Cerium Inc. produces a variety of household cleaning products. Cerium's controller has developed standard costs for the following four overhead items: Variable Rate per Direct Labor Hour Overhead Item Total Fixed Cost Maintenance $ 113,000 Power Indirect labor Rent 140,000 35,000 Assume that actual production required 60,000 direct labor hours at standard. The actual overhead costs incurred were as follows: Maintenance Power Indirect labor Rent Direct labor hours based on actual Overhead: Required: Prepare a performance report for the period based on actual production. If an amount box does not require an entry, enter "0". Enter all values as a positive amount, including variances. If an amount is zero, enter "0" and choose "Not applicable", otherwise choose favorable or unfavorable from the drop down list. Maintenance Power Indirect labor $0.20 0.68 3.70 Rent Total overhead $126,800 40,300 361,400 35,000 Performance Report Budgeted* Actual Variance
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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