Irene Manufacturing uses a predetermined overhead allocation rate based on direct labor cost. At the beginning of the year, the company estimated total manufacturing overhead costs at $1,020,000 and total direct labor costs at $820,000. In June, Job 711 was completed. The details of Job 711 are shown below. Direct materials cost $21,500 Direct labor cost $10,000 Direct labor hours 400 hours Units of product produced 200 units How much was the cost per unit of finished product? (Round any percentages to two decimal places and your final answer to the nearest cent.)
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.
Irene Manufacturing uses a predetermined overhead allocation rate based on direct labor cost. At the beginning of the year, the company estimated total
Direct materials cost $21,500
Direct labor cost $10,000
Direct labor hours 400 hours
Units of product produced 200 units
How much was the cost per unit of finished product? (Round any percentages to two decimal places and your final answer to the nearest cent.)
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