ect materials. ect labor iable manufacturing overhead March, the following activity was recorded by the company: company produced 4,200 units during the month. otal of 21,200 pounds of material were purchased at a cost of $15,380. re was no beginning inventory of materials on hand to start the month; at end of the month, 5,420 pounds of material remained in the warehouse. ing March, 1,270 direct labor-hours were worked at a rate of $48.50 per Ir. lable manufacturing overhead costs during March totaled $15,861. rect materials purchases variance is computed when the materials are ised. riable overhead rate variance for March is: Multiple Choice $2,780 F Standard Quantity 7.60 pounds 0.30 hours 0.30 hours $3,222 U $3,222 F $2,780 U Standard I $ 0.90 $ 51.50 $ 10.30
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.
Step by step
Solved in 2 steps
