Bellingham Company produces a product that requires 2.5 standard pounds per unit. The standard price is $3.75 per pound. The company produced 15,000 units that required 36,000 pounds, which were purchased at $4.00 per pound. The product also requires 4 standard hours per unit at a standard hourly rate of $20 per hour. The 15,000 units required 61,800 hours at an hourly rate of $19.85 per hour. In addition, the standard variable overhead cost per unit is $0.90 per hour and the actual variable factory overhead was $52,770. Finally, the standard fixed overhead cost per unit is $1.15 per hour at 58,000 hours, which is 100% of normal capacity. Assume that Bellingham sold 15,000 units at $172 per unit. I need to fill in the income statement and am having a hard time figuring out the cost of goods sold the variable factory overhead controllable variance and the fixed factory everhead volume variance
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.
Bellingham Company produces a product that requires 2.5 standard pounds per unit. The standard price is $3.75 per pound. The company produced 15,000 units that required 36,000 pounds, which were purchased at $4.00 per pound. The product also requires 4 standard hours per unit at a standard hourly rate of $20 per hour. The 15,000 units required 61,800 hours at an hourly rate of $19.85 per hour. In addition, the standard variable
I need to fill in the income statement and am having a hard time figuring out the cost of goods sold the variable factory overhead controllable variance and the fixed factory everhead volume variance
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