Cost Accounting (15th Edition)
Cost Accounting (15th Edition)
15th Edition
ISBN: 9780133428704
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
Question
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Chapter 5, Problem 5.33P

1.

To determine

Activity Based Costing:

Activity based costing is one of the methods of costing to identify the activities performed to manufacture a product and to allocate the overhead cost of resources or indirect cost to the related products.

Job order costing

Job order costing is one of the methods of costing to find out the cost of an individual job or the cost of batches of jobs in the manufacturing firm where different products or unique products are manufactured simultaneously. It is also known as job costing. Here the word job refers to a single or several units of different product or service.

To calculate: Allocation of overhead cost to each activity cost pool and to calculate the activity rate for each pool

2.

To determine

The cost of order 448200.

3.

To determine

To explain: Ability to price orders enhanced by activity based costing method and affect on price if T had used traditional costing method.

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