[The following information applies to the questions displayed below.] In December 2012, Infovision established its predetermined overhead rate for movies produced during year 2013 by using the following cost predictions: overhead costs, $1,800,000, and direct labor costs, $500,000. At year end 2013, the company's records show that actual overhead costs for the year are $1,608,800. Actual direct labor cost had been assigned to jobs as follows. Movies completed and 400,000 $4 released Movies still in production 50,000 Total actual direct labor $450,000 cost Exercise 15-14 Part 2&3 2&3.Enter the overhead costs incurred and the amounts applied to movies during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied (and the amount) during the year. Factory Overhead Applied overhead Actual overhead Overapplied overhead Applied overhead
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![[The following information applies to the questions displayed below.]
In December 2012, Infovision established its predetermined overhead rate for movies
produced during year 2013 by using the following cost predictions: overhead costs,
$1,800,000, and direct labor costs, $500,000. At year end 2013, the company's records
show that actual overhead costs for the year are $1,608,800. Actual direct labor cost had
been assigned to jobs as follows.
Movies completed and
400,000
$4
released
Movies still in production
50,000
Total actual direct labor
$450,000
cost
Exercise 15-14 Part 2&3
2&3.Enter the overhead costs incurred and the amounts applied to movies during the
year using the predetermined overhead rate and determine whether overhead is
overapplied or underapplied (and the amount) during the year.
Factory Overhead
Applied overhead
Actual overhead
Overapplied overhead
Applied overhead](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9c371247-74ac-400b-bc7d-96d516bb0e38%2F28e343ef-b334-437f-b793-986531d93a24%2Fjvxnj9h_processed.jpeg&w=3840&q=75)
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