Budgeted variable factory overhead costs: $354,000 Budgeted production in units: 60,000 units Budgeted time: 2 direct labor hours per unit Allocation base: direct labor hours Actual production in units: 58,600 units Actual variable factory overhead costs incurred: $338,500 Actual direct labor hours used: 119,000 hours CALCULATE VARIABLE FACTORY OVERHEAD ALLOCATED: Allocated: $__________ CALCULATE VARIABLE FACTORY OVERHEAD SPENDING (PRICE) VARIANCE : Price variance: $____________ Circle one: Favorable Unfavorable CALCULATE VARIABLE FACTORY OVERHEAD EFFICIENCY (QUANTITY) VARIANCE: Quantity variance: $_________ Circle one: Favorable Unfavorable
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.
Budgeted variable
Budgeted production in units: 60,000 units
Budgeted time: 2 direct labor hours per unit
Allocation base: direct labor hours
Actual production in units: 58,600 units
Actual variable factory overhead costs incurred: $338,500
Actual direct labor hours used: 119,000 hours
- CALCULATE VARIABLE FACTORY OVERHEAD ALLOCATED:
Allocated: $__________
- CALCULATE VARIABLE FACTORY OVERHEAD SPENDING (PRICE) VARIANCE :
Price variance: $____________
Circle one: Favorable Unfavorable
- CALCULATE VARIABLE FACTORY OVERHEAD EFFICIENCY (QUANTITY) VARIANCE:
Quantity variance: $_________
Circle one: Favorable Unfavorable
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