Braverman Company has two manufacturing departments-Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $10.00 per direct labor-hour and 110% of direct materials cost, respectively. The company's direct labor wage rate is $17.00 per hour. The following information pertains to Job 700: Direct materials Direct labor Finishing Fabrication $ 415 $ 40 $34 $ 102 Required: 1. What is the total manufacturing cost assigned to Job 700? 2. If Job 700 consists of 5 units, what is its unit product cost? Note: Round your answer to 2 decimal places. 1. Total manufacturing cost 2. Unit product cost per unit
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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