A company uses the following standard costs to produce a single unit of output. Direct materials Direct labor 7 pounds at $0.80 per pound = 0.2 hour at $10.00 per hour = 0.2 hour at $3.20 per hour = Manufacturing overhead. During the latest month, the company purchased and used 66,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $17,860 based on 1,880 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $3,400 and fixed manufacturing overhead incurred was $13,000. Based on this information, the total direct materials variance for the month was: Multiple Choice $13,200 unfavorable $10,000 favorable $3,200 favorable $ 5.60 $ 2.00 $ 0.64 $10,000 unfavorable
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.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
