Provide an example that shows variable costing is divided among different activities, and that each activity has its own pre-determined variable overhead criterion. Explain your example in detail
Provide an example that shows variable costing is divided among different activities, and that each activity...
Explain the activity-based costing income statement and provide a hypothetical example of activity-based costing income statement in a manufacturing enterprise. Provide in-text citations and explain your example in detail
Is variable costing income statement applicable to service operations? If so, provide a hypothetical example of variable costing income statement in a service operation. Explain your example in detail and provide in-text citations.
Please briefly explain the job order costing income statement and provide a hypothetical example of job order costing income statement in a manufacturing enterprise. Provide in-text citations and explain your example in detail. The period manufacturing costs of a company is comprised of $2,000,000 in direct materials, $1,000,000 in direct labor, and $500,000 in overhead, resulting in 7,000 units of product. Manufacturing operations is consisted of two processes, machining and assembly. Machining takes up 40% of direct materials, 60% of...
: Different costing methods provide companies with different options for categorizing and calculating costs. Managers and cost accountants should understand the differences between costing methods so that they can choose and properly implement the method that best suits their needs for decision making. For this short paper, you will compare the characteristics of job costing and process costing methods and give examples of when and why each might be used. You will also address the use and benefits of costing...
Activity-Based Costing Maritime Marine Company has total estimated factory overhead for the year of $1,028,400, divided into four activities: fabrication, $444,800; assembly, $192,400; setup, $127,200; and inspection, $264,000. Maritime manufactures two types of boats: a speedboat and a bass boat. The activity-base usage quantities for each product by each activity are as follows: Fabrication Assembly Setup Inspection Speedboat 1,000 dlh 1,700 dlh 40 setups 80 inspections Bass boat 2,200 900 80 400 3,200 dlh 2,600 dlh 120 setups 480 inspections...
Activity-Based Costing Maritime Marine Company has total estimated factory overhead for the year of $955,700, divided into four activities: fabrication, $390,000; assembly, $192,000; setup, $115,200; and inspection, $258,500. Maritime manufactures two types of boats: a speedboat and a bass boat. The activity-base usage quantities for each product by each activity are as follows: Fabrication Assembly Setup Inspection Speedboat 1,100 dlh 1,400 dlh 40 setups 120 inspections Bass boat 1,900 1,000 80 350 3,000 dlh 2,400 dlh 120 setups 470 inspections...
Activity-Based Costing Maritime Marine Company has total estimated factory overhead for the year of $1,025,100, divided into four activities: fabrication, $444,000; assembly, $149,100; setup, $162,000; and inspection, $270,000. Maritime manufactures two types of boats: a speedboat and a bass boat. The activity-base usage quantities for each product by each activity are as follows: Fabrication Assembly Setup Inspection Speedboat 900 dlh 1,400 dlh 60 setups 100 inspections Bass boat 2,100 700 120 350 3,000 dlh 2,100 dlh 180 setups 450 inspections...
Explain job order costing and activity-based costing income statements in general terms. Prepare income statement in both job order costing and activity-based costing formats for a hypothetical case. Your example should include at least three activities and at least two products. If you do both correctly the operating income in both statements should be identical. Explain the initial assumptions and the calculations in detail. The question is complete
Mastery Problem: Activity-Based Costing (Advanced) Activity-Based Costing Traditionally, Overhead cost: Sometimes referred to as "factory overhead," this is an indirect cost that is not directly tied to the production of units, yet nonetheless must be built into product cost in order to appropriately price it. Examples are managerial salaries, rent expense, setup costs, and property taxes.overhead costs are assigned based arbitrarily on the rate of either Direct labor: This is a labor cost directly associated with the production of goods...
The last step in activity-based costing is to
identify the cost driver that has a strong correlation to the
activity cost pool.
assign overhead costs to products, using overhead rates
determined for each cost pool.
identify and classify the activities involved in the
manufacture of specific products, and allocate overhead to cost
pools.
compute the activity-based overhead rate per cost driver.