Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product Number of Units Direct Labor Hours Per Unit Machine Hours Per Unit Blinks 1,037 3 7 Dinks 2,059 6 6 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $111,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $88,600.
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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Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below.
ProductNumber of
UnitsDirect Labor Hours
Per UnitMachine Hours
Per UnitBlinks 1,037 3 7 Dinks 2,059 6 6
All of the machine hours take place in the Fabrication department, which has an estimated
overhead of $111,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $88,600.Ramapo Company uses a single plantwide overhead rate to apply all
factory overhead costs. The single plantwide rate, if it is based on machine hours instead of labor hours, isa.$23.41 per machine hourb.$12.72 per machine hourc.$8.14 per machine hourd.$10.18 per machine hour
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