JPB Incorporated is a manufacturer of work apparel. See below for information on one of many items they produce. Using ACB, compute the manufacturing overhead cost per unit for duct A: Manufacturing Overhead: Activity Cost Pool Indirect Labour Machine Costs General Factory Activity Est. Total Measure Cost DL Hours $120,000 Mach Hours DL Hours $250,000 $200,000 Est. Labour Hours for All products Est. Machine Hours for All Products Est. Labour Hours to Product All of Product A Est. Machine Hours to Produce All of Product A Units of Product A Planned for Production 2,000 5,000 200 1,000 3,000 Hint: Step #1) Determine the Predetermined Activity Rate for each Activity Cost Pool Step #2) Allocate costs to Total Product A's using the Predetermined Activity Rate Step #3) Compute the per Unit 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.
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