HIST 1402 Lecture Notes - Lecture 5: Fixed Cost, Multiple Choice, Activity-Based Costing
Document Summary
20 multiple choice and true/false question x 3 points each. Choose 3 of 4 problems (details below) x 10 points each. What types of companies might use this method: allocating costs to the specific item that caused that cost to incur. The total cost of a job in a job-order costing system consists of what three costs: direct materials, direct labor, manufacturing overhead. 4-3 when computing the cost of a job, is actual overhead or applied overhead used: applied. Is the moh that is computed before the period begins. It is used to apply overhead cost to jobs throughout the period. 4-5 what are the benefits of using an allocation base and a predetermined overhead rate: helps calculate the cost of products while they are still being produced. 4-6 what considerations should be made when choosing the allocation base (hint: machines vs. people): mostly mh or lh. It depends on what the product is made with.
