It applies overhead based on direct labor hours. Information is available for August when the entity made 4,400 units: Standard: DLH per unit P2.20 Variable overhead per DLH 2.50 Fixed overhead per DLH 3.00 (based on12,000 DL hours) Actual: Direct labor hours 8,800 Variable overhead 29,950 Fixed overhead 42,300 What is the Budgeted variable overhead and Budgeted fixed overhead ?
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.
It applies
Information is available for August when the entity made 4,400 units:
Standard:
DLH per unit P2.20
Variable overhead per DLH 2.50
Fixed overhead per DLH 3.00 (based on12,000 DL hours)
Actual:
Direct labor hours 8,800
Variable overhead 29,950
Fixed overhead 42,300
What is the Budgeted variable overhead and Budgeted fixed overhead ?
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