Box Springs, Inc., makes two sizes of bax springs: twin and double. The direct material for the twin is $25 per estimates it will make 5,000 twins and 10,000 doubles in the next year. It estimates the overhead for each cos Estimated Use per Use per Activity Cost Overhead Twin Double Pools Driver $125,000 4,000 1,000 Framing Square Feet of Pine Padding Square Feet of Quilting 220,000 120,000 100,000 FINing Square Feet of Filling 255,000 500,000 350,000 Labeling Number of Boxes 240,000 850,000 350,000 Inspection Number of Inspections 162,000 12,000 6,000 How much does each unit cost to manufacture? Do not round intermediate computations but round final Total Cost per Unit Twin Double Direct Material Direct Labor Cost Overhead Total per Unit Feedback
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.
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