2. Bartasil Ltd manufacturers 'kityos. The director budget for overhead expenditure of $25 000 each month. This figure is based on an output of 5000 kityos. The overhead recovered absorption rate is S5.00 per unit. The following information is given below: Actual output Actual expenditure on Unit overhead January 5 000 24 000 February 4 900 25 000 March 5 100 25 000 April 5 000 25 100 May 5 100 28 050 June 5 100 26 000 Required: Calculate the over or under recovery rate for each of the six months.
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.
bartasil Ltd manufacturers. kitieos. the director badger for the
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