Print Company manufacturers laser printers. It has outlined the following overhead cost drivers: Overhead Costs Pool Cost Driver Overhead Cost Budgeted Level for Cost Driver Quality control Number of inspections $ 80,000 1,600 Machine operation Machine hours 157,000 1,000 Materials handling Number of batches 1,500 30 Miscellaneous overhead cost Direct labor hours 60, 000 4,000 Print Company has an order for 1,000 laser printers that has the following production requirements: Number of inspections 210 Machine hours 260 Number of batches 5 Direct labor hours 810 Using activity - based costing, applied quality control factory overhead for the 1,000 laser printers order is: Multiple Choice $12, 150. $ 9,940. $10,500. $250. $40, 820.
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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