Trimming Molding 52,000 DLH 30,500 MH $732,000 48,000 DLH 3,600 MH $592,000 Direct labor hours Machine hours Overhead costs Data for two special-order parts to be manufactured by the company in this year follow: Part A27C Part X82B Number of units 9,800 units 54,500 units Machine hours 5,100 MH 2,600 MH Molding Trimming Direct labor hours Molding Trimming 1,020 MH 650 MH 2,150 DLH 3,500 DLH 5,500 DLH 700 DLH Required: 1. Compute a departmental overhead rate for the molding department based on machine hours and a department overhead rate for the trimming department based on direct labor hours.
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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