Lancelot Corporation manufactures tennis gear and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information relates to the company's manufacturing K overhead data: Budgeted output units Budgeted machine-hours Budgeted variable manufacturing overhead costs for 3,000 units Actual output units produced Actual machine-hours used Actual variable manufacturing overhead costs 3,000 units 15,000 hours $187,500 3,500 units 14,500 hours $250,000 What is the flexible-budget variance for variable manufacturing overhead? OA. $62,500 favorable OB. $31,250 favorable OC. $62,500 unfavorable OD. $31,250 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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