Job 327 was recently completed. The following data have been recorded on its job cost sheet: Direct Materials: $3,500 Direct Labor hours: 100 Direct Labor wage rate: $10.00 per hour The company applies manufacturing overhead on the basis of direct labor hours. The pre-determined overhead rate is $15.00 per direct labor hour. The total cost that would be recorded on the job cost sheet for job 327 would be:
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.
Job 327 was recently completed. The following data have been recorded on its
Direct Materials: $3,500
Direct Labor hours: 100
Direct Labor wage rate: $10.00 per hour
The company applies manufacturing
The total cost that would be recorded on the job cost sheet for job 327 would be:
Step by step
Solved in 3 steps
