Vandalay Industries manufactures two products: toasters and blenders. The annual production and sales of toasters is 2,100 units, while 1,700 units of blenders are produced and sold. The company hours its to direct labor hours per require 0.75 The estimated overhead for the period is $148.315. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools Expected activity Activity cost pool Setup costs Estimated overhead cost $8.585 Toasters 205 batches Blenders 420 batches OA $56 45 per engineering hour OB $17.37 per engineering hour OC. $40.90 per engineering hour OD $13.74 per engineening hour. Engineering costs Maintenance $71,980 880 engineering hours costs $67,750 2.825 direct labor hours $146.315 Total The cost pool activity rate for Engineering Costs would be closest to (Round all answers to two decimal places) Total 625 batches 880 engineening hours 1,275 direct labor hours 1.760 engineering hrs 3.900 direct labor hours Time Remaining 01 46.57 Next
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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