Overapplied overhead - PowerPoint PPT Presentation

Chapter 4 - Job Order Costing

Chapter 4 - Job Order Costing. Group 9: Lin Wang Bichloan Nguyen Hank Liu Keye Su Jeff Tsai. Constructo is a manufacturer of furnishings for infants and children. The company uses a job cost system and employs a full absorption accounting method for cost accumulation.

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Solution for Ch 4

Solution for Ch 4. 4-46. No 3: Overapplied Overhead = $91,912.50 - $87,528 = $4,384.50 No 4: COGM = 146.000 No 5: Operating Income = 3.235 .

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PREDETERMINED OVERHEAD RATE / TUTORIALOUTLET DOT COM

Why do companies use a predetermined overhead rate rather than actual manufacturing overhead costs to apply overhead to jobs?

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