10026_021710_96 - -Normal Costing = using predetermined...

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Chapter 3 -Job Costing vs. Process Costing -Allocation of Overhead costs (Indirect) -At the end of the year, we measure actual labor hours and overhead costs without having to guess. -Change in activity and costs prevent calculating overhead costs monthly. We must minimize fluctuations in the year. -Timeliness and Fluctuation = Problems with Actual Costing
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Unformatted text preview: -Normal Costing = using predetermined overhead rate Estimated OH Cost (years) = Direct Labor Hours / $ / Machine Hours Estimated Base (year)-Control Account = sum of things put together (different jobs all together)-Anything in Work-in-Process must be associated with a job....
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