Brown Brothers is debating the use of direct labour cost or direct labour hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the year ended December 31, 20x7. Estimated manufacturing overheads Actual manufacturing overhead costs $359,600 $340,000 $449,500 $441,000 248,000 242,000 Estimated direct labour cost Actual direct labour cost Estimated direct labour hours Actual direct labour hours Manufacturing overhead applied based on direct labour cost is? O a. $352,800 O b. $359,600 O c. $360,000 O d. $348,480
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.
![Brown Brothers is debating the use of direct labour cost or direct labour hours as the cost
allocation base for allocating manufacturing overhead. The following information is available
for the year ended December 31, 20x7.
Estimated manufacturing overheads
Actual manufacturing overhead costs
Estimated direct labour cost
Actual direct labour cost
$359,600
$340,000
$449,500
$441,000
248,000
242,000
Estimated direct labour hours
Actual direct labour hours
Manufacturing overhead applied based on direct labour cost is?
O a. $352,800
O b. $359,600
O c. $360,000
O d. $348,480](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F50888a09-9f3d-411b-8084-aa61b1732a50%2F8ba18b12-7866-4161-bc9e-15d79b62ad35%2Feun0njp_processed.jpeg&w=3840&q=75)
![The accounting firm which audits the financial
statements of a company uses a:
a. Process costing system
O b. Job costing system
c. Average costing system
O d. Computer costing system](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F50888a09-9f3d-411b-8084-aa61b1732a50%2F8ba18b12-7866-4161-bc9e-15d79b62ad35%2Fn98sk8_processed.jpeg&w=3840&q=75)
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