he following information applies to questions 11 and 12 Hyjuk Limited manufactures scuba tanks. The following information was obtained for the six months ending December 2020: Month Scuba tanks sold Production overheads ($ thousands) July 130 38.8 August 190 53.6 September 120 38.5 October 150 40.8 November 100 32.9 December 160 48 Use the high-low method to answer questions: a. Estimate the variable production overhead cost per scuba tank. b. Estimate the fixed production overhead cost.
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.
The following information applies to questions 11 and 12
Hyjuk Limited manufactures scuba tanks. The following information was obtained for the six months ending December 2020:
|
Month |
Scuba tanks sold |
Production ($ thousands) |
|
July |
130 |
38.8 |
|
August |
190 |
53.6 |
|
September |
120 |
38.5 |
|
October |
150 |
40.8 |
|
November |
100 |
32.9 |
|
December |
160 |
48 |
Use the high-low method to answer questions:
a. Estimate the variable production overhead cost per scuba tank.
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