TWE Consulting offers professional training programs. There are currently three consultants, Morg Freerman, John Shant and Parker Paulmer. Each consultant costs on average $35 per hour and takes approximately three business days to perform the training program. Assume each program and client is assigned only one consultant. The consultants are expected to work 7.5 hours per business day. Variable overhead costs are based on the amount of consulting hours. The predetermined overhead rate is $13.70 per consulting hour. For the upcoming period, the company expects 290 training programs. At the end of the period, the company incurred $141,750 in consultants' wages and $37,800 in variable overhead costs. There were 260 training programs and the consultants spent a total of 3,150 consulting hours to train the clients. Do not enter dollar signs or commas in the input boxes. Round your answer to 2 decimal places.
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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