Home Insert Page Layout Formulas Data Review B 300,000 units 279,070 units 232,558 units 50 per unit 40,000 units 240,000 units 260,000 units 10 per unit $3,000,000 10 Total budgeted operating (non-manuf.) costs (all fixed) S 500,000| 1 Theoretical capacity 2 Practical capacity 3 Normal capacity utilization 4 Selling price 5 Beginning inventory 6 Production 7 Sales volume 8 Variable budgeted manufacturing cost 9 Total budgeted fixed manufacturing costs 24
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.
Magic Me is a manufacturer of magic kits. It uses absorption costing based on
There are no price, spending, or efficiency variances. Actual operating costs equal budgeted operating costs. The production-volume variance is written off to cost of goods sold. For each choice of denominator level, the budgeted production cost per unit is also the cost per unit of beginning inventory
Q. Why is the operating income under normal capacity utilization lower than the other two scenarios?
Step by step
Solved in 2 steps
