Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produc Assessment Tool iFrame dels, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs. Manufacturing overhead Total costs Standard 24,900 14,940 18,675 $ 498,000 298,800 Predetermined overhead rate Enhanced 8,300 9,960 18,675 $ 747,000 634,950 per unit Total Required: Compute the predetermined overhead rate assuming that Redfern Audio uses the number of units to allocate overhead costs. Note: Round your answer to 2 decimal places. 33,200 24,900 37,350 $ 1,245,000 933,750 851,580 $ 3,030,330
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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