Olihe Cop currenty makes 9,300 subcomponents a year in one of its factories. The Per unit 25 $34 Direct materials 29 Direct labor 24 Fariable manufacturing overhead Fized manufactoring overhead 12 Total unit cost $99 untr at a $97 per unit price. Fixed overhead is not avoidable. What is
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.
![Seved
Olihe Corp curenty makes 9.300 subcomponents a year in one of its factorles. The unit costs to produce are:
Per unit
$34
25
Direct materials
29
Direct labor
24
Fariable manufacturing overhead
Fired manufactaring overhead
12
$99
Total unit cost
An atside suppler has offered to provide Olive Corp. with the 9,300 subcomponents at a $97 per unit price. Fixed overhead is not avoidable. What is
the mexinum price Olive Carp. should pay the outside supplier?
Mtcle Ohoice
$87
$97
$99](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F722bea73-1b23-42a9-a20d-4d3ae022af80%2Fec7ca0b9-f3f4-4345-b466-5f98c7c2c95e%2Flayt5w5_processed.jpeg&w=3840&q=75)
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