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ACCT346 Job Order Costing Discussions

ACCT346 Job Order Costing Discussions

Week 2 All Students Posts 40 Pages

The job cost sheet is used to accumulate the three product costs: direct material, direct labor, and factory overhead. Discuss the source documents for determining these amounts (that is, where do we get these numbers, and how we arrive at the overhead?). Why is overhead the most difficult to assign?…

Problem #1 for EVERYONE to try to work on :
Bonnie Company uses a predetermined overhead rate of $8.00 per machine hour. 60,000 machine hours were worked this year and actual overhead costs of $465,000 were incurred.
What was the amount of under-applied or over-applied overhead?
Indicate if it is over-applied or under applied. WHY?