Landkirk computes its overhead rates using practical volume, which is 3,400 units. The actual results for the year are as follows: ( SEE PICTURE ATTACHED) ADDITIONAL INFO Units produced: 3,100 Actual yield: 4,650 kg Direct materials purchased: Almond 2,800 kg @ P56.00; Chocolate 4,000 @ P57.00 Direct materials used: Almond 2,500 kg; Chocolate 3,600 kg Direct labor: Assembly 1,800 hours @ 40.00; Packaging 1,500 hours @ P40.00 Variable overhead: P65,000 Fixed overhead: P105,000 Material price variance Material quantity variance Material mix variance Material yield variance
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.
Landkirk computes its
( SEE PICTURE ATTACHED)
ADDITIONAL INFO
- Units produced: 3,100
- Actual yield: 4,650 kg
- Direct materials purchased: Almond 2,800 kg @ P56.00; Chocolate 4,000 @ P57.00
- Direct materials used: Almond 2,500 kg; Chocolate 3,600 kg
- Direct labor: Assembly 1,800 hours @ 40.00; Packaging 1,500 hours @ P40.00
- Variable overhead: P65,000
- Fixed overhead: P105,000
- Material price variance
- Material quantity variance
- Material mix variance
- Material yield variance
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