A company uses job-order costing system with a pre-determined overhead rate based on the machine hours. The total machine hours are 64,000 hours. The variable manufacturing overhead per machine hour is $6 and the estimated total fixed manufacturing overheads cost is $704,000. The additional information for a job order “JOCS" is summarized as follows: Description Number of units Total machine hours Direct materials Direct labor costs 20 80 $1,400 $2,800 The company marks up it unit product costs by 25%. With the provided information, compute the selling price of the unit in JOCS. a. $347.50 b. $278 с. $295.94 d. $267.81
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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