l Cost Driver Estimated Activity per Driver Estimated Overhead Material Material Requisitions 12,000 $44,400 Machining Machine Hours 186,600 373,200 Inspection Number of Inspections 9,000 65,700 What is the predetermined overhead rate for each activity? Round your answers to two decimal places
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.
Custom's has three cost pools and an associated cost driver to allocate the costs to the product. The cost pools, cost driver, estimated
| Cost Pool | Cost Driver | Estimated Activity per Driver |
Estimated Overhead |
| Material | Material Requisitions | 12,000 | $44,400 |
| Machining | Machine Hours | 186,600 | 373,200 |
| Inspection | Number of Inspections | 9,000 | 65,700 |
What is the predetermined overhead rate for each activity? Round your answers to two decimal places.
| Cost Pool | Predetermined Overhead Rate |
|
| Material | $fill in the blank 1 | per requisition |
| Machining | $fill in the blank 2 | per machine hour |
| Inspection | $fill in the blank 3 | per inspection |
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