C-Cubed has two manufacturing departments - Fabrication and Assembly. In its first month, it completed just one job. The following information is available for the company as a whole and for the job: Fabrication Assembly 4 Estimated Total Machine-Hours Used Estimated Total Manufacturing Overhead Per Machine-Hour $10 per Machine-Hour $20 per Machine-Hour Mountain Biker Job $75 Direct Materials Direct Labor S60 Actual Machine Hours Used Fabrication Assembly C-Cubed uses a plantwide predetermined overhead rate based on machine-hours. Compute the manufacturing overhead applied to the Mountain Biker Job. 3 14 Multiple Choice $98 $160 $110 $112
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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