Number of setups Number of inspections 10 10 20 20 Number of material moves 20 30 40 Engineering hours 10 10 20 12. How much overhead cost should be allocated to Job 210? b. 1,300 c. 1,800 d. 4,000 a. 900 13. Refer to the data for Michelle Company. Compute the cist if each units of Job 220 a. 134 b. 170 c. 309 d. 613 14. Refer to the data for Michelle Company. If the company prices its products at 150% of cost the price of each unit of Job 230 would be a. 89 b. 134 c. 201 d. 255
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.
![Number of setups
Number of inspections
Number of material moves
5
10
10
20
20
20
30
40
Engineering hours
10
10
20
12. How much overhead cost should be allocated to Job 210?
a. 900
b. 1,300
c. 1,800
d. 4,000
13. Refer to the data for Michelle Company. Compute the cist if each units of Job 220
a. 134
b. 170
с. 309
d. 613
14. Refer to the data for Michelle Company. If the company prices its products at 150% of cost the price
of each unit of Job 230 would be
a. 89
b. 134
c. 201
d. 255](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fba442755-29a0-4e96-8df5-65583f2a6301%2F7bb6ea1d-ef4b-4d8f-9481-fb20f4d9c1b9%2F0bxbkvo_processed.jpeg&w=3840&q=75)
![Michelle Company uses the Activity-based costing. It has identified the following overhead costs and
cost drivers for the coming year;
Budgeted cost
P36,000
Overhead item
Cost driver
Budgeted Activity level
No. of setups
No. of inspections
Machine set-up
Inspection
Material handling
Engineering
Budgeted direct labor cost was P100,000, and budgeted direct material cost was P280,000. The
following information was collected on three jobs that were completed during the year:
900
120,000
4,000
No. of material moves
80,000
8,000
Engineering hours
60,000
3,000
Job 210
12,000
Job 220
Job 230
Direct materials
9,000
10,000
Direct labor
18,000
13,500
140
15,000
Units completed
100
200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fba442755-29a0-4e96-8df5-65583f2a6301%2F7bb6ea1d-ef4b-4d8f-9481-fb20f4d9c1b9%2Faz43w1m_processed.jpeg&w=3840&q=75)
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