mpany makes four products in a single facility. Data concerning these products appear below: Product Selling price per unit Variable manufacturing cost A B D P28.20 P26.60 P20.40 P24.70 per unit Variable selling cost per unit Milling machine minutes per unit P11.40 P7.70 P3.40 P6.30 P9.30 P1.50 P3.50 P1.80 2.60 1.40 0.70 0.90 Monthly demand in units The milling machines are potentially the constraint in the production facility. A total of 10,400 minutes are available per month on these machines. 1,000 3,000 4,000 1,000 8)Which product makes the LEAST profitable use of the milling machines? a. Product A b. Product B c. Product C d. Product D 9) Which product makes the MOST profitable use of the milling machines? a. Product A b. Product B c. Product C d. Product D 10) Up to how much should the company be willing to pay for one additional hour of milling machine time if the company has made the best use of the existing milling machine capacity? (Round off to the nearest whole cent.) a. P10.60 b. PO.00 c. P5.15 d. P17 40 n'of
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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