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Answer:
B is the correct option.
Explanation:
Product costing refers to the cost incurred for creating a product. It includes the materials, labor, factory overhead and consumable production supplies. It can also be defined as the labor cost required for delivering the service and in this case, its cost also includes the costs related to compensation, payroll taxes, and employee benefits. The cost of a product on a unit basis is calculated by adding the cost of total direct labor, materials, consumable supplies and total allocated overhead divided by the total number of units.
it is the person analysis
reason-
a person analysis is the analysis in whch we study the behaviour of the employees it helps us to identify the employees who lacks skills or need training.
the producer in this case sujid is gaining a little more money because then when the profit is increased he will get a little less money because then the people will buy it but the money will be less for the producer(s)
Answer:
MW Company
Activity rate for order process = $54,120/660
= $82 per order
Explanation:
a) Data and Calculations:
Production = 16,500 units
Direct labor = 19,800 hours
Machine hours = 21,450 hours
No. of orders = 660
No. of shipments = 165
Order-processing cost pool = $54,120
Shipping cost pool = $14,025
Assembly cost pool = $71,280
Activity rate for order process = $54,120/660
= $82 per order
b) MW Company uses an activity-based costing system to identify its activities into cost pools and assign the cost of each activity pool to the products and services according to their actual consumption of the activities. The activity-based costing technique provides a more accurate method for determining the costs of products and services. As a more accurate method for pricing decisions than other traditional methods, activity-based costing technique increases management's understanding of overheads and cost drivers and makes activities that are costly and non-value adding to become more visible, allowing managers to reduce or eliminate them, because these activities add costs to the production system.
