The levels of production and of manufacturing overhead for the first five months of 2009 for Apex Products are shown below. Units Produced Manufacturing Overhead January 11,500 $58,650 February 12,250 $59,413 March 11,125 $58,262 April 11,950 $59,140 May 10,750 $57,889 Using the high-low method, Apex monthly fixed overhead cost is closest to which of the following? A. $59,413 B. $12,495 C. $12,250 D. $46,918
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 levels of production and of manufacturing
Units Produced Manufacturing Overhead
January 11,500 $58,650
February 12,250 $59,413
March 11,125 $58,262
April 11,950 $59,140
May 10,750 $57,889
Using the high-low method, Apex monthly fixed overhead cost is closest to which of the following?
A. $59,413
B. $12,495
C. $12,250
D. $46,918
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