17. This is Cost Accounting. Explain briefly and answer. The following direct labor information pertains to the manufacture of Part J35: Number of hours required to make a part 2.5 DLH Number of Direct workers 75 Number of total productive hours per week 3000 Weekly wages per worker P1,000 Laborers’ fringe benefits treated as direct labor costs 25% of wages What is the standard direct labor cost per unit of Part J35? 62,500 78,125 41,670 84,125 74,350
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.
17. This is Cost Accounting. Explain briefly and answer.
The following direct labor information pertains to the manufacture of Part J35:
Number of hours required to make a part 2.5 DLH
Number of Direct workers 75
Number of total productive hours per week 3000
Weekly wages per worker P1,000
Laborers’
What is the standard direct labor cost per unit of Part J35?
- 62,500
- 78,125
- 41,670
- 84,125
- 74,350
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