Activity Casting Assembly Inspecting Activity Cost Activity Base Machine hours Direct labor hours Number of inspections Number of setups Number of loads $286,230 225,000 45,730 Setup 45,440 Materials handling 38,270 Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity- pase usage quantities and units produced follow:
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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were obtained to estimate the amount of
by the two products. The estimated activity-
ties and units produced follow:
t
Activity Rate
SA
S
45,440
38,270
SA
S
Number of setups
Number of loads
Entry Dining
5,230 4,640
4,500 6,750
2,040
650
260
700
Fixtures
10,400 5,200 15,600
ctivity rate for each activity. If required,
the nearest dollar.
60
190
Total
9,870
11,250
2,690
320
890
per machine hour
tA
per direct labor hour
per inspection
per setup
per load
es in (a) to determine the total and per-unit
ed with each product. Round the per unit
est cent.
Total Activity Cost
Activity Cost Per Unit
SA
AA"
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Calculation of activity rate and total activity cost and other requirement are as follows
Step by step
Solved in 2 steps with 3 images
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