Splish Brothers is a trucking company. It provides local, short-haul, and long-haul services. It has developed the following three cost pools. Activity Cost Pool Cost Drivers Estimated Overhead Estimated Use of Cost Driver per Activity Loading and unloading Number of pieces $97,130 88,300 Travel Miles driven 443,250 591,000 Logistics Hours 82,880 2,960 (a) Compute the activity-based overhead rates for each pool. (Round answers to 2 decimal places, e.g. 12.75.) Activity Cost Pool Activity-Based Overhead Rate Loading and unloading per piece Travel per mile Logistics per hour Please fill in the table.
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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Activity Cost Pool
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Cost Drivers
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Estimated
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Estimated Use of
Cost Driver per Activity |
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|---|---|---|---|---|---|---|
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Loading and unloading
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Number of pieces
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$97,130
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88,300
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|||
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Travel
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Miles driven
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443,250
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591,000
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|||
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Logistics
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Hours
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82,880
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2,960
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(a)
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Activity Cost Pool
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Activity-Based
Overhead Rate |
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|---|---|---|---|
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Loading and unloading
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per piece
|
||
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Travel
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per mile
|
||
|
Logistics
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per hour
|
Please fill in the table.
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