Petitte Corporation has provided the following data from its activity-based costing system: annual unit production and sales 410 annual machine hours 700 annual number of orders 30 annual inspection hours 30 direct materials cost 45.67/unit direct labor cost 31.24/unit Data concerning the company's product K54A below: annual unit production and sales 410 annual machine hours 700 annual # of orders 30 annual inspection hours 30 direct materials cost 45.67/unit direct labor cost 31.24/unit According to the activity-based costing system, the unit product cost of product K54A is closest to: $112.64 per unit $114.99 per unit $116.98 per unit $76.91 per unit
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.
Petitte Corporation has provided the following data from its activity-based costing system:
annual unit production and sales 410
annual machine hours 700
annual number of orders 30
annual inspection hours 30
direct materials cost 45.67/unit
direct labor cost 31.24/unit
Data concerning the company's product K54A below:
annual unit production and sales 410
annual machine hours 700
annual # of orders 30
annual inspection hours 30
direct materials cost 45.67/unit
direct labor cost 31.24/unit
According to the activity-based costing system, the unit product cost of product K54A is closest to:
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$112.64 per unit |
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$116.98 per unit |
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$76.91 per unit |
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