a. Determine the standard cost per dining room table. If required, round your answer to two decimal places. $fill in the blank per dining room table
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.
Standard product cost
Santa Clara Furniture Company manufactures designer home furniture. Santa Clara uses a
| Direct labor: | standard rate | $23.00 per hr. |
| standard time per unit | 4.0 hrs. | |
| Direct materials (oak): | standard price | $14.00 per bd. ft. |
| standard quantity | 25 bd. ft. | |
| Variable factory overhead: | standard rate | $4.30 per direct labor hr. |
| Fixed factory overhead: | standard rate | $2.40 per direct labor hr. |
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
a. Determine the standard cost per dining room table. If required, round your answer to two decimal places.
$fill in the blank per dining room table
b. A standard cost system provides Rosa Furniture management a cost control tool using the principle of management by exception. Using this principle, major cost deviations from standards can be investigated and corrected.
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