Germ Free produces hand sanitizer. It uses units as the cost driver for overhead and employs a standard costing system. The following information was provided by the company's controller: Produced Materials purchased Materials used Labor worked Actual overhead Actual Data 4,600 lbs. for a total of $32,660 4,560 lbs. 14,400 units 7,520 hrs. costing $91,368 $89,900 Standard and Budgeted Data Budgeted units Budgeted materials Budgeted labor Budgeted variable overhead Budgeted fixed overhead Overhead volume variance 14,200 units 0.35 lb. @ $7.00 per lb. 0.5 hours @ $12.10 per hour $39,050 $51,120 Calculate the controllable overhead variance and the overhead volume variances and indicate if each is favorable or unfavorable. Controllable overhead variance $ $ Favorable Favorable
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.
Please do not give solution in image format thank you
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
