Balestier Company has two products: A and B. The company uses activity-based costing. The total cost and activity for each of the company's three activity cost pools are as follows: Estimated Expected Activity Activity Cost Pools Overhead Cost Product A Product B Product design $32,600 700 300 Assembling $17,600 600 200 Supporting customers $52,500 400 100 The total overhead cost assigned to Product A under activity-based costing is closest to: Question 12 options: 1) $78,020 2) $102,700 3) $54,380,000 4) $207
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.
Balestier Company has two products: A and B. The company uses activity-based costing. The total cost and activity for each of the company's three activity cost pools are as follows:
| Estimated | Expected Activity | ||
| Activity Cost Pools | Product A | Product B | |
| Product design | $32,600 | 700 | 300 |
| Assembling | $17,600 | 600 | 200 |
| Supporting customers | $52,500 | 400 | 100 |
The total overhead cost assigned to Product A under activity-based costing is closest to:
Question 12 options:
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