BUS 254 Lecture : Bus 254 chapter 3 notes.doc

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 254
• Professor: A G

Document Summary

Job-order costing system = used when company produces different products each period: unit cost = total cost of each job / number of units produced in that job. Job cost sheet = form prepared to each separate job that records materials, labour, and overhead costs charged to the job: under direct material, it shows req no. and amount , used just as materials are issued. Direct labour under job cost sheet contains ticket , hours , and. Por = estimated total manufacturing overhead cost / estimated total units in allocation base: overhead application = process of charging manufacturing overhead cost to job cost sheets and to the work in process account. Overehead applied = por x amount of allocation base incurred (actual) x 27 direct labour hours = overhead applied: the resulting is entered in the job cost sheet amount column, along with hours and rate , the above is called the normal cost system.