bbrunfast
Feb 10, 2008, 02:31 PM
I am having a hard time understanding the difference between job costing, normal costing and actual costing. I have the following problem I am working on
For 2008 Dee's manufacturing uses machine hours as the only overhead cost allocation base. The accont records contain the following information
Manufacturing overhead costs-- Estimated $100,000
Manufacturing overhead costs-- Actual-----$120,000
Machine hours---------------------Estimated 20,000
Machine hours---------------------Actual 25,000
Using job costing the 2008 budgeted manufacturing overhead rate is?
a. $4.00
b. $4.80 120,000/25,000= $4.80
c. $5.00 100,000/20,000= $5.00
d. $6.00
I believe its either b or c but not sure which one.
For 2008 Dee's manufacturing uses machine hours as the only overhead cost allocation base. The accont records contain the following information
Manufacturing overhead costs-- Estimated $100,000
Manufacturing overhead costs-- Actual-----$120,000
Machine hours---------------------Estimated 20,000
Machine hours---------------------Actual 25,000
Using job costing the 2008 budgeted manufacturing overhead rate is?
a. $4.00
b. $4.80 120,000/25,000= $4.80
c. $5.00 100,000/20,000= $5.00
d. $6.00
I believe its either b or c but not sure which one.