Ventura uses a just-in-time (JIT) manufacturing system for all its materials, components, and products. The master budget of the company for June called for use of 11,000 square feet of materials, while the flexible budget for the actual output of the month had 10,000 square feet of materials at a standard cost (SP) of $9.60 per square foot. Company records show that the actual price paid (AP) for the materials used in June was $9.50 per square foot, and that the direct materials purchase-price variance for the month was $1,040. The materials usage (quantity) variance for June was: Multiple Choice $3,800 unfavorable. $3,840 unfavorable. $5,700 unfavorable. $5,760 unfavorable. $8,560 favorable.
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.
Ventura uses a just-in-time (JIT) manufacturing system for all its materials, components, and products. The
The materials usage (quantity) variance for June was:
-
$3,800 unfavorable.
-
$3,840 unfavorable.
-
$5,700 unfavorable.
-
$5,760 unfavorable.
-
$8,560 favorable.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
