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Unformatted text preview: machine hours. Cost objects are objects (such as products, processes, departments, services, activities, etc.) whose costs need to be determined by management. Cost tracing relates specific costs to the objects that cause their incurrence. Direct costs are easily traceable to a cost object in a cost-effective, economically beneficial manner. Indirect costs cannot be easily traced to a cost object in a cost-effective, economically beneficial manner. Joint Costs are common costs incurred in the process of making two or more products. Predetermined overhead rates are determined before the actual overhead costs and actual cost driver are known. Formulas to Review Predetermined Factory Overhead Rate = Total Estimated Factory Overhead Costs/Estimated Activity (Cost Driver) Allocation rate = Total cost to be allocated/Cost driver...
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This note was uploaded on 03/31/2011 for the course ACCT 102 taught by Professor Wang during the Spring '11 term at Adelphi.
- Spring '11