QS 17-11 (Algo) Computing activity rates for activity-based costing LO P3 A manufacturer uses activity-based costing to assign overhead cost to products. Budgeted cost information for its activities fol Budgeted Cost $ 87,400 97,050 Activity Cost Driver Purchase orders. Square feet Budgeted Activity Usage 3,800 purchase orders 4,300 square feet 50 Setups Factory services Setup 68,550 Setups Compute an activity rate for each activity. (Round your answers to 2 decimal places.) Activity Purchasing Activity Purchasing Factory services Setup Budgeted Cost 87,400 97,050 68,550 $ $ $ Budgeted Activity Usage Activity Rate
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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