A company produces pool pumps. Overhead costs have been identified as follows: Activity Pool Material handling Machine maintenance Setups Units produced Number of moves Machine hours Production runs Cost Cost Driver Number of moves Number of machine hours Number of production runs The company makes three models of pumps with the following activity demands: Economy 10,200 197 9,250 30 $ 75,982.50 108,300.00 85,000.00 Total Activity 495 36,100 68 Standard 20,300 131 21,400 11 Premium 3,500 167 5,450 27 Required: a. Calculate the activity rate for each activity. b. Determine the amount of indirect costs assigned to each of the products. Complete this question by entering your answers in the tabs below. Show less
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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