Assume the following for White Top Inc. for the current fiscal year. White Top applies overhead onthe basis of units produced.Job Machine Hours246 5,200247 4,000Direct labor hours 50,000Average hourly pay rate $16.00Manufacturing overhead $1,400,000Budgeted overhead $350,000Actual overhead $360,000Actual labor hours 22,000Actual number of units sold 650,000Overapplied overhead $ 30,000Budgeted production (units) 700,000Budgeted overhead $200,000Actual overhead $222,000Actual labor hours 15,000Actual number of units sold 43,000Underapplied overhead $ 20,000Budgeted production (units) 50,000Required How many units were produced in the current fiscal year?
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 the following for White Top Inc. for the current fiscal year. White Top applies
the basis of units produced.
Job Machine Hours
246 5,200
247 4,000
Direct labor hours 50,000
Average hourly pay rate $16.00
Manufacturing overhead $1,400,000
Budgeted overhead $350,000
Actual overhead $360,000
Actual labor hours 22,000
Actual number of units sold 650,000
Overapplied overhead $ 30,000
Budgeted production (units) 700,000
Budgeted overhead $200,000
Actual overhead $222,000
Actual labor hours 15,000
Actual number of units sold 43,000
Underapplied overhead $ 20,000
Budgeted production (units) 50,000
Required How many units were produced in the current fiscal year?
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