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 5.23E

1.

To determine

To calculate: The cost of standard job and special job under simple costing system

Given information:

2014,

Cost of supplies to standard job is $100.

Direct labor cost of standard job is $90.

Direct cost per job is $190 for standard job and $225 for special job (working note).

Overhead cost per job is $335.83 for standard job and $335.83 for special job (working note).

2.

To determine

To calculate: The cost of standard job and special job under activity based costing system

Given information:

Cost of supplies per job for standard job is $100 and for special job is $125.

Direct labor cost per job is $90 for standard job and $100 for special job.

Direct cost per job for standard job $190 and for special job is $225 (working note).

Overhead cost per job is $227.95 for standard job and $451.61 for special job(working note).

3.

To determine

To compare: The cost of the doors in requirement 1 and 2 and to find the reason for difference in the cost per unit of exterior and interior goods as per simple costing system and activity based costing system.

4.

To determine

To explain: The use of new cost information from activity based costing system.

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