The following information for Donoghue Manufacturing Company for the period just ended: Actual: Variable manufacturing overhead $96,000 Fixed manufacturing overhead $90,000 Actual production completed 84,000 units Actual machine hours worked 30,000 hours Standard and Budgeted: Standard variable overhead rate per machine hour $3 Standard fixed overhead rate per machine hour $2 Standard machine processing time make 2 units per hour Budgeted machine hours 41,000 machine hours Budgeted production 82,000 units The fixed overhead budget variance for Donoghue Manufacturing Company is: A. $6,000 U B. $2,000 F C. $8,000 U D. $4,000 F E. None of the above.
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.
The following information for Donoghue Manufacturing Company for the period just ended: Actual: Variable manufacturing
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