40 types of product cosng systems process costing job

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Unformatted text preview: ional labor- hour basis that includes both attorney and paraprofessional hours. Following is information for 2011: Budget Actual Indirect costs $270,000 $300,000 Annual salary of each attorney $100,000 $110,000 Annual salary of each paraprofessional $ 29,000 $ 30,000 Total professional labor- hours 50,000 dlh 60,000 dlh What is the budgeted indirect- cost rate per professional labor- hour? $270,000/ 50,000 = $5.40 Types of Product Cos)ng Systems Process Costing Job-order Costing v༇  A company produces many units of a single product. v༇  One unit of product is indistinguishable from other units of product. v༇  The identical nature of each unit of product enables assigning the same average cost per unit. Types of Product Cos)ng Systems Process Costing Job-order Costing v༇  A company produces many units of a single product. Example companies: v༇  1.One unit of product is indistinguishable from Weyerhaeuser (paper manufacturing) ther units of product. 2.oReynolds Aluminum (refining aluminum ingots) 3.TCoca-Cola (mixing and bottling beverages)enables he identical nature of each unit of product v༇  assigning the same average cost per unit. Types of Product Cos)ng Systems Process Costing Job-order Costing v༇  Many different products are produced each period. v༇  Products are manufactured to order. v༇  The unique nature of each order requires tracing or allocating costs to each job, and maintaining cost records for each job. Types of Product Cos)ng Systems Process Costing v༇  v༇  v༇  Job-order Costing Many different products are produced each period. Example companies: roducts are manufactured to order. 1.PBoeing (aircraft manufacturing) he unique nature of (large scale construction) 2.TBechtel Internationaleach order requires tracing or llocating costs to each job, production) 3.aWalt Disney Studios (movieand maintaining cost records for each job. Comparing Process and Job- Order Cos)ng Job-Order Number of jobs worked Cost accumulated by Average cost computed by Process Many Indi...
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This document was uploaded on 02/16/2014 for the course ACC 311 at Cal Poly Pomona.

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