Wyckam Manufacturing Incorporated provided the following cost formulas for its manufacturing costs: Fixed Cost per Month Cost per Machine- Hour Supplies Direct materials $ 5.60 Direct labor $ 42,300 $ 0.40 $1,600 $ 15,300 $ 11,300 $ 0.25 Utilities Depreciation Insurance For example, utilities should be $1,600 per month plus $0.25 per machine-hour. The company expects to work 4,000 machine-hours in June. Note the company's direct labor is a fixed cost. Required: Prepare the company's planning budget for June.
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.
![Exercise 9-8 (Algo) Planning Budget [LO9-1]
Wyckam Manufacturing Incorporated provided the following cost formulas for its manufacturing costs:
Fixed
Cost per
Month
Cost per
Machine-
Direct materials
Hour
$ 5.60
Direct labor
$ 42,300
Supplies
$ 0.40
$ 1,600
$ 0.25
$ 15,300
$ 11,300
Utilities
Depreciation
Insurance
For example, utilities should be $1,600 per month plus $0.25 per machine-hour. The company expects to work 4,000 machine-hours in
June. Note the company's direct labor is a fixed cost.
Required:
Prepare the company's planning budget for June.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdb393258-76b9-4b52-89cc-0941c3abc8ef%2Fa47e6d87-29d8-447d-ad61-b6077a3da894%2Faa4lq_processed.png&w=3840&q=75)
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