You have been given the following information about the production of Cynthia Co., and are asked to provide the factory manager with information for a meeting with the vice president of operations. Standard Cost Card Direct materials (5 pounds at $5 per pound) $25.00 Direct labor (0.9 hours at $10) 9.00 Variable overhead (0.9 hours at $3 per hour) 2.70 Fixed overhead (0.9 hours at $8 per hour) 7.20 $43.90 The following is a variance report for the most recent period of operations. Variances Costs Total Standard Cost Price Quantity Direct materials $407,500 $8,342 F $9,600 U Direct labor 146,700 6,132 U 6,600 U How many actual direct labor hours were worked during the period? Actual direct labor hours enter a number of hours hours What was the actual rate paid per direct labor hour? (Round answer to 2 decimal places, e.g. 1.25.) Actual rate paid per direct labor hour $enter the actual rate paid per direct labor hour in dollars rounded to 2 decimal places /hr
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.
You have been given the following information about the production of Cynthia Co., and are asked to provide the factory manager with information for a meeting with the vice president of operations.
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|---|---|---|---|
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Direct materials (5 pounds at $5 per pound)
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$25.00 | ||
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Direct labor (0.9 hours at $10)
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9.00 | ||
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Variable overhead (0.9 hours at $3 per hour)
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2.70 | ||
|
Fixed overhead (0.9 hours at $8 per hour)
|
7.20 | ||
| $43.90 |
The following is a variance report for the most recent period of operations.
|
Variances
|
|||||||||
|---|---|---|---|---|---|---|---|---|---|
|
Costs
|
Total Standard Cost
|
Price
|
Quantity
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||||||
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Direct materials
|
$407,500 | $8,342 | F | $9,600 | U | ||||
|
Direct labor
|
146,700 | 6,132 | U | 6,600 | U |
How many actual direct labor hours were worked during the period?
| Actual direct labor hours |
enter a number of hours
|
hours |
What was the actual rate paid per direct labor hour? (Round answer to 2 decimal places, e.g. 1.25.)
| Actual rate paid per direct labor hour |
$enter the actual rate paid per direct labor hour in dollars rounded to 2 decimal places
|
/hr |
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