Job Costing, Overhead Calculation and Flow of Costs Chapter Three Job Costing, Overhead Calculation and Flow of Costs

What do you know? Is the account Debited (D) or Credited (C)? Raw Materials Purchased Actual Overhead WIP- Materials Requisitioned Applied Overhead Finished Goods – Job is finished WIP – Job is finished COGS – Job is sold Finished Goods – job is sold

Overhead Rate Calculation If overhead costs are estimated at $400,000 and the Driver: Direct Labor costs ($) is estimated at $200,000, What is the predetermined overhead rate? What if the driver was machine hours of 100,000. What is the predetermined overhead rate?

If the rent is $80,000 and $60,000 is for the factory where does the $20,000 go? A. WIP B. OH C. S&A D. FG

Overhead application If actual overhead is 100 and applied is 97 is it A. Overapplied B. Underapplied What account is used to zero the overhead account if the balance is small? A. Finished Goods B. Cost of Goods Sold C. Work in Process