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

2. 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

3. 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?

4. 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

5. 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