Angle Max Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next year's expected costs and activities are shown below. Direct labor hours Machine hours Overhead costs Assembly 220,000 DLH 420,000 MH $420,000 Finishing 152,000 DLH 50, 400 MH $638,400 Assume that Angle Max Industries allocates overhead using a plantwide overhead rate based on machine hours. How much total overhead will be assigned to a product that requires 1 direct labor hour and 3.70 machine hours in the Assembly Department, and 4.50 direct labor hours and 0.3 machine hours in the Finishing Department?
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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Angle Max Industries produces a product which goes through two operations, Assembly and Finishing, before it is
ready to be shipped. Next year's expected costs and activities are shown below.
Direct labor hours
Machine hours.
Overhead costs.
Assembly
220,000 DLH
420,000 MH
$420,000
Finishing
152,000 DLH
50,400 MH
$638,400
Assume that Angle Max Industries allocates overhead using a plantwide overhead rate based on machine hours. How much total
overhead will be assigned to a product that requires 1 direct labor hour and 3.70 machine hours in the Assembly Department, and
4.50 direct labor hours and 0.3 machine hours in the Finishing Department?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F649593ab-9161-4d6b-9fb8-86ec88815ee7%2F2e8bfd39-6518-4fa7-9c12-d5d3c683b45a%2F7ks9cdp_processed.png&w=3840&q=75)
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