This cost data from Hickory Furniture is for the year 2017. Hickory Furniture data Month Numbers of Tables Produced Factory Utility Expenses January 550 $2,063 February 710 2,663 March 650 2,438 April 470 1,823 May 512 1,920 June 625 2,344 July 805 3,019 August 750 2,813 September 675 2,531 October 525 1,969 November 875 3,281 December 685 2,569 A) Using the high-low method, express the company’s utility costs as an equation where X represents the number of tables produced. Y=$ + x B) Predict the utility costs if 800 tables are produced. C) Predict the utility costs if 600 tables are produced.
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.
This cost data from Hickory Furniture is for the year 2017.
Hickory Furniture data
| Month | Numbers of Tables Produced | Factory Utility Expenses |
|---|---|---|
| January | 550 | $2,063 |
| February | 710 | 2,663 |
| March | 650 | 2,438 |
| April | 470 | 1,823 |
| May | 512 | 1,920 |
| June | 625 | 2,344 |
| July | 805 | 3,019 |
| August | 750 | 2,813 |
| September | 675 | 2,531 |
| October | 525 | 1,969 |
| November | 875 | 3,281 |
| December | 685 | 2,569 |
A) Using the high-low method, express the company’s utility costs as an equation where X represents the number of tables produced.
Y=$ + x
B) Predict the utility costs if 800 tables are produced.
C) Predict the utility costs if 600 tables are produced.
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