20 Pope Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs for the next two quarters are given below: First Qtr 288,000 S 160,000 240,000 2$ Second Qtr 140,000 80,000 220,000 440,000 Direct materials $ Direct labor Manufacturing overhead Total manufacturing costs 688,000 $ Number of units to be produced Estimated unit product cost 160,000 $ 4.30 $ 80,000 5.50 Based on the information given, estimate the fixed manufacturing overhead cost per quarter. A. $ $ 648,000 192,000 200,000 220,000 E. None of the above B. С. $ D. $
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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