the controller for wolfe machining has established the following overhead cost pools and cost drivers: overhead cost pool budgeted overhead cost cost driver budgeted activity machine setups $240,000 number of setups 200 setups material handling $90,000 units of raw material 60,000 units quality control inspections $48,000 number of inspections 1,200 inspections other overhead costs $160,000 machine hours 20,000 machine hours order no. 715 has the following production requirements: machine setups: 7 raw material: 11,200 inspections: 16 machine hours: 850 required: a. compute the total overhead that should be assigned to order no. 715 by using activitybased costing. b. suppose that wolfe were to use a single, predetermined overhead rate based on machine hours. compute the rate per hour and the total overhead assigned to order no. 715. c.discuss the merits of an activity based costing system in comparison with a traditional costing system.
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.
the controller for wolfe machining has established the following
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