Indirect labor Indirect materials Utilities Fixed overhead costs per month are Supervision $3,600, Depreciation $1,700, and Property Taxes $600. The company believes it will normally operate in a range of 5,600-11,000 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Variable Costs Indirect labor Indirect materials Utilities. # # # $1.00 0.70 0.30 (a) Prepare a flexible budget performance report, assuming that the company worked 9,200 direct labor hours during the month. (List variable costs before fixed costs.) $8,970 Supervision 6,240 Depreciation 2,320 Property taxes $ Fixed Costs Budget $3,600 1,700 600 MYERS COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 Actual Costs Difference Favorable Unfavorable Neither Favorable nor Unfavorable # #
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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