2003 major assg - Devlin Manufacturing Co has utilized job...

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Devlin Manufacturing Co has utilized job costing methods to his company since there aredifferent models of products manufactured. On this system, the cost of direct materials anddirect labour hour can be directly discovered to each jobs and for the manufacturing overheadwas counted by using the predetermined overhead rate. On this company, Devlin applied thenormal job costing to estimate the overhead. Calculating the cost of job with this methodbegins with adding the actual cost of materials and labour hours operated with the appliedoverhead. Overhead applied can be counted by multiplying the actual activity of allocationbased with the predetermined overhead. This rates can be very useful for pricing and biddingas well as be criterion to supervising the cost of overhead (Horngren et al., 1997).The reporting objective of using this system is to provide the forecasted price for customersto decide whether they still want to buy the product or services. Customers can come any

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Devlin, Devlin Manufacturing Co

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