ECONOMICS

Detailed explanation-1: -In a normal job-order costing system, actual factory overhead is applied at the end of the period. In a normal job-order costing system, factory overhead is applied using actual rates times actual input. In a normal job-order costing system, factory overhead is applied using predetermined rates times actual input.

Detailed explanation-2: -Job order costing is a costing method which is used to determine the cost of manufacturing each product. This costing method is usually adopted when the manufacturer produces a variety of products which are different from one another and needs to calculate the cost for doing an individual job.

Detailed explanation-3: -In job order costing, the allocation of overheads is done on the basis of an allocation base. This means that the cost accountants use a known cost as a proxy for allocating the unknown costs. For example, direct labor hours are known for the manufacturing of each product.

Detailed explanation-4: -A normal job-order costing system is a system that uses: Actual costs for direct materials and direct labor and estimated costs for overhead. Actual overhead costs are not assigned directly to jobs.

Detailed explanation-5: -A job-order costing system that relies on normal costing will: Assign actual direct materials and direct labor costs to jobs.