Activity Cost Pool Labour related Material requisition orders Parts management Board etching General factory Activity Cost Pool Labour related Purchase orders Parts management Board etching General factory Activity Measure Direct labour hours. Number of orders Number of part types Number of boards Machine-hours Activity Cost Pool Labour related Purchase orders Parts management Board etching General factory Total The activities during the year were distributed across the company's four products as follows: Product C Actual Activity 42,000 DLHs 10,580 1,400 orders 310 118 508 20,800 Product A $ 420 part types 2,100 boards 82,000 MHS $ 222,705 Estimated Overhead Cost $632,000 46,200 368,000 608,000 624,000 $ Product B 222,705 $ Required: Compute the amount of overhead cost applied to each product during the year. (Do not round intermediate calculations. 90 78 408 24,800 Applied Overhead Expected Activity 40,000 DLHS Product A 14,800 Product C 121,585 $ 159,204 121,585 $ 1,500 orders 2,000 boards 80,000 MHS 400 part types 159,204 Product B 8,080 450 123 1,080 20,800 Product D $ Product D 9,580 550 133 208 18,800 O
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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