Sanford and Sons produces blue moons. Resin used to make the blue moons is purchased by the pound. Standards and actual cost data for Sanford and Sons standard cost system follow: Standard Data Actual Data Material 4.5 lbs. @ @2.00 per lb. Produced 9,500 units Labor 0.08 hr. @ $15 per hr. Materials cost $2.10 per pound Budgeted fixed overhead $12,480 Materials used 43,000 lbs. Budgeted variable overhead $36,480 Labor worked 7,800 hrs. totaling $117,780 Budgeted production 9,600 units Actual overhead Fixed $12,100; Variable: $37,100 How much is the standard cost for a blue moon?
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.
Sanford and Sons produces blue moons. Resin used to make the blue moons is purchased by the pound. Standards and actual cost data for Sanford and Sons
|
Standard Data |
|
Actual Data |
|
|
Material |
4.5 lbs. @ @2.00 per lb. |
Produced |
9,500 units
|
|
Labor |
0.08 hr. @ $15 per hr. |
Materials cost |
$2.10 per pound |
|
Budgeted fixed |
$12,480 |
Materials used |
43,000 lbs. |
|
Budgeted variable overhead |
$36,480 |
Labor worked |
7,800 hrs. totaling $117,780 |
|
Budgeted production |
9,600 units |
Actual overhead |
Fixed $12,100; Variable: $37,100 |
How much is the standard cost for a blue moon?
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