Bernard Incorporated uses a job-order costing system and a predetermined overhead rate based on direct labor hours. At the beginning of the year, the company estimated manufacturing overhead for the year would be $1,184,000 and direct labor hours would be 80,000 hours. The following information pertains to September of the current year: Job X10 Job X11 Job X12 Work in Process, Sept. 1 $14,000 $18,000 $24,000 March production activity: Materials used $12,800 $8,200 $9,700 Direct labour used $3,400 $4,600 $6,500 Machine hours 390 620 790 Labour hours 1,050 1,170 1,180 Required (round answers to 2 decimal points) At the end of the September Jobs X10 and Job X11 were completed, and Job X10 was sold and delivered to a customer - show the ending balances of the Work in Process and Finished Goods inventory accounts (assume no beginning Finished Goods inventory). If actual manufacturing overhead costs are $49,000, what is the amount of ovrehead Variance for September? Is it over or under applied overhead?
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.
Bernard Incorporated uses a
At the beginning of the year, the company estimated manufacturing overhead for the year would be $1,184,000 and direct labor hours would be 80,000 hours.
The following information pertains to September of the current year:
|
Job X10 |
Job X11 |
Job X12 |
|
|
Work in Process, Sept. 1 |
$14,000 |
$18,000 |
$24,000 |
|
March production activity: |
|||
|
Materials used |
$12,800 |
$8,200 |
$9,700 |
|
Direct labour used |
$3,400 |
$4,600 |
$6,500 |
|
Machine hours |
390 |
620 |
790 |
|
Labour hours |
1,050 |
1,170 |
1,180 |
Required (round answers to 2 decimal points)
- At the end of the September Jobs X10 and Job X11 were completed, and Job X10 was sold and delivered to a customer - show the ending balances of the Work in Process and Finished Goods inventory accounts (assume no beginning Finished Goods inventory).
- If actual
manufacturing overhead costs are $49,000, what is the amount of ovrehead Variance for September? Is it over or under applied overhead?
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