Acme Inc. has the following information available: Actual price paid for material $1.00 Standard price for material $0.90 Actual quantity purchased and used in production 100 Standard quantity for units produced 90 Actual labor rate per hour $15 Standard labor rate per hour $14 Actual hours 200 Standard hours for units produced 190 NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For the variance conditions, your answer is either "F” (for Favorable) or "U” (for Unfavorable) - capital letter and no quotes. Complete the following table of variances and their conditions: Variance Variance Amount Favorable (F) or Unfavorable (U) Material Price ? ? Material Quantity ? ? Total DM Cost Variance ? ? Labor Rate ? ? Labor Efficiency ? ? Total DL Cost Variance ? ?
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.
5. Acme Inc. has the following information available:
| Actual price paid for material | $1.00 |
| Standard price for material | $0.90 |
| Actual quantity purchased and used in production | 100 |
| Standard quantity for units produced | 90 |
| Actual labor rate per hour | $15 |
| Standard labor rate per hour | $14 |
| Actual hours | 200 |
| Standard hours for units produced | 190 |
NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For the variance conditions, your answer is either "F” (for Favorable) or "U” (for Unfavorable) - capital letter and no quotes.
Complete the following table of variances and their conditions:
| Variance | Variance Amount | Favorable (F) or Unfavorable (U) |
|
Material Price |
? |
? |
|
Material Quantity |
? |
? |
|
Total DM Cost Variance |
? |
? |
|
Labor Rate |
? |
? |
|
Labor Efficiency |
? |
? |
|
Total DL Cost Variance |
? |
? |
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