On January 1, PBDKCT113 Corp. estimated its total overhead for the upcoming year to be $300,000 and its total machine hours to be 20,000. PBDKCT113's actual machine hours for the year were 26,870. The company uses job-order costing with machine hours as the allocation base. At the end of the year, the PBDKCT113's books reveal following actual results: Advertising Expense $8,500 Direct Labor $23,600 (ID#96416) Purchases of Raw Materials $17,900 Rent, Factory Building $59,000 Indirect Labor $42,200 Sales Commissions $8,700 Utilities, Factory $14,300 Maintenance, Factory Equipment $5,400 CEO Salary $7,800 Depreciation, Factory Equipment $10,700 Q: What is PBDKCT113's amount of over- or under-applied OH? (Enter just the amount.) A: $
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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