TisNTat, Inc., manufactures and sells two products: Product V5 and Product X3. Data concerning the expected production of each product and the expected total direct labour-hours (DLHs) required to produce that output appear below: Expected Production Direct Labour-Hours Per Unit Total Direct Labour-Hours Product V5 900 5.0 4,500 Product X3 1,000 3.0 3,000 Total direct labour-hours 7,500 The company's total manufacturing overhead is $372,695. If the company allocates all of its overhead based on direct labour-hours, what is the amount of overhead assigned to product V5? Question 11 options: 1) $42,021 2) $46,690 3) $186,348 4) $223,605
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.
TisNTat, Inc., manufactures and sells two products: Product V5 and Product X3. Data concerning the expected production of each product and the expected total direct labour-hours (DLHs) required to produce that output appear below:
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Expected Production
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Direct Labour-Hours Per Unit
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Total Direct Labour-Hours
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Product V5
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900
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5.0
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4,500
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Product X3
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1,000
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3.0
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3,000
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Total direct labour-hours
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7,500
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The company's total manufacturing
Question 11 options:
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