Unit-based product costing assigns direct labor, direct materials, and overhead to products. Direct materials and direct labor are assigned using direct tracing. Assignment of overhead costs, however, relies on driver tracing and perhaps allocation. Unit-based costing first assigns overhead costs to a functional unit, creating plant or departmental cost pools. Next these pooled costs are assigned to products using predetermined overhead rates based on unit-level drivers. Unit-level drivers measure the demands placed on ........?.......Unit-level activities are those that are performed each and every time:......?........ . From the dropdown below, select all unit-level drivers:.........?........... Goodmark Company produces two products: scented and regular birthday cards. Goodmark uses a plantwide rate based on direct labor hours. The estimated and actual data for the coming year are provided below: estimated overhead $720,000 Expected activity(direct labor hours) 180,000 actual activity(direct labor hours) Scented cards 20000 regualr cards 160000 Units produced Scented cards 20000 regular cards 200000 Required: 1. Calculate the following: a. The predetermined overhead plantwide rate (round to the nearest cent): $ per direct labor hour b. Applied overhead for each product (round to the nearest dollar): Scented: $ Regular: $ c. Overhead per unit for each product (round to the nearest cent): Scented: $ Regular: $
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.
Unit-based product costing assigns direct labor, direct materials, and
. From the dropdown below, select all unit-level drivers:.........?...........
Goodmark Company produces two products: scented and regular birthday cards. Goodmark uses a plantwide rate based on direct labor hours. The estimated and actual data for the coming year are provided below:
estimated overhead $720,000
Expected activity(direct labor hours) 180,000
actual activity(direct labor hours)
Scented cards 20000
regualr cards 160000
Units produced
Scented cards 20000
regular cards 200000
Required:
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1. |
Calculate the following: |
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a. |
The predetermined overhead plantwide rate (round to the nearest cent): $ per direct labor hour |
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b. |
Applied overhead for each product (round to the nearest dollar): |
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c. |
Overhead per unit for each product (round to the nearest cent): |
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