Activity cost calculations: Set up cost Production scheduling cost Production engineering cost Supervision cost Machine operating cost include the formula here a 288,000/1000 60,000/400 180,000/60 56,000/2000 |168,000/12,000 S 288 $ 150 3,000 25 14 b Direct materials $ 7,000 Direct labor Manufacturing overhead cost Setup hours Production scheduling Production engineering Supervision Machine Maintenance 1,000 5*288 1*150 3 *3000 1,440 150 9,000 (5+35)*28 1,120 |(25+5)*14 420 Total Job 845 cost 20,130 Direct material Direct labor cost Overhead cost Total Job 845 cost 7,000 Total activities cost 752,000 1,000 Total machine hours used-12,000 1,880 752,000/12,000 $62.67 $ C 30 62.67 9,880 Total Job 845 cost
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.
I could use some help answering this with the attached spreadsheet. I finished parts a through c:
Glassman Company acculated the following data for 2019:
| Milling Department manufacturing |
$484,000 |
| Finishing Department manufacturing overhead | $260,000 |
| Machine hours used | |
| Milling Department | 10,000 |
| Finishing Deparment | 2000 |
| Labor hours used | |
| Milling Department | 1000 |
| Finishing Department | 1000 |
Assume that manufacturing overhead for Glassman Company above consisted of the following activities and costs:
| Setup (1000 setup hours) | $288,000 |
| Production scheduling (400 batches) | $60,000 |
| Production engineering (60 change orders) | $180,000 |
| Supervision (2000 direct labor hours) | $56,000 |
| Machine maintenance (12,000 machine hours) | $168,000 |
| Total activity costs | $752,000 |
The following additional data were provided for Job 845:
| Direct materials costs | $7000 |
| Direct labor cost (5 milling direct labor hours; 35 finishing direct labor house) | $1000 |
| Setup hours | 5 hours |
| Production scheduling | 1 batch |
| Machine hours used (25 milling machine hours; 5 finishing machine hours) | 30 hours |
| Product engineering | 3 change orders |
Problems:
d) Calculate the cost of Job 845 using a machine hour departmental overhead rate for the Milling Department and a direct labor hour overhead rate for the Finishing Department.
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