Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information Units Setups Inspections Assembly (dlh) 2,700 4,000 8,000 8,000 Small table lamps Desk lamps Activity Setups 9,150 15,250 44,400 44,400 Total Activity-Base Usage Budgeted Activity Cost 12,000 $102,000 24,400 129,320 77,700 310,800 Inspections Assembly (dlh) The total factory overhead to be allocated to desk lamps is Oa. $456,995 Ob. $228,498 Oc. $587,565 Od. $326,425
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.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
