Vocabulary
Job Order Costing
used for customized/unique products or services
Raw Materials Inventory
wood, paint, glass, metal
If the actual MOH cost is $27,850 and the applied MOH cost is $32,400, is the manufacturing overhead under- or overapplied? And by how much?
Overapplied, $4,550
Manufacturing Overhead
Any costs to the company that is not easily traced to a product
Job Order Products
construction projects, customized sweatshirts, cars
What is the predetermined MOH rate if the estimated MOH cost is $350,000, direct labor cost is $750,000, and direct labor hours is 35,000 hours?
$350,000/35,000= $10/direct labor hour
Work in Process Inventory
total cost of jobs that are in process at any given time
Manufacturing Overhead
rent, utilities, screws, manager salaries
Prepare the journey entry to transfer the manufacturing overhead account balance to cost of goods sold for the following information:
Actual Manufacturing Overhead Costs: $91,230
Applied Manufacturing Overhead Costs: $132,450
Debit | Credit
Cost of Goods Sold: | $41,220
Manufacturing Overhead: $41,220 |
Cost Driver
what the cost category is
Cost Driver
labor hours, units produced, machine hours
What is the applied manufacturing overhead if you have the following information:
Estimated Value | Actual Value
MOH Cost $465,000 | $765,000
Direct Labor Cost $150,000 | $185,000
Direct Labor Hour 25,250 hr | 27,250 hr
Machine Hour 7,500 hr | 8,500 hr
Predetermined MOH Rate: $465,000/150,000= $3.10/DLH
Applied MOH: $3.10 x 27,250 = $84,475