Chapter 17: 17-1SE-c (page 938)
Distinguishing between job order costing and process costing
Would the following companies most likely use job order costing or process costing?
c. A manufacturer of luxury yachts
A manufacturer of specialty wakeboards is most likely to use a job-order costing system.
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If a company incurred \(5,250 in actual overhead costs and allocated \)5,575 to jobs, was the overhead overallocated or underallocated? By how much?
Comparing actual to allocated overhead
Columbus Enterprises reports the following information at December 31, 2018:
Manufacturing overhead
3,500 | 50,600 |
19,000 | |
34,500 |
Requirements
1. What is the actual manufacturing overhead of Columbus Enterprises?
Following is a list of cost system characteristics and sample companies. Match each to either job order costing or process costing.
e. A computer repair service that makes service calls to homes.
Question: How does the use of direct and indirect materials in production affect the accounts?
Rosco Company estimates the company will incur $80,750 in overhead costs and 4,750 direct labor hours during the year. Actual direct labor hours were 4,600. Calculate the predetermined overhead allocation rate using direct labor hours as the allocation base, and prepare the journal entry for the allocation of overhead.
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