MGMT 30B Study Guide - Quiz Guide: American Airlines, Flight Attendant
8 Jun 2016
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Methods of accumulating product costs: absorption costing. If many different types of products are being produced each period. There are products that are custom ordered: how does it work? i. All costs are traced to each job itself c. Raw materials that can be directly traced to the product iphone: glass, processor, camera, battery, aluminum, led light, wiring. Direct materials cost = quantity of materials used x per unit cost of materials used ii. All traceable costs related to product itself iphone: design, physically putting it together, factory supervisor. Direct labor cost = quantity of labor used x per labor unit cost of labor used iii. Estimate the total allocation base required for production (hours) We need an allocation base because we can"t trace it. Estimated total variable manufacturing overhead = estimated variable manufacturing overhead cost per unit of allocation base x estimated total amount of allocation base o.
