EBK COST ACCOUNTING
EBK COST ACCOUNTING
15th Edition
ISBN: 9780133812763
Author: Rajan
Publisher: VST
Question
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Chapter 5, Problem 5.35P

1.

To determine

Job order costing:

Job order costing is one of the methods of costing to find out the cost of an individual job or the cost of batches of jobs in the manufacturing firm where different products or unique products are manufactured simultaneously. It is also known as job costing. Here the word job refers to a single or several units of different product or service.

Activity Based Costing:

Activity based costing is one of the methods of costing to identify the activities performed to manufacture a product and to allocate the overhead cost of resources or indirect cost to the related products.

Simple Costing System:

Simple costing system is one of method of costing to estimate the amount of allocating the overhead cost of resources to the associated product based on the total units manufacture of that product, machine and labor hour consumed to manufacture that product.

To calculate: The budgeted cost per service for X-rays, Ultrasounds, CT scans, and MRI using direct technician labor cost as the allocation base.

2.

To determine

To calculate: The budgeted cost per service of X-rays, Ultrasounds, CT-Scan and MRI if RRC allocated overhead cost using activity-based costing.

3.

To determine

To explain: The manner in which disaggregation of information is helpful to RRC’s intention to continuously improve its services.

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