2. How many employees will be needed for production each month? How many will be regular, temporary full-time, and temporary part-time. How many new recruits are needed also every month?
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.
![Exercise 4-27
Irene Corporation manufactures three lines of decorative cabinets for
stereo and television sets. Skill is required of the workers and it is not easy to
hire persons qualified for the work. At the present time, there are 15 qualified
employees (all regular workers) available for this type of work and new
personnel are to be hired and trained for the busy first six months of 2021. Each
employee works approximately 150 hours a month and is paid the rate of P100
per hour.
Production plans based on anticipated sales demand, are given next page
in units for each of the three lines of cabinets.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe5cbe5a9-9fa5-4fe5-8684-af6fe6b37f9d%2Fc442ac95-6582-430f-bd76-07d8a824e615%2Fmcw1983_processed.jpeg&w=3840&q=75)
![product has been estimated as follows:
Georgian
French
Provincial
Florentine
January
February
March
300
200
450
50
320
520
80
430
April
May
June
520
80
450
100
640
560
130
950
600
150
The direct labor time required for one person to produce each unit of
Georgian
3 hours
French Provincial
5 hours
Florentine
6 hours
REOUIRED:
2. How many employees will be needed for production each month? How many
will be regular, temporary full-time, and temporary part-time. How many
new recruits are needed also every month?
Irene Corporation
Direct Labor Hours & Cost Budget
For the First Six Months of 2021
French
Provincial(5) Florentine(6) Georgian(3)
Units Hours Units Hours Units Hours Hours Costs
Total
Total
January
February
March
April
May
June](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe5cbe5a9-9fa5-4fe5-8684-af6fe6b37f9d%2Fc442ac95-6582-430f-bd76-07d8a824e615%2F4b8cm1_processed.jpeg&w=3840&q=75)
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