9. PENNSYLVANIA makes engine additives. Standard costs for a gallon of its major procuct follow, along with actual results for March. Materials, 5 pounds at P6 per pound Direct labor at P12 per hour Variable overhead at P6 per DLH Total standard variable cost P30 24 12 P66 Actual results for March: A. Production was 1,200 gallons. Material purchases were 3,200 pounds at P5.90 per pound. The company used 6,200 pounds of materials in procuction. D. В. C. Direct laborers worked 2,250 hours at P12.10, earning P27,225. Variable overhead was P13,800. E. REQUIREMENT: Compute all variable cost variances.
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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