Chapter16podcast - Over head utility costs power costs...

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Direct labor: cost of labor traced to . hands on workers, on the floor, machine operators. Overhead- indirect materials – glue, staples Supervisors , security guards, security guard – manufacturing overhead General administration: advertising, salries of CEO – NOT MANUFACTURING, NOT PRODUCT UNIT COST, They are period costs Direct labor and Overhead – work in process
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Unformatted text preview: Over head: utility costs, power costs Higher in winter, that is unfair. Overhead needs to be estimated, how do we know. We will use normal calculations Debit in work process, credit overhead Debit overhead with actual overhead costs. Credit overhead. Overapplied or underapplied COST OF GOODS SOLD – DISPOSING UNDERAPPLIED OVERAPPLIED OVERHEAD...
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