Required information Gable Company uses three activity pools. Each pool has a cost driver Information for Gable Company follows Activity Pools Machining Designing costs Setup costs Number of machine hours Number of design hours Number of batches Total Cost of Pool $ 380,120 85,400 74,672 Suppose that Gable Company manufactures three products, A B. and C Information about these products follows Product 44,000 2,000 180 Product A Product B Product C Product A 34,000 3,600 60 Cost Driver Number of sachine hours Number of design hours Number of batches Total Overhead Assigned Estimated Cost Driver 85,400 9,000 525 Product C 10,400 3,400 205 Required: Using activity rates, determine the amount of overhead assigned to each product Note: Do not round intermediate calculations. Round the final answer to nearest whole number.
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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