12) The Crowe Company provides the following standard cost data per unit of product: Direct material (3 gallons @ $4 per gallon) Direct labor (2 hours @ $11 per hour) $ 12 $ 22 During the period, the company produced and sold 22,000 units, incurring the following costs: Direct material Direct labor 68,000gallons 44,500hours @ $ @ $ 3.9per gallon 10.75per hour The direct material price variance was: A) $6800 unfavorable. B) $6600 favorable. C) $6600 unfavorable.ently classified as D) $6800 favorable.
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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