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PC Example

The document provides budgeted, actual, standard, and normal costing information for snowboards and skateboards. It includes direct labor, direct material, overhead, units produced, total costs, and per unit costs for snowboards and skateboards under each costing method. The total actual overhead costs were $16 million, compared to a budgeted $15 million.

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Waleed J.
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55 views9 pages

PC Example

The document provides budgeted, actual, standard, and normal costing information for snowboards and skateboards. It includes direct labor, direct material, overhead, units produced, total costs, and per unit costs for snowboards and skateboards under each costing method. The total actual overhead costs were $16 million, compared to a budgeted $15 million.

Uploaded by

Waleed J.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Product Costing Example

Budget
Snowboards Skateboards

Direct Labor $3,000,000 $4,500,000

Direct Material $5,000,000 $6,000,000

Units 1,000,000 units 1,500,000 units

Total budgeted overhead costs are $15,000,000 allocated


base is direct labor dollars.
Actual
Snowboards Skateboards

Direct Labor $3,200,000 $5,270,000

Direct Material $5,600,000 $5,950,000

Units 800,000 units 1,700,000 units

Total actual overhead costs were $16,000,000.


Standard Costing
Snowboards Skateboards

Direct Labor

Direct Material

Overhead

Units

Total cost

Per Unit cost


Standard Costing
Snowboards Skateboards

Direct Labor $3,000,000 $4,500,000

Direct Material $5,000,000 $6,000,000

Overhead 15,000/(3,000+4,500)*3,000,000= 15,000/(3,000+4,500)*4,50


6,000,000 0,000=
9,000,000

Units 1,000,000 units 1,500,000 units

Total cost 14,000,000=3000+5000+6000 19,500,000=4500+6000+90


00

Per Unit cost 14 13


Actual Cost
Snowboards Skateboards

Direct Labor

Direct Material

Overhead

Units

Total cost

Per Unit cost


Actual Cost
Snowboards Skateboards

Direct Labor $3,200,000 $5,270,000

Direct Material $5,600,000 $5,950,000

Overhead 16,000/(3,200+5,270)*3,200,000= 16,000/(3,200+5,270)*5,270,


6,044,864 000=
9,955,136

Units 800,000 units 1,700,000 units

Total cost 14,844,864=3200+5600+6044.864 21,175,136=5270+5950+9955


.136

Per Unit cost 18.55608 12.45596


Normal Costing
Snowboards Skateboards

Direct Labor

Direct Material

Overhead

Units

Total cost

Per Unit cost


Normal Costing
Snowboards Skateboards

Direct Labor $3,200,000 $5,270,000

Direct Material $5,600,000 $5,950,000

Overhead 15,000/(3,000+4,500)*3,200,000= 15,000/(3,000+4,500)*5,270,00


6,400,000 0=
10,540,000

Units 800,000 units 1,700,000 units

Total cost 15,200,000=3200+5600+6400 21,760,000=5270+5950+10540

Per Unit cost 19 12.8

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