The Shoe Shop Company manufactures two types of shoes; dress and casual shoes. For the month of May, the company plans to produce 22,000 pairs of dress shoes and 16,000 pairs of casual shoes. Both types of shoes are produced in the assembling and finishing departments. The direct labor rates for assembling and finishing departments are $13.00 per hour and $15.00 per hour respectively. The following table indicates the amount of direct labor hours required for each type of shoe: Assembling Finishing Dress shoes 30 minutes per pair 15 minutes per pair Casual shoes 30 minutes per pair 20 minutes per pair Calculate the budgeted direct labor cost. Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. Dress Shoes Casual Shoes Cost per unit of Input ($/hour) Assembling Amount of Inputs per unit (minutes) Total Cost per unit of input ($/hour) $ Finishing Amount of Inputs per unit (minutes)
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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