Activity-based costing:factory overhead costs The total factory overhead for Cypress Marine Company is budgeted for the year at $810,150, divided into four activities: fabrication, $378,000, assembly, $150,000, setup, $153,900, and inspection, $128,250. Cypress Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows: Assembly 18,750 dlh 6,250 25,000 dlh 20,250 27,000 dlh Each product is budgeted for 3,500 units of production for the year. a. Determine the activity rates for each activity. 14 ✔ per dih 6 per dih Speedboat Bass boat Fabrication Assembly Setup Inspection Fabrication Speedboats $ Bass Boats $ $ 6,750 dlh $ 380 per setup 190✔per inspection b. Determine the activity-based factory overhead per unit for each product. Round all per unit answers to the nearest dollar. Setup 49 setups 356 405 setups 67 X per unit 150 X per unit Inspection 84 inspections 591 675 inspections
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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