Looney Corp. applies overhead on the basis of machine hours. For 2024, Looney estimated $866,000 of overhead costs and 81,000 machine hours. Actual overhead incurred in 2024 was $843,200, and actual machine hours were 86,300. What was the amount of over- or underapplied overhead in 2024? If overapplied, enter as a positive number. If underapplied, enter as a negative number. Use at least two decimal places in your predetermined overhead rate.
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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