Answer:
Classifications :
- Direct Costs
- Indirect Costs
- Product Costs
- Period Costs
- Variable Costs
- Fixed Costs
Reasons for classifying costs :
- Inventory valuation
- Profit Measurement
Explanation:
The first step in Cost Classification if to Identify the Cost object.The Cost object is the unit or entity for which determination of cost is required.
By observing the cost accumulating on the cost object we would identify two types of costs :
- Direct Cost - Costs that can be traced on the cost object
- Indirect Cost - Costs that can not be directly traced on the cost object
Another category used to classify costs is whether or not they will be included in product valuation.
- Product Cost - Attached to Product and included in valuation
- Period Cost - Not attached to product and thus not included in product valuation
Lastly the Costs Behaviors bring about different classifications as follows :
- Variable Costs
- Fixed Costs
- Semi-fixed Costs
- Semi - Variable Costs
Answer: Overhead cost assigned to Job GH7 is $300.
Explanation:
Given that,
Direct materials placed into production = $5000
Direct labor hours worked = 75 hours
Direct labor rate per hour = $35
Machine hours worked = 200 hours
Factory overhead was budgeted = 100000
direct labor hours were estimated = 25000
Job GH7 consists = 60 units
Predetermined rate = 
= 
=$4
Hence,
overhead cost assigned to Job GH7 = Direct labor hours worked × Predetermined rate
= 75 × 4
=$300
No 0.75 is greater because it ends in a 5 when 0.73 ends in a 3. 5>3
Answer:
$60
Explanation:
For computing the target cost, first we have to determine the profit per unit which is shown below:
= Selling price × return on sales percentage
= $80 × 25%
= $20
Now the target cost would be
= Selling price per unit - profit per unit
= $80 - $20
= $60
All other information which is given is not relevant. Hence, ignored it
