MANAGERIAL ACCOUNTING W/ACCESS
MANAGERIAL ACCOUNTING W/ACCESS
5th Edition
ISBN: 9781266245619
Author: Noreen
Publisher: MCG
Question
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Chapter 3, Problem 3.21P

1.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead. Absorption costing is used to calculate the cost of product while taking indirect and direct expense into account. Activity based costing assign the cost of all the activity of the organization according to their actual consumption

To compute: Predetermine overhead rate with direct labor hour as the allocation base and manufacturing cost applied to job A and job B.

2.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead. Absorption costing is used to calculate the cost of product while taking indirect and direct expense into account. Activity based costing assign the cost of all the activity of the organization according to their actual consumption

To compute: Predetermine overhead rate with machine hour as the allocation base and manufacturing cost applied to job A and job B.

3.

To determine

Introduction: Job costing is a technique of determine the cost of a manufacturing job rather than the process of the job. Manufacturing overhead is applied to product or job order is determined as predetermined overhead. Absorption costing is used to calculate the cost of product while taking indirect and direct expense into account. Activity based costing assign the cost of all the activity of the organization according to their actual consumption

The adverse effect of plant allocation on company’s pricing decision.

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