Weinsterin Inc. produces chemicals for large biotech companies. It has the following data for manufacturing overhead costs during August Variable Fixed Actual costs incurred $33,000 S17,500 Costs allocated to products $32,000 $13,800 Flexible budget: Budgeted input allowed for actual output produced x budgeted rate $32,000 $15,000 Actual input x budgeted rate $32,200 $15,000 Required Complete the table below. Variable Fixed 1. Rate variance 2 Efficiency variance 3. Production-volume variance 4. Flexible-budget variance 5. Underallocated (overallocated) manufacturing overhead
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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