Use the following information to answer the questions. Month Machine Hours Electricity Costs $ 5,100 $ 1,450 $ 6,575 $ 5,000 $ 5,750 $ 4,375 $ 5,965 $ 2,350 $ 3,925 $ 7,060 $ 3,025 $ 5,400 2,620 January February 580 4,080 2,000 2,880 1,750 3,430 March April May June July August September 940 1,570 4,320 1,210 2,740 October November December Required: 1. Estimate the fixed cost of electricity per month and the variable cost of electricity per machine hour using the high-low method. not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answe nearest whole dollar amount.) Variable cost of electricity per machine hour
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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