Question
In: Accounting
Which product costing system distributes costs evenly across total production? Variable cost system Standard cost system...
Which product costing system distributes costs evenly across total production?
Variable cost system
Standard cost system
Process cost system
Job order cost system
Solutions
Expert Solution
Variable costing is a managerial accounting cost concept. Under this method, manufacturing overhead is incurred in the period that a product is produced. This addresses the issue of absorption costing that allows income to rise as production rises.
In accounting, a standard costing system is a tool for planning budgets, managing and controlling costs, and evaluating cost management performance. A standard costing system involves estimating the required costs of a production process.
Process costing is a term used in cost accounting to describe one method for collecting and assigning manufacturing costs to the units produced. Processing cost is used when nearly identical units are mass produced.
Job order costing or job costing is a system for assigning manufacturing costs to an individual product or batches of products. Generally, the job order costing system is used only when the products manufactured are sufficiently different from each other.
ekkarill92 answered 1 year agoRelated Solutions
Vermeillen Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production...
Vermeillen Corporation uses a standard costing system in which
variable manufacturing overhead is assigned to production on the
basis of the number of machine setups. The following data pertain
to one month's operations:
Variable manufacturing overhead cost incurred: $70,000
Total variable manufacturing overhead variance: $4,550
Favorable
Standard machine setups allowed for actual production:
3,550
Actual machine setups incurred: 3,500
The standard variable overhead rate per machine setup is:
Multiple Choice
$18.44
$21.30
$21.00
$20.00
A company produces a product which has a standard variable production cost of $8 per unit...
A company produces a product which has a standard variable
production cost of $8 per unit made up as
follows:
$
Per Unit
Direct
material $4.60
(2kg X $2.30 per kg)
Direct labour
$2.10
(0.7 hours x $3.00 per hour)
Variable overhead
$1.3
Fixed manufacturing costs are treated as period costs. The
following information is available for the period just ended,
Variable manufacturing cost of sales (at standard
cost) $263,520
Opening stock of finished goods (at standard
cost) $120,800
Closing stock of finished...
From the following information on costs of production, calculate Total Fixed Cost, Total Variable Cost, Average...
From the following information on costs of production, calculate
Total Fixed Cost, Total Variable Cost, Average Variable Cost, and
Marginal Cost.
I also need to graph the total cost curves as well as the
average and marginal cost curves.
TC = TFC + TVC so for Q=1 TC=30, assume TFC=20 so TVC=10
(20+10=30); continue with logic about
FC, it is independent of output, so it would be an incremental 20
with each additional level of output, TVC for each Q...
Variable costing versus absorption costing. The Garvis Company uses an absorption-costing system based on standard costs....
Variable costing versus absorption costing. The Garvis Company
uses an absorption-costing system based on standard costs. Variable
manufacturing cost consists of direct material cost of $4.50 per
unit and other variable manufacturing costs of $1.50 per unit. The
standard production rate is 20 units per machine-hour. Total
budgeted and actual fixed manufacturing overhead costs are
$840,000. Fixed manufacturing overhead is allocated at $14 per
machine-hour based on fixed manufacturing costs of
$840,000÷60,000$840,000÷60,000 machine-hours, which is the level
Garvis uses as...
Bronfenbrenner Co. uses a standard cost system for its single product in which variable overhead is...
Bronfenbrenner Co. uses a standard cost system for its single
product in which variable overhead is applied on the basis of
direct labor hours. The following information is given:
Standard costs per unit:
Raw Materials (1.5 grams x $16 per gram) . . . . . . . . . $
24.00
Direct Labor (0.75 hours x $8 per hour) . . . . . . . . . . .
. $ 6.00
Variable Overhead (0.75 x $3 per...
Edney Company employs a standard cost system for product costing. The per-unit standard cost of its...
Edney Company employs a standard cost system for product
costing. The per-unit standard cost of its product is:
Raw materials
$
14.50
Direct labor (2 direct labor hours × $8.00 per hour)
16.00
Manufacturing overhead (2 direct labor hours × $11.00 per
hour)
22.00
Total standard cost per unit
$
52.50
The manufacturing overhead rate is based on a normal capacity
level of 600,000 direct labor hours. (Normal capacity is defined as
the level of capacity needed to satisfy average...
Edney Company employs a standard cost system for product costing. The per-unit standard cost of its...
Edney Company employs a standard cost system for product
costing. The per-unit standard cost of its product is:
Raw materials
$
14.00
Direct labor (2 direct labor
hours × $8.00 per hour)
16.00
Manufacturing overhead (2
direct labor hours × $10.00 per hour)
20.00
Total standard cost per
unit
$
50.00
The manufacturing overhead rate is based on a normal capacity
level of 600,000 direct labor hours. (Normal capacity is defined as
the level of capacity needed to satisfy average...
Edney Company employs a standard cost system for product costing. The per-unit standard cost of its...
Edney Company employs a standard cost system for product
costing. The per-unit standard cost of its product is:
Raw materials
$
14.00
Direct labor (2 direct labor hours × $8.00 per hour)
16.00
Manufacturing overhead (2 direct labor hours × $10.00 per
hour)
20.00
Total standard cost per unit
$
50.00
The manufacturing overhead rate is based on a normal capacity
level of 600,000 direct labor hours. (Normal capacity is defined as
the level of capacity needed to satisfy average...
dney Company employs a standard cost system for product costing. The per-unit standard cost of its...
dney Company employs a standard cost system for product costing.
The per-unit standard cost of its product is:
Raw materials
$
14.00
Direct labor (2 direct labor hours × $8.00 per hour)
16.00
Manufacturing overhead (2 direct labor hours × $10.00 per
hour)
20.00
Total standard cost per unit
$
50.00
The manufacturing overhead rate is based on a normal capacity
level of 600,000 direct labor hours. (Normal capacity is defined as
the level of capacity needed to satisfy average...
No. of Products Total Variable Costs, $ Total Costs $ Average Fixed Cost $ Average Variable...
No. of Products
Total Variable Costs, $
Total Costs $
Average Fixed Cost $
Average Variable Cost $
Average Total Cost $
Marginal Cost$
0
0
1
12
2
20
3
24
4
27
5
40
6
65
7
98
Assume that the fixed cost is $80, calculate the above costs in
the table and explain the difference between average total costs
and marginal costs.
In a graph illustrate the Average Total Cost and Marginal Cost
Curves, explain their relationship....
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