York Company is a machine shop that estimated overhead will be $84,000, consisting of 7,000 hours of direct labor. The cost to make Job 0325 is $60 in aluminum and two hours of labor at $30 per hour. During the month, York incurs $40 in indirect material cost, $150 in administrative labor, $290 in utilities, and $240 in depreciation expense. A. What is the predetermined overhead rate if direct labor hours are considered the cost driver? $fill in the blank 1 per direct labor hour B. What is the cost of Job 0325? $fill in the blank 2 C. What is the overhead incurred during the month? $fill in the blank 3
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.
York Company is a machine shop that estimated
A. What is the predetermined overhead rate if direct labor hours are considered the cost driver?
$fill in the blank 1 per direct labor hour
B. What is the cost of Job 0325?
$fill in the blank 2
C. What is the overhead incurred during the month?
$fill in the blank 3
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
