QI Dania company allocates manufacturing overhead costs using direct labor hours. The manager provides the following information from the job-cost record with missing amounts you should fill it | The job-cost record (orders) | X1 Direct materials cost |X2 |X3 ST.000 8.000 ? Direct labor hours 500 120 ? Direct labor cost $11,000 ? Overhead allocated ?8 ? $1.600 Total manufacturing cost 27,000 ? 21,000 27000= 23000+ (× *500 Q2 Nafiz Associates is an accounting firm that provides audit, tax and accounting services. The 2021 budgeted Income statement for the firm is as follows Service revemue $200,000 Professional labor cost (direct) S60,000 Client support cost (indirect) $90,000 Operating income $50,000 The indirect costs are allocated to the service using professional labor cost as the allocation base and the target profit is 25% of the price. 1.Compute the budgeted indirect cost allocation rate 2. On May 2021 the firm is bidding on tax and audit service for Dania company that is expected to require 90 hours of professional service time (the average wages rate is $80 per hour). Calculate the estimated total cost of the job and its price
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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