Week 2, LO 5 Demo - Week 2 Systems Design Job-Order Costing...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Week 2: Systems Design: Job-Order Costing Week 2 Skill Building Demonstration Problem 5 Apply Overhead Cost to Work in Process using a predetermined overhead rate. Learning Objective 5 Applying Manufacturing Overhead Manufacturing overhead costs are assigned to Work in Process by using a predetermined overhead rate. The predetermined overhead rate is calculated by dividing the estimated total manufacturing overhead cost for the year by the estimated total amount of the allocation base. Nonmanufacturing Costs Nonmanufacturing costs should not be reported in the Manufacturing Overhead account. Nonmanufacturing costs include all selling and administrative costs. It is important to remember that these costs have no affect on product costs. Definitions Assume that Popowits Pants Factory’s predetermined overhead rate is $8.00 per direct labor hour. During the month of December, 800 direct labor hours were used to make dress pants and 640 direct labor hours were used to casual pants.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern