Direct Material Standard Mix Aranol 4,400 gallons Lendyl 15,600 Total 20,000 gallons Yield 16,000 gallons During March, the following actual production information was provided: Direct Material Actual Mix Aranol 74,000 gallons Lendyl 126,000 200,000 gallons 166,000 gallons Total Yield Standard Unit Price $5.00 per gallon 7.00 Standard Cost $22,000 109,200 x $131,200 Required: 1. Compute the direct materials mix and yield variances. In your computations, round the standard cost Mix variance Yield variance 2. Compute the total direct materials usage variance for Aranol and Lendyl. X
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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