Juztine Company produces a single type of necklace being sold for P 25 per unit. The following information was made available: Unit sales (P 25 per unit) 63,000 Material usage 75,000 pounds Material cost P7.2 per pounds Labor hours 10,000 hours Labor cost P30 per hour What is the operational partial productivity of Direct Material? • 0.840 • 6.300 • 0.117 • 0.210 • None of the above
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.
Unit sales (P 25 per unit) 63,000
Material usage 75,000 pounds
Material cost P7.2 per pounds
Labor hours 10,000 hours
Labor cost P30 per hour
What is the operational partial productivity of Direct Material?
Step by step
Solved in 3 steps with 2 images
