Assume a company started and completed numerous jobs during July—one of which was Job Z. The company uses two departmental predetermined overhead rates. The rate in the Machining Department is based on machine-hours and the rate in the Assembly Department is based on direct labor-hours. The following additional information from the month of July is available for the company as a whole and for Jobs Z: Machining Assembly Estimated total fixed manufacturing overhead $ 48,000 $ 30,000 Estimated variable manufacturing overhead per machine-hour $ 1.50 Estimated variable manufacturing overhead per direct labor-hour $ 2.00 Estimated total machine-hours to be used 12,000 Estimated total direct labor hours to be worked 10,000 Job Z Machining Assembly Direct materials $ 1,850 $ 1,900 Direct labor $ 1,400 $ 2,100 Machine-hours 40 Direct labor-hours 60 What is the total job cost for Job Z?
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.
Assume a company started and completed numerous jobs during July—one of which was Job Z. The company uses two departmental predetermined
| Machining | Assembly | |
|---|---|---|
| Estimated total fixed manufacturing overhead | $ 48,000 | $ 30,000 |
| Estimated variable manufacturing overhead per machine-hour | $ 1.50 | |
| Estimated variable manufacturing overhead per direct labor-hour | $ 2.00 | |
| Estimated total machine-hours to be used | 12,000 | |
| Estimated total direct labor hours to be worked | 10,000 |
| Job Z | Machining | Assembly |
|---|---|---|
| Direct materials | $ 1,850 | $ 1,900 |
| Direct labor | $ 1,400 | $ 2,100 |
| Machine-hours | 40 | |
| Direct labor-hours | 60 |
What is the total
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