Ghaz Company produces two types of sound units: Deluxe and Regular. follows: eIvity data Is as Product-Costing Data Regular 50,000 RM369,000 45,000 90,000 Total Activity Usage Measures Units produced per year Deluxe 5,000 RM39,000 5,000 10,000 55,000 RM408,000 50,000 100,000 15 Prime cost Direct labor hours Machines hours Production runs Number of moves 10 120 60 180 Activity Cost Data (Overhead Activities) Cost (RM) 60,000 Activity driver Production runs Activity Setups Materials handling Number of moves 30,000 50,000 40,000 Power Machines hours Direct labor hours Testing Total 180,000 Required: a) Calculate the consumption ratios for each activity. b) Choose group activity based on the consumption ratios. c) Calculate a rate each pooled group of activities. d) Calculate unit product costs using the pool rates.
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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