Top Right Brushes produces a premium hairbrush. Total manufacturing costs are $290,000 when 23,000 brushes are produced. Of this amount, total variable costs are $115,000. What are the total production costs when 34,000 hairbrushes are produced? Assume the same relevant range. Determine the formula, then calculate the total production costs. (Round intermediary calculations to the nearest cent and round your final answer to the nearest whole dollar.) Total variable costs at increased production + Total fixed costs Total production costs + =
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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