Maintenance costs at a Tierce Corporation factory are listed below: Machine-Hours Maintenance Cost 3,658 $52,986 January February March 3,613 $52,580 3,607 $52.504 $52,585 April.. May June. 3.614 3.638 3,604 $52,825 $52,500 July August September 3,653 3,634 S52.943 $52,776 3.588 $52.337 Management believes that maintenance cost is a mixed cost that depends on machine hours. Using the high-low method to estimate the variable and fixed components of the cost, these estimates would be closest to: Select one: Oa. $14.54 per machine-hour; $52,671 per month Ob. $9.27 per machine-hour; $19,076 per month O c. $0.11 per machine-hour; $52,591 per month d. $9.27 per machine-hour; $19,071 per month
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.
Step by step
Solved in 2 steps
