1. Compute the actual and budgeted manufacturing overhead rates for 2020 2. During March, the job-cost record for Job 626 contained the following information Direct materials used $55,000 Direct manufacturing labor costs $45,000 Compute the cost of Job 626 using (a) actual costing and (b) normal costing 3. At the end of 2020, compute the under- or overallocated manufacturing overhead under normal costing. Why is there no under- or overallocated overhead under actual costing? 4. Why might managers at Dakota Products prefer to use normal costing? Print Done
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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Dakota Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Dakota allocates manufacturing overhead
costs using direct manufacturing labor costs. Dakota provides the following information
(Click the icon to view the information.)
Read the requirements
Requirement 1. Compute the actual and budgeted manufacturing overhead rates for 2020 (Enter your answer as a number [not as a percentage] rounded to two decimal places, XXX)
Actual manufacturing overhead rate =
1.95
Budgeted manufacturing overhead rate
1.7
=
Requirements
BES
4
1. Compute the actual and budgeted manufacturing overhead rates for 2020
2. During March, the job-cost record for Job 626 contained the following information
Direct materials used
$55,000
Direct manufacturing labor costs
$45,000
Compute the cost of Job 626 using (a) actual costing and (b) normal costing
3. At the end of 2020, compute the under- or overallocated manufacturing overhead
under normal costing Why is there no under- or overallocated overhead under
actual costing?
4. Why might managers at Dakota Products prefer to use normal costing?
Print
Done
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