Saquon Barkley, Corp. currently produces two different footballs. They are either Regular or Special. Details from last year's operations are listed below (unit means one football): O $7.56 O $31.50 Number of units sold Sales price per unit Direct materials per unit Direct labor dollars per unit Design hours per unit Direct labor-hours per unit 0.40 2.00 Saquon Barkley Corp divides indirect costs into two different cost pools, with the respective allocation bases: The CEO of Saquon Barkley Corp is researching activity-based costing. However, the company employs traditional (simple) costing. Saquon Barkley Corp is doing some analysis at year-end to compare cost allocation under both methods. Total overhead costs incurred during the year were $604,800, with direct labor-hours as the only allocation base. Under Traditional Costing the total indirect costs allocated to each Special football is closest to: $11.52 Regular O $15.12 80,000 $45 $15 $18 Special 24,000 $120 1.00 $35 $55 2.50
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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