Job Costing - Account for overhead using predetermined rates

5 important questions on Job Costing - Account for overhead using predetermined rates

Events that lead to manufacturing overhead being recorded:

  • Preparing financial statement (which work-in-process-inventory needs to be assessed)
  • Completing a job whose costs needs to be recorded

Job cost sheet bestaat uit de volgende onderdelen:

  • Basic information about the job
  • Costs recorded for the job
  • Total costs for the job and extra notes

Two manufacturing overhead accounts:

  1. Manufacturing overhead control
  2. Applied manufacturing overhead
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Manufacturing overhead control

Used to allocate overhead costs to jobs based on the actual overhead expenses.

Standard costs method

Advantage: faster information
Disadvantage: not sure

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