Question Content Area High-Low Method The manufacturing costs of Kellam Industries for the first three months of the year follow: Total Costs Units Produced January $425,700 2,365 units February 565,710 4,420 March 662,200 6,665 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. a. Variable cost per unit $fill in the blank 1 b. Total fixed cost $fill in the blank 2
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.
Question Content Area
High-Low Method
The
| Total Costs | Units Produced | |||
| January | $425,700 | 2,365 | units | |
| February | 565,710 | 4,420 | ||
| March | 662,200 | 6,665 |
Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.
| a. Variable cost per unit | $fill in the blank 1 |
| b. Total fixed cost | $fill in the blank 2 |
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