Christopher Nguyen 11:00 Chapter 3 Q1. Why aren’t actual overhead costs traced to jobs just as direct materials and direct labor cost are traced to jobs? Overhead costs are indirect costs making it difficult or impossible to trace, it also consists of many different things from grease to manager salary, and finally its output can be easily influenced by seasons or outside factors. Q3. What is the purpose of the job cost sheet in a job-order costing system? The job sheet helps organize each job by recording materials, labor, and overhead costs to that particular job. Job-order costing system is for creating many different products in each period. Q4. What is a predetermined overhead rate, and how is it computed? The predetermined overhead rate is an estimate of the overhead applied to a job. It is computed by dividing estimated total manufacturing overhead costs by estimated total units in the allocation base. Q7. Why do companies use predetermined overhead rates rater than actual manufacturing
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This note was uploaded on 01/27/2009 for the course ACCY 311 taught by Professor Corless during the Fall '07 term at San Jose State.