During May, Joliet Fabrics Corporation manufactured 540 units of a special multilayer fabric with the trade name Stylex. The following information from the Stylex production department also pertains to May. Direct material purchased: 18,400 yards at $1.42 per yard Direct material used: 9,900 yards at $1.42 per yard Direct labor: 2,500 hours at $9.19 per hour The standard prime costs for one unit of Stylex are as follows: Direct material: 20 yards at $1.39 per yard Direct labor: 4 hours at $8.00 per hour Total standard prime cost per unit of output $ 27.80 32.00 $59.80 1. Direct-material price variance 2. Direct-material quantity variance 3. Direct-material purchase price variance $ 26,128 14,058 22,975 Required: Compute the following variances for the month of May. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero 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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