Tag Archives for " applied overhead "

Allocating overhead variances to work-in-progress, finished goods, and cost of goods sold

When overhead is overapplied or underapplied, there are two different ways to allocated the variance. In the previous post, we allocated all of the variance to cost of goods sold. However, that is not

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Applied Overhead Versus Actual Overhead

In the previous post, we discussed using the predetermined overhead rate to apply overhead to jobs. This applied overhead is an approximation. What about actual spending for overhead costs? Let’s

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Job Costing and Overhead Allocation

We have previously discussed cost objects and assigning costs to cost objects. One object that is used frequently by job costing. Job costing is a cost allocation method used by companies that make custom

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