Sheffield Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2022, 10.200 suits were produced. The following standard and actual cost data applied to the month of May, when normal capacity was 16,500 direct labor hours. All materials purchased were used. Cost Element Direct materials Direct labor Overhead 10 yards at $4.90 per yard 1.10 hours at $14.00 per hour 1.10 hours at $6.60 per hour (fixed $4.00; variable $2.60) (1) Total materials variance (2) Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $66,000, and budgeted variable overhead was $42,900. (a) Compute the total, price, and quantity variances for (1) materials and (2) labor. (Round per unit values to 2 decimal places, eg. 52.75 and final answers to O decimal places, e.g. 52.) Materials price variance Materials quantity variance Standard (per unit) Total labor variance Labor price variance Labor quantity variance $ $ $ $ Actual $ $481,750 for 102,500 yards ($4.70 per yard) $173,316 for 12,120 hours ($14.30 per hour) $48,800 fixed overhead $37.500 variable overhead $
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.
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 8 images
