COST ACCOUNTING
MANUFACTURING OVERHEAD
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is a form used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job.
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It is used to track manufacturing overhead costs to specific jobs.
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It is used by management to understand how direct costs affect profitability.
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It is a daily form that management uses for tracking worker productivity on which employee raises are based.
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Detailed explanation-1: -Answer and Explanation: The correct answer is a. It is a form used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job.
Detailed explanation-2: -A job cost sheet is a compilation of the actual costs of a job. The report is compiled by the accounting department and distributed to the management team, to see if a job was correctly bid. The sheet is usually completed after a job has been closed, though it can be compiled on a concurrent basis.
Detailed explanation-3: -In a job-order costing system, a job-cost sheet is used to record all manufacturing costs. These costs include direct material, direct labor and manufacturing overhead.
Detailed explanation-4: -Which of the following statement is correct with regard to job costing? Job costing differs from most other types of costing system because each cost unit is a job, and no two jobs are exactly the same. Each job is costed separately.
Detailed explanation-5: -Costs from the materials requisition sheet and time tickets are recorded on the job cost sheet. Overhead is allocated from the manufacturing overhead account to the individual jobs and recorded on the job cost sheet. Each job has its own job cost sheet, showing the materials, labor, and overhead for each job.