to the two products are presented here: Annual production in units Direct material costs Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours Number of production runs Inspection hours Machining costs Setup costs Inspection costs Coffee table 50,000 150,000 50,000 2,500 25,000 Total manufacturing overhead costs are as follows: RM 375,000 120,000 105,000 50 1,000 Communicator table 100,000 300,000 100,000 5,000 50,000 50 500 a. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. h Compute the manufacturing cost per unit for each product
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.
Step by step
Solved in 4 steps
