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Understanding DM Pricing and Costing Methods

Incentives are calculated based on actual direct materials (DM), direct labor (DL), and overhead costs compared to budgeted amounts using the high-low method. Cost per equivalent unit is determined using a hard benchmark to evaluate performance and calculate incentives.

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roti eater
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15 views1 page

Understanding DM Pricing and Costing Methods

Incentives are calculated based on actual direct materials (DM), direct labor (DL), and overhead costs compared to budgeted amounts using the high-low method. Cost per equivalent unit is determined using a hard benchmark to evaluate performance and calculate incentives.

Uploaded by

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

Incentives

DM price

Cost per unit= actual DM+ Actual DL+ budgeted Overhead

High Low method

Cost per equivalent unit

Hard benchmark

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