Determine the number of actual labour-hours spent opening batches during the week and determine the actual hourly rate paid to employees for opening batches last week.
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.
Determine the number of actual labour-hours spent opening batches during the week and determine the actual hourly rate paid to employees for opening batches last week.
![Worldwide Credit Card Inc. uses standards to control the labour time involved in opening mail from cardholders and recording the
enclosed remittances. Incoming mail is gathered into batches, and a standard time is set for opening and recording each batch.
The labour standards relating to one batch are as follows:
Per batch
Standard
Hours
2.5
Total labour variance
Labour rate variance
Standard
Rate
$12.00
The record showing the time spent last week in opening batches of mail has been misplaced. However, the batch supervisor
recalls that 168 batches were received and opened during the week, and the controller recalls the following variance data relating
to these batches:
$660 U
$300 F
Standard
Cost
$30.00
(Hint: A useful way to proceed is to work from known to unknown data, either by using the variance formulas or by using the
columnar format.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5339e1be-24db-4335-a358-e49261daa834%2F2b7d857c-ec0c-4c67-8ccc-bff4a2538e9c%2F5nc7q6p_processed.jpeg&w=3840&q=75)
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