Platinum Manufacturing Company has two service departments (Maintenance and Personnel) and two producing departments (x and Y). The Maintenance Department costs of 9.000 TL are allocated on the basis of maintenance hours. The Personnel Department costs of 18.000 TL are allocated on the basis of number of employees. The original overhead costs of Department X and Y are 36.000 TL and 60.000 TL, respectively. Data on maintenance hours, direct labor hours and number of employees are as follows: Maintenance hours Number of employees Direct labor hours Maintenance 18 Personnel 150 1.200 81 1.000 Y 600 81 500 What is the overhead rate based on direct labor hour for Department Y assuming sequential method used? a. 145,20 TL per direct labor hour O b. 144,30 TL per direct labor hour O c. 142,50 TL per direct labor hour d. 143,40 TL per direct labor hour e. 143,00 TL per direct labor hour
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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