Trivor, Inc., produces a special line of toy racing cars. Trivor produces the cars in batches. To manufacture each batch of cars, Trivor must set up the machines and molds. Setup costs are fixed batch-level costs. In the long run, number of setup-hours is the cost driver of set up costs. A separate Setup Department is responsible for setting up machines and molds for each style of car. The following information pertains to 2020: (Click the icon to view the information.) Read the requirements. Requirement a. Calculate the spending variance for fixed setup overhead costs. (Label the variance as favorable (F) or unfavorable (U).) The spending variance for fixed setup overhead costs is Requirements Calculate the following: a. The spending variance for fixed setup overhead costs b. The budgeted fixed setup overhead rate c. The production-volume variance for fixed overhead setup costs Print Done F U *** < Data table Units produced and sold Batch size (number of units per batch) Setup-hours per batch Total fixed setup overhead costs Print $ Actual Amounts Done Static-budget Amounts 13,000 260 5.4 12,150 $ 15,000 250 5 12,000 X
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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