Accounting Chapter 3

all manufacturing costs, fixed and variable, assigned to units of product

used in companies that produce many units of a single product for long periods

Unit product cost = total manufacturing cost / total units produced

used in situations where many different products are produced each period.

is a document that lists the type and quantity of each type of direct material needed to complete a unit of product.

Specifies the type and quantity of materials to be drawn from the storeroom and identifies the job that will be charged for the cost of materials.

a form prepared for a job that records the materials, labor, and manufacturing overhead costs charged to that job

is a measure such as direct labor hours, or machine hours that is used to assign overhead costs to products and services

POH = Estimated total manufacturing overhead cost / estimated total amount of the allocation base POH = OH$ / DLH

Overhead applied to a particular job = predetermined OH rate X amount of the allocation base incurred by the job

Applied overhead = POH * Actual DLH