Standard wage per hour $12.00 Standard labor time per faucet 20 min. Standard number of lbs. of zinc
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.
Faucet Industries Inc. manufactures faucets in a small manufacturing facility. The faucets are made from zinc. Faucet Industries has 70 employees. Each employee presently provides 36 hours of labor per week. Information about a production week is as follows:
| Standard wage per hour | $12.00 |
| Standard labor time per faucet | 20 min. |
| Standard number of lbs. of zinc | 2.1 lbs. |
| Standard price per lb. of zinc | $10.00 |
| Actual price per lb. of zinc | $10.25 |
| Actual lbs. of zinc used during the week | 15,600 lbs. |
| Number of faucets produced during the week | 7,200 |
| Actual wage per hour | $12.40 |
| Actual hours per week | 2,520 hrs |
a. Determine the
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