Print Company manufacturers laser printers. It has outlined the following overhead cost drivers: Overhead Costs Pool Quality control Machine operation Materials handling Number of batches Miscellaneous overhead cost Direct labor hours Print Company has an order for 1.000 laser printers that has the following production requirements Number of inspections Machine hours Number of batches Direct labor hours Munple Choice Cost Driver Number of inspections Machine hours $7800 175 180 Overhead Cost 5 650 Using activity-based costing, applied machine operation overhead for the 1,000 laser printers order is $ 64,800 132,000 900 48,000 Budgeted Level for Cost Driver 1,080 1,100 30 4,000
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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