From the following data calculate the level of performance of Rashid, Ahmed, and Khamis using Merrick Differential Piece Rate System. Normal rate per unit is RO 20, Working hours per day are 8 hours, Standard time per unit is 30 seconds, and output is as follows: Rashid 600 units, Ahmed 875 units, and Khamis 795 units. a. Rashid Earnings is 62.5%, Ahmed Earning is 82.81% and Khamis Earnings is 91.14% b. Rashid Earnings is 91.14%, Ahmed Earning is 82.81%, and Khamis Earnings is 62.5% c. Rashid Earnings is 62.5%, Ahmed Earning is 91.14% and Khamis Earnings is 82.81% d. Rashid Earnings is 91.14%, Ahmed Earning is 62.5%, and Khamis Earnings is 82.81%
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
