widgets for its customers. The company uses an activity-based costing system ts activity-based costing system. Activity Cost Pool Total Cost Assembling.. Job Support....... Customer support...... Other... $108708 $32142 $5045 $104630 Total Activity 16608 machine hours 1871 jobs 353 clients Not applicable company has provided the following dala The "Other" activity cost pool consists of costs of idle capacity & organization-sustaining costs. One particular customer, Victor Inc., requested 36 jobs during the year for a to 116 units, requiring a total of 196 machine hours. Each unit requires $0.68 in direct materials and $1.72 in direct labor. The customer was charged $2275 for these jobs. Using ABC, compute the activity rate for Customer support. Round ONLY your final answer to 2 decimal places.
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.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps