1.
Simple Costing System:
Simple costing system is one of a method of costing to estimate the amount of allocating the overhead cost of resources to the associated product based on the manufacture of the total units of that product, machine and labor hour consumed to manufacture that product.
Activity Based Costing:
Activity based costing is one of the methods of costing to identify the activities performed to manufacture a product and to allocate the overhead cost of resources or indirect cost to the related products.
To calculate: The cost of an interior door and an exterior door under the simple costing system.
2.
To calculate: The cost of an interior door and an exterior door under the activity based costing system.
3.
To compare: The cost of the doors in requirement 1 and 2 and to find the reason for difference in the cost per unit of exterior and interior goods as per simple costing system and activity based costing system.
4.
To explain: The use of new cost information from activity based costing system.
Want to see the full answer?
Check out a sample textbook solution
Chapter 5 Solutions
COST ACCT-W/ACCESS >C< NON-MAJORS
- Given solution for General accounting question not use aiarrow_forwardWhat is the company's desired profit for the yeararrow_forwardJob costing- Trendex Company has the following data: direct labor $195,000, direct materials used $215,000, total manufacturing overhead $268,000, and beginning work in process $45,000. Compute total manufacturing costs.arrow_forward
- Iveron Biotech is evaluating its Dermacuredivision, an investment center. The division has a $75,000 controllable margin and $510,000 of sales. How much will Iveron's average operating assets be when its return on investment is 12%?arrow_forwardJack Co. is working on Job 417,which requires $16,200 of direct materials, $7,400 of direct labor, 720 direct labor hours, and 610 machine hours. Manufacturing overhead is computed at$15.00 per direct labor hour used and $12.50 per machine hour used. What is the total cost of Job 417?arrow_forwardWhat is the estimate amount of inventory on hand?arrow_forward
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education