The Berjaya Manufacturing Company (BMC) produces an industrial chemical product. At the beginning of the year, BMC had the following standard costing sheet: Direct materials (10 kg at RM1.60) Direct labour (0.75 hr at RM18.00 per hr) Fixed overhead (0.75 hr at RM4.00 per hr) Variable overhead (0.75 hr at RM3.00 per hr) The actual results for the year are as follows: Unit produced: 70,000. . Direct materials purchased: 745,000 kg at RM1.50 per pound • Direct materials used: 738,000 kg. • Direct labour: 56,000 hours at RM1,002,400. Fixed overhead: RM215,000. Variable overhead: RM175,400. . . RM 16.00 13.50 3.00 2.25 . equired: Compute material price variance and material quantity variance. Find the total variance and explain your answer. Compute direct labour rate variance and direct labour efficiency variance Find the
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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