Baker Furniture Company provided the following manufacturing costs for the month of June Direct labor costs $300,000 169,000 Direct materials costs Equipment depreciation (straight-line) 14,400 Factory insurance 5,700 Factory manager's salary 8.200 Janitor's salary 14,900 Packaging costs 18,000 Property taxes on the factory 16,300 tuke Dalivode ka A. $546,500 B. $44,600 or $53.800 Direct labor costs Direct materials costs Equipment depreciation (straight-line) $300,000 169,000 14,400 Factory insurance 5,700 Factory manager's salary 8.200 Janitor's salary 14,900 Packaging costs 18,000 Property taxes on the factory 16,300 From the above information, calculate Baker's total fixed costs. UD. $44,0UU OC. $53.800 OD. $59.500
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.
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