Wadding Corporation applies manufacturing overhead to products on the basis of standard machine-hours. For the most recent month, the company based its budget on 5,000 machine-hours. Budgeted and actual overhead costs for the month appear below: Original Budget Based on 5,000 Machine-Hours Actual Costs Variable overhead costs: Supplies Indirect labor Fixed overhead costs: Supervision Utilities $ 12,500 46,000 21,100 7,300 $ 13,230 8,300 50,250 20,740 7,310 Factory depreciation Total overhead cost $ 95,200 $100,140 The company actually worked 5,020 machine-hours during the month. The standard hours allowed for the actual output were 5,010 machine-hours for the month. What was the overall variable overhead efficiency variance for the month? 8,610
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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