tunng obs. ompany has two departments: Assembly and Sanding. The Assembly Department uses a departmental verhead rate of $50 per machine hour, while the Sanding Department uses a departmental overhead rate of 25 per direct labor hour. Job 603 used the following direct labor hours and machine hours in the two epartments: Assembly Department 7 Sanding Department actual results Direct labor hours used 5 Machine hours used 9 6 he cost for direct labor is $25 per direct labor hour and the cost of the direct materials used by Job 603 is 1,600. w much manufacturing overhead would be allocated to Job 603 using the departmental overhead rates?
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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