1. Calculate the price per hour that Georgia Temps should charge based on Mason's proposal. 2. The marketing manager supplies the following information on demand levels at different prices: Required Price per Hour $16 17 18 Demand (Hours) TT 124,000 104,000 84,000 19 74,000 20 61,000 Georgia Temps can meet any of these demand levels. Fixed costs will remain unchanged for all the demand levels. On the basis of this additional information, calculate the price per hour that Georgia Temps should charge to maximize operating income. 3. Comment on your answers to requirements 1 and 2. Why are they the same or different?
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.
Cost-plus and market-based pricing. Georgia Temps, a large labor contractor, supplies contract labor to buildingconstruction companies. For 2017, Georgia Temps has budgeted to supply 84,000 hours of contract labor. Its variable
costs are $13 per hour, and its xed costs are $168,000. Roger Mason, the general manager, has proposed a cost-plus approach for pricing labor at full cost plus 20%.
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