During March 2020, Toby Tool & Die Company worked on four jobs. A review of direct labor costs reveals the following summary data. Job Number Hours A257 A258 A259 A260 Total variance Job No. A257 A258 A259 220 A260 Actual 310 110 460 12,880 8.246 2.640 Hours Costs $5.500 225 $5,625 446 11,150 309 7,725 2.550 Costs Standard Actual Hours 102 Analysis reveals that Job A257 was a repeat job. Job A258 was a rush order that required overtime work at premium rates of pay. Job A259 required a more experienced replacement worker on one shift. Work on Job A260 was done for one day by a new trainee when a regular worker was absent. Prepare a report for the plant supervisor on direct labor cost variances for March. (Round actual rate and standard rate to 2 decimal places, eg. 10.50) Total Variance $125 F Totale 1,730 U Standard Hours 521 U 90 F $2,216 U Quantity Variance TOBY TOOL & DIE COMPANY Direct Labor Variance Report $ $ $ $ Actual Rate V $ $ $ $ Standard Rate Price Variance Price 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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