You have been given the following information about the production of Tamarisk Co., and are asked to provide the factory manager with information for a meeting with the vice-president of operations: Standard Cost Card Direct materials (6.00 kg at $3.20 per kilogram) $19.20 Direct labour (0.70 hours at $4.50) 3.15 Variable overhead (0.70 hours at $3.20 per hour) 2.24 Fixed overhead (0.70 hours at $7.00 per hour) 4.90 $29.49 The following is a production report for the most recent period of operations: Variances Costs Total Standard Cost Price/ Rate Spending/ Budget Quantity/ Efficiency Volume Direct materials $374,400 $5,997 F $9,408 U Direct labour 61,425 2,990 U 5,850 U Variable overhead 43,680 $1,020 F ? Fixed overhead 95,550 410 F $14,000 U What was the actual cost per kilogram of raw materials?
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.
You have been given the following information about the production of Tamarisk Co., and are asked to provide the factory manager with information for a meeting with the vice-president of operations:
|
|
|||
|---|---|---|---|
|
Direct materials (6.00 kg at $3.20 per kilogram) |
$19.20 |
||
|
Direct labour (0.70 hours at $4.50) |
3.15 |
||
|
Variable |
2.24 |
||
|
Fixed overhead (0.70 hours at $7.00 per hour) |
4.90 |
||
|
$29.49 |
The following is a production report for the most recent period of operations:
|
Variances |
||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Costs |
Total |
Price/ Rate |
Spending/ |
Quantity/ |
Volume |
|||||||||
|
Direct materials |
$374,400 |
$5,997 |
F |
$9,408 |
U |
|||||||||
|
Direct labour |
61,425 |
2,990 |
U |
5,850 |
U |
|||||||||
|
Variable overhead |
43,680 |
$1,020 |
F |
? |
||||||||||
|
Fixed overhead |
95,550 |
410 |
F |
$14,000 |
U |
What was the actual cost per kilogram of raw materials?
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