Royal Bakery produces three types of products- product A product B and product C. Product A requires 200 machine setups and machine hours used on it were 1,000. Product B requires 400 machine setups and machine hours used on it were 500. Product Crequires 620 machine setups and machine hours used on it were 1,500. The company has defined an activity cost pool machine setups for which the cost driver is number of machine setups. The total overhead cost assigned to that cost pool was OMR 183,000. Estimate the machine setups overhead assigned to each of the products DaOMR 30,000 for A OMR 63,000 for 8; OMR 90,000 for C Ob. OMR 30.000 for A: OMR 60,000 for B: OMR 93,000 for C OC OMR 61.000 for A OMR 30,500 for B: OMR 91,500 for C Od.OMR 61,000 for A: OMR 61,000 for B: OMR 61,000 for C
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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