Starfish Enterprises produces men’s sports coats that are sold by popular department stores. Each retail order is treated as a job that accumulates materials, labor, and overhead costs for a batch of sports coats. Management has obtained data on the labor costs for four selected jobs over a six-month period. Each selected job represents a similar style and size of sports coat. The data are as follows: Count Direct Labor Hour Direct Labor Rate per Hour Total Direct Labor Cost Job 107 10 4.50 14.00 63.00 Job 125 14 7.00 14.00 98.00 Job 160 16 8.80 14.00 123.20 Job 190 8 3.20 14.00 51.20 The direct labor cost per unit for Job 125 is ________.
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.
1. Starfish Enterprises produces men’s sports coats that are sold by popular department stores. Each retail order is treated as a job that accumulates materials, labor, and
Count |
Direct Labor Hour |
Direct Labor Rate per Hour |
Total Direct Labor Cost |
|||||
| Job 107 | 10 | 4.50 | 14.00 | 63.00 | ||||
| Job 125 | 14 | 7.00 | 14.00 | 98.00 | ||||
| Job 160 | 16 | 8.80 | 14.00 | 123.20 | ||||
| Job 190 | 8 | 3.20 | 14.00 | 51.20 |
The direct labor cost per unit for Job 125 is ________.
- $6.30
- $7.00
- $7.70
- $6.40
2. Starfish Enterprises produces men’s sports coats that are sold by popular department stores. Each retail order is treated as a job that accumulates materials, labor, and overhead costs for a batch of sports coats. Management has obtained data on the labor costs for four selected jobs over a six-month period. Each selected job represents a similar style and size of sports coat. The data are as follows:
Count |
Direct Labor Hour |
Direct Labor Rate per Hour |
Total Direct Labor Cost |
|||||
| Job 107 | 10 | 4.50 | 14.00 | 63.00 | ||||
| Job 125 | 14 | 7.00 | 14.00 | 98.00 | ||||
| Job 160 | 16 | 8.80 | 14.00 | 123.20 | ||||
| Job 190 | 8 | 3.20 | 14.00 | 51.20 |
The direct labor hour per unit for Job 190 is ________ hours.
- 0.45
- 0.50
- 0.55
- 0.40
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