Your Company makes and sells electric fans. Each fan regularly sells for $42. Your Company is now selling 120.000 fans through regular channels each period. The following cost data per fan is based on a full capacity of 150.000 fans produced each period. Direct materials.. $12 Direct labor. $17 Manufacturing overhead (60% variable and 40% unavoidable fixed). $40 A special order has been received for a sale of 25.000 fans to an overseas customer. The only selling costs that would be incurred on this order would be $4 per fan for shipping. What is the minimum selling price per fan (breakeven) in negotiating a price for this special order OA S29 OB. $45 OC. 557 O D. $49 OE. S53
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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