Bricktan Incorporated makes three products, Basic, Classic, and Deluxe. The maximum Bricktan can sell is 724,000 units of Basic, 492,000 units of Classic, and 124,500 units of Deluxe. Bricktan has limited production capacity of 1,008.000 machine hours. Machine hours per unit are as follows: Basic, 1 hour, Classic, 1.25 hours; and Deluxe 2.5 hours. Contribution margin per unit is $15 for Basic, $25 for Classic, and $55 for Deluxe. What is the most profitable sales mix for Bricktan Incorporated? Multiple Choice 622,500 Basic, O Classic and 124,500 Deluxe. 72,400 Basic, 492,000 Classic and 268,800 Deluxe. 81,750 Basic, 492,000 Classic and 124,500 Deluxe. 168,000 Basic, 124,500 Classic and 268,800 Deluxe. 367,500 Basic, 268,800 Classic and 124,500 Deluxe.
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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