Actual Costing: Actual costing is a method of cost accounting that records the cost on the actual basis, means cost of labor, material and overhead are recorded at their actual value. The analysis of actual cost is important to reduce wastage at workplace. Normal Costing: In cost accounting, the accountant finds production cost that is based on the estimated price of input that is multiplied by the actual quantity of material and other input used by the company. To compute: The actual and budgeted manufacturing overhead rates.

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Answer 1

Question

Chapter 4, Problem 4.17E

1.

To determine

Actual Costing:

Actual costing is a method of cost accounting that records the cost on the actual basis, means cost of labor, material and overhead are recorded at their actual value. The analysis of actual cost is important to reduce wastage at workplace.

Normal Costing:

In cost accounting, the accountant finds production cost that is based on the estimated price of input that is multiplied by the actual quantity of material and other input used by the company.

To compute: The actual and budgeted manufacturing overhead rates.

2.

To determine

To compute: The cost of job by (a) actual costing and by (b) normal costing.

3.

To determine

The under or over allocated manufacturing overhead under normal costing and explain the treatment of under or over allocated manufacturing over head under actual costing.

4.

To determine

To explain: The managers of D products prefer normal costing.

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Question

Chapter 4, Problem 4.17E

1.

To determine

Actual Costing:

Actual costing is a method of cost accounting that records the cost on the actual basis, means cost of labor, material and overhead are recorded at their actual value. The analysis of actual cost is important to reduce wastage at workplace.

Normal Costing:

In cost accounting, the accountant finds production cost that is based on the estimated price of input that is multiplied by the actual quantity of material and other input used by the company.

To compute: The actual and budgeted manufacturing overhead rates.

2.

To determine

To compute: The cost of job by (a) actual costing and by (b) normal costing.

3.

To determine

The under or over allocated manufacturing overhead under normal costing and explain the treatment of under or over allocated manufacturing over head under actual costing.

4.

To determine

To explain: The managers of D products prefer normal costing.

Expert Solution & Answer

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Answer 3

Question

Chapter 4, Problem 4.17E

1.

To determine

Actual Costing:

Actual costing is a method of cost accounting that records the cost on the actual basis, means cost of labor, material and overhead are recorded at their actual value. The analysis of actual cost is important to reduce wastage at workplace.

Normal Costing:

In cost accounting, the accountant finds production cost that is based on the estimated price of input that is multiplied by the actual quantity of material and other input used by the company.

To compute: The actual and budgeted manufacturing overhead rates.

2.

To determine

To compute: The cost of job by (a) actual costing and by (b) normal costing.

3.

To determine

The under or over allocated manufacturing overhead under normal costing and explain the treatment of under or over allocated manufacturing over head under actual costing.

4.

To determine

To explain: The managers of D products prefer normal costing.

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Answer 4

Question

Chapter 4, Problem 4.17E

1.

To determine

Actual Costing:

Actual costing is a method of cost accounting that records the cost on the actual basis, means cost of labor, material and overhead are recorded at their actual value. The analysis of actual cost is important to reduce wastage at workplace.

Normal Costing:

In cost accounting, the accountant finds production cost that is based on the estimated price of input that is multiplied by the actual quantity of material and other input used by the company.

To compute: The actual and budgeted manufacturing overhead rates.

2.

To determine

To compute: The cost of job by (a) actual costing and by (b) normal costing.

3.

To determine

The under or over allocated manufacturing overhead under normal costing and explain the treatment of under or over allocated manufacturing over head under actual costing.

4.

To determine

To explain: The managers of D products prefer normal costing.

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Answer 5

Chapter 4, Problem 4.17E

1.

To determine

Actual Costing:

Actual costing is a method of cost accounting that records the cost on the actual basis, means cost of labor, material and overhead are recorded at their actual value. The analysis of actual cost is important to reduce wastage at workplace.

Normal Costing:

In cost accounting, the accountant finds production cost that is based on the estimated price of input that is multiplied by the actual quantity of material and other input used by the company.

To compute: The actual and budgeted manufacturing overhead rates.

2.

To determine

To compute: The cost of job by (a) actual costing and by (b) normal costing.

3.

To determine

The under or over allocated manufacturing overhead under normal costing and explain the treatment of under or over allocated manufacturing over head under actual costing.

4.

To determine

To explain: The managers of D products prefer normal costing.

Answer 6

Chapter 4, Problem 4.17E

1.

To determine

Actual Costing:

Actual costing is a method of cost accounting that records the cost on the actual basis, means cost of labor, material and overhead are recorded at their actual value. The analysis of actual cost is important to reduce wastage at workplace.

Normal Costing:

In cost accounting, the accountant finds production cost that is based on the estimated price of input that is multiplied by the actual quantity of material and other input used by the company.

To compute: The actual and budgeted manufacturing overhead rates.

Answer 7

Chapter 4, Problem 4.17E

1.

To determine

Actual Costing:

Actual costing is a method of cost accounting that records the cost on the actual basis, means cost of labor, material and overhead are recorded at their actual value. The analysis of actual cost is important to reduce wastage at workplace.

Normal Costing:

In cost accounting, the accountant finds production cost that is based on the estimated price of input that is multiplied by the actual quantity of material and other input used by the company.

To compute: The actual and budgeted manufacturing overhead rates.

Answer 8

2.

To determine

To compute: The cost of job by (a) actual costing and by (b) normal costing.

Answer 9

2.

To determine

To compute: The cost of job by (a) actual costing and by (b) normal costing.

Answer 10

3.

To determine

The under or over allocated manufacturing overhead under normal costing and explain the treatment of under or over allocated manufacturing over head under actual costing.

Answer 11

3.

To determine

The under or over allocated manufacturing overhead under normal costing and explain the treatment of under or over allocated manufacturing over head under actual costing.

Answer 12

4.

To determine

To explain: The managers of D products prefer normal costing.

Answer 13

4.

To determine

To explain: The managers of D products prefer normal costing.

Answer 14

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Answer 17

Ch. 4 - Define cost pool, cost tracing, cost allocation,...Ch. 4 - How does a job-costing system differ from a...Ch. 4 - Why might an advertising agency use job costing...Ch. 4 - Describe the seven steps in job costing.Ch. 4 - Give examples of two cost objects in companies...Ch. 4 - Describe three major source documents used in...Ch. 4 - What is the advantage of using computerized source...Ch. 4 - Give two reasons why most organizations use an...Ch. 4 - Distinguish between actual costing and normal...Ch. 4 - Describe two ways in which a house-construction...

To compute: The cost of job by (a) actual costing and by (b) normal costing.

The under or over allocated manufacturing overhead under normal costing and explain the treatment of under or over allocated manufacturing over head under actual costing.

To explain: The managers of D products prefer normal costing.

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