During the year, Advanced Products completed one order for a new customer, Shenzhen Enterprises. This customer did not order any other products during the year. Data concerning that order follow: 1. 2. 3. 000.00 Required: Using Exhibit 5-6 as a guide, prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Using Exhibit 5-7 as a guide, compute the activity rates for the activity cost pools. Calculate the total overhead costs for the order from Shenzhen Enterprises including customer support costs. Using Exhibit 5-12 as a guide, calculate the customer margin for Shenzhen Enterprises. 4. Data concerning the Shenzhen Enterprises Order Units ordered. 10 units Direct labor-hours. 2 DLHS per unit Selling price Direct materials Direct labor. $300 per unit $180 per unit $50 per unit 1338099
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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