COST ACCOUNTING
JOB ORDER COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Predetermined overhead rate = Actual manufacturing overhead ÷ Actual machine-hours
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Predetermined overhead rate = Actual manufacturing overhead ÷ Estimated machine-hours
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Predetermined overhead rate = Estimated manufacturing overhead ÷ Estimated machine-hours
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Predetermined overhead rate = Estimated manufacturing overhead ÷ Actual machine-hours
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Detailed explanation-1: -(C) Predetermined overhead rate = Estimated manufacturing overhead ÷ Estimated machine-hours 41.
Detailed explanation-2: -The answer is a) Estimated total factory overhead costs divided by estimated activity base. The predetermined overhead rate formula is: Predetermined overhead rate = Estimated overhead costs / Estimated allocation base.
Detailed explanation-3: -Predetermined overhead rate = Actual total manufacturing overhead costs ÷ Estimated total units in the allocation basePredetermined overhead rate = Estimated total manufacturing overhead costs ÷ Actual total units in the allocation base.
Detailed explanation-4: -Multiply the payroll day rate by the amount of time you estimate you’ll need to complete the job. If you’ll rely on subcontractors for work your company doesn’t complete itself, factor those costs into your total labor costs for the job. It can help to get an estimate from each of these contractors.
Detailed explanation-5: -The basic flow of costs in a job-order system begins by recording the costs of material, labor, and manufacturing overhead. a. Direct material and direct labor costs are debited to the Work In Process account.