Sheridan is a trucking company. It provides local, short-haul, and long-haul services. It has developed the following three cost pools. Activity Cost Pools Loading and unloading Travel Logistics Cost Pools Loading/Unloading Travel Logistics $ $ $ LA Cost Drivers Number of pieces Kilometres driven Hours Calculate the activity-based overhead rates for each pool. (Round answers to 2 decimal places, e.g. 15.25.) Estimated Overhead Rate $ 77,000 387,000 65,520 per piece Estimated Use of Cost Driver per Activity per km driven per hour 77,000 516,000 2,600
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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