Valhalla Company manufactures small table lamps and desk lamps. The following shows the activities per product: Units Setups Inspections Assembly (dlh) Small table lamps 8,000 10,000 32,000 8,000 Desk lamps 16,000 30,000 14,000 46,000 Use the following information prepared by Valhalla Company. Activity Total Activity-Base Usage Budgeted Activity Cost Setups 40,000 $160,000 Inspections 46,000 230,000 Assembly (dlh) 54,000 324,000 i need the activity rates for each activity and the activity based factory rate overheas per unit for both products
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.
Valhalla Company manufactures small table lamps and desk lamps. The following shows the activities per product:
| Units | Setups | Inspections | Assembly (dlh) | |
| Small table lamps | 8,000 | 10,000 | 32,000 | 8,000 |
| Desk lamps | 16,000 | 30,000 | 14,000 | 46,000 |
Use the following information prepared by Valhalla Company.
|
Activity
|
Total
Activity-Base Usage |
Budgeted
Activity Cost |
| Setups |
40,000
|
$160,000
|
| Inspections |
46,000
|
230,000
|
| Assembly (dlh) |
54,000
|
324,000
|
i need the activity rates for each activity
and the activity based factory rate overheas per unit for both products
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