Calculation question on job costing method of accounting. How to fill in job cost allocation form with cost driver rate

Cost Driver Rate = Job Cost/Cost Driver Volume Total

Product A Job Cost - Material Purchase = Material Purchase Cost Driver Rate * Cost Driver Volume, substituting itemized calculations.

Calculate the cost driver rate:

Quality inspection: 4000/20=200

Order processing: 4000/40=100

Machine operation: 40000/1000=40

Adjustment preparation: 2000/10=200

Operation cost allocated to Product A:

200*5+100*30+40*200+200*6=13200

Cost per unit of operation: 13200/100=132

Cost per unit: 50+40+132=222

Cost Driver Concepts

Causes Implications for the Classification of Cost States

Traditional cost systems classify costs as fixed, variable, and semi-variable based on the costs and quantities of each. Such a treatment ignores the fact that costs can also vary with factors other than quantity, i.e., the notion of variability of costs. In fact, cost patterns are governed by cost drivers, and the first step in allocating costs to different products is to understand the nature of costs in order to identify the appropriate cost drivers. According to this concept, costs can be categorized into short-term variable costs and long-term variable costs.

Reference: Baidu Encyclopedia-Cost Drivers