The Perry Products Company needs to predict the labor cost in producing made-to-order mugs. The following production information is available: Year Mugs Produced Labor-Hours Labor Cost 2012 1,150 850 $ 8,400 2013 1,600 975 $ 9,000 2014 1,100 800 $ 7,900 2015 2,100 1,150 $10,700 2016 1,500 950 $ 9,700 2017 1,300 875 $ 9,900 Select the appropriate independent variable for estimating labor cost. Explain the reason for your selection. Develop an equation for labor costs using the high-low method of cost estimation, and predict total costs for an annual usage of 2,500 labor hours. I need the part of " and predict total costs for an annual usage of 2,500 labor hours." answered it was left off when i first asked this question
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.
- The Perry Products Company needs to predict the labor cost in producing made-to-order mugs. The following production information is available:
|
Year |
Mugs Produced |
Labor-Hours |
Labor Cost |
|
2012 |
1,150 |
850 |
$ 8,400 |
|
2013 |
1,600 |
975 |
$ 9,000 |
|
2014 |
1,100 |
800 |
$ 7,900 |
|
2015 |
2,100 |
1,150 |
$10,700 |
|
2016 |
1,500 |
950 |
$ 9,700 |
|
2017 |
1,300 |
875 |
$ 9,900 |
- Select the appropriate independent variable for estimating labor cost. Explain the reason for your selection.
- Develop an equation for labor costs using the high-low method of cost estimation, and predict total costs for an annual usage of 2,500 labor hours.
I need the part of " and predict total costs for an annual usage of 2,500 labor hours." answered it was left off when i first asked this question
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