Company applies overhead to jobs using a predetermined overhead rate based on machine hours. At the beginning of the year, the company estimated that it would have 84,000 machine-hours and incur $350,000 in manufacturing overhead cost. For March: Raw materials purchased: $5000. Raw materials used in production: $2300 direct. Direct labor: $4000.Marketing expenses: $5600. Depreciation on the manufacturing facilities: $800. Actual machine-hours used during the month: 1,700 hr. The company made 8000 units and sold 2700 for price of $2 per unit. 1. What is the applied overhead company has for March 2. If Work in process have beginning balance of 0 and ending balance of 0, what is the gross profit for march
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.
Company applies
For March: Raw materials purchased: $5000. Raw materials used in production: $2300 direct. Direct labor: $4000.Marketing expenses: $5600. Depreciation on the manufacturing facilities: $800. Actual machine-hours used during the month: 1,700 hr. The company made 8000 units and sold 2700 for price of $2 per unit.
1. What is the applied overhead company has for March
2. If Work in process have beginning balance of 0 and ending balance of 0, what is the gross profit for march
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