Level of Activity 4000 units 6500 units 7000 units Revenue Variable costs Total contribution Fixed costs Total Profit/Loss Contribution per unit Profit/Loss per unit Required: With the following data complete the table above. A company manufactures only one product called XY. The following information relates to the product. Selling price per unit $200 Direct material cost per unit $6 Direct labour cost per unit $2 Variable overhead cost per unit $4 Fixed costs for the period are $24,000
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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Level of Activity |
4000 units |
6500 units |
7000 units |
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Revenue |
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Variable costs |
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Total contribution |
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Fixed costs |
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Total |
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Contribution per unit |
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Profit/Loss per unit |
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Required:
With the following data complete the table above.
A company manufactures only one product called XY. The following information relates to the product.
Selling price per unit $200
Direct material cost per unit $6
Direct labour cost per unit $2
Variable overhead cost per unit $4
Fixed costs for the period are $24,000
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