For the next two items. Rose Corporation has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year. (Refer to image) If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is * Activity Cost Pool Cos Driver Est. Overhead Cost P 120,000 Driver Acivity 500 orders Ordering and Receiving Machine Semp Machintng Assembaly Inspection Orders Senups Machtne hors 450 setups 125,000 MH 297 000 1,500, Ona 1.200,000 1,000,000 parts 300,000 500Lspections Parts laspections a. P9.60 O b. P12.00 O c. P15.00 O d. P34.17 If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving per cost driver activity count is * Оа. РО.12 O b. P1.20 О с. Р240 O d. P6,834
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.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
