead per unit to be charged to small lamps.
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