The following information is related to manufacturing overhead costs. MOH cost pool includes depreciation (fixed. 14000 dollars per month), indirect material (variable, 300 dollars per unit) and supervision (semi-variable). During the last six months, the highest activity level was in January (150 units produced) and total MOH cost was $135000. The lowest activity level was in May (86 units produced) and total MOH cost was $83800. a.) Write the cost formula of supervision (use the high-low method). b.) Estimate Total MOH for July (90 units produced) by using the data of the year's first six months
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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