The following information is available for Anuounyam Manufacturing Company for June when the company produced 2,100 units: Standard: Material: 2 pounds per unit @ GH¢5.80 per pound, labour: 3 direct labour hours per unit @ GH¢10.00 per hour. Actual: Material: 4,250 pounds purchased and used @ GH¢5.65 per pound, labour: 6,300 direct labour hours at GH¢9.75 per hour. What is the labour rate variance?
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 is available for Anuounyam Manufacturing Company for June when the company produced 2,100 units: Standard: Material: 2 pounds per unit @ GH¢5.80 per pound, labour: 3 direct labour hours per unit @ GH¢10.00 per hour. Actual: Material: 4,250 pounds purchased and used @ GH¢5.65 per pound, labour: 6,300 direct labour hours at GH¢9.75 per hour. What is the labour rate variance?
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