MA-garrison
C2 Job-order costing : calculating unit product costs
Lo
-compute a predetermined overhead rate
-apply overhead cost to jobs using a predetermined overhead rate
-compute the total cost and the unit product cost of a job using a plantwide predetermined overhead rate
-compute the total cost and the unit product cost of a job using multiple predetermined overhead rates
-use activity-based absorption costing to compute unit product costs
-understand the implications of basing the predetermined overhead rate om activity at capacity rather than on estimated activity for the period
In absorption costing, all manufacturing costs, both fixed and variable are assigned to units of product- units are said to fully absorb manufacturing costs
Job-Order costing is used in situations where many different products, each with individual and unique features, are produced each period.