Answer questions;
Differentiate between job costing and process costing and explain how a job costing system works.
How is job costing different in a service organization?
Give five examples of manufacturing overhead costs and explain why they are considered indirect costs?
What is the predetermined overhead allocation rate?
Provide some examples of an allocation base.
Explain how manufacturing overhead is allocated to jobs. Why is manufacturing overhead applied to products when product costs are used in making pricing decisions. Discuss the benefits of using a predetermined overhead rate instead of an actual overhead rate. Discuss one advantage and one disadvantage of prorating over-applied or under-applied overhead.
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