The following information is provided for Space Antenna Corp., which manufactures two products: Lo-Gain antennas and Hi-Gain antennas for use in remote areas. E (Click the icon to view the information.) Space Antenna plans to produce 50 Lo-Gain antennas and 325 Hi-Gain antennas. Read the requirements. Requirement 1. Compute the indirect manufacturing cost per unit using direct labor hours for the single plantwide predetermined overhead allocation rate. First, compute the predetermined overhead (OH) allocation rate. (Round your answer to the nearest cent.) The predetermined overhead (OH) allocation rate is Data Table Activity Cost Allocation Base Setup 51,000 Number of setups 42,000 Number of machine hours Machine maintenance 93,000 Total indirect manufacturing costs Lo-Gain Hi-Gain Total Direct labor hours 1,600 4,400 6,000 Number of setups 20 20 40 Number of machine hours 3,500 1,500 5,000
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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