acct 302

For which of the following industries would job costing not be appropriate?

cereal production

Taylor Company uses normal costing and allocates manufacturing overhead using

machine hours. Below is the following data available for the year:

What is the manufacturing overhead allocation rate for the year?

Budgeted manufacturing overhead rate = budgeted manufacturing overhead/budgeted machine hours

What is the amount of underapplied or overapplied overhead for the year?

MOH allocation (normal costing) = Budg MOH rate x Actual activity, actual - applied

What is a disadvantage of using actual costing instead of normal costing?

Indirect costs are assigned at the end of the year when they are known

If manufacturing overhead is overapplied during the period, how will cost of goods sold, WIP, and FG change during the process of adjusting the overapplied manufacturing overhead?

Cost of goods sold, WIP, and FG will decrease when adjusted.

if overhead is underapplied

dr. MOH Applied dr. COGS cr. MOH control

if overhead is overapplied

dr. moh applied cr. cogs cr. MOH Control

If overhead is underapplied

Dr. MOH, WIP, FG, COGS, Cr. MOH control