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
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
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