Under or overapplied overhead under normal costing

Assignment Help Financial Accounting

Reference no: EM13824101

To begin, select one of the following types of businesses:

Custom home builder

Auto repair shop

Accounting firm

Lawn service company

Television show production

Airplane built for the U.S. Air Force

Describe how your chosen business might use job order costing to account for its product(s) or service(s). Explain the types of costs that would be classified as direct versus indirect, variable versus fixed, and product versus period. Be sure to address the overhead allocation base that you would suggest for the company to use by presenting an example of how your type of business would account for overhead and prepare a sample journal entry to dispose of any under- or overapplied overhead under normal costing.

Reference no: EM13824101

Questions Cloud

As result of thorough physical inventory : As a result of a thorough physical inventory, Hastings Company determined that it had inventory worth $270,000 at December 31, 2010. This count did not take into consideration the following facts: Carlin Consignment store currently has goods worth $5..

Prepare the journal entries assuming no commercial substance : On May 1, 2012, Milkway Company decided to trade-in their used equipment (ovens, refrigerators, ect.) for new models at Luigi Inc. The old equipment was initially purchased for $120,000 in January 2010. At that time, the useful life was determined to..

Prepare the journal entries assuming commercial substance : Truck Company trades its used delivery trucks for new models at Greenwich GMC. The used trucks have a book value of $60,000 (original cost $140,000 less $80,000 accumulated depreciation). The new trucks have MSRP of $80,000. Prepare the journal entri..

Checking account statement for the month ended : Matrix Corporation has just received its checking account statement for the month ended September 30. The bank statement of account showed the following: What adjustments if any does she need to make in her check book? Why is it important for individ..

Under or overapplied overhead under normal costing : Be sure to address the overhead allocation base that you would suggest for the company to use by presenting an example of how your type of business would account for overhead and prepare a sample journal entry to dispose of any under- or overapplied ..

Explain how supply chain and macroeconomic environment : Which costing system would be more efficient when direct materials and direct labor costs are high, and overhead costs are low and why? Which costing system would be more efficient when direct labor costs and direct materials are low, and overhead is..

Production planned-batch-related overhead : Borck's entrerprises has the following production planned for the first quarter of next year: Each unit requires 3 hours of direct labor time at $12 per hour. Unit-related overhead is $10 per machine hour and each unit requires 1/2 machine hour. Batc..

Prepare flexible budget report-manufacturing overhead costs : Bill Graham and Larry Miller incorporated B&L Landscapes, Inc. on July 1, 2014. The business consists of lawn care and sprinkler system installations. In addition, they also sell two types of fertilizer. Prepare a flexible budget report showing the d..

Capital ratio-how should the waiver be dated in this case : Given current economic conditions and individual operating results, companies may not comply fully with lender restrictions on debt and, thus, fail to meet one of the debt covenant requirements (e.g., to maintain a certain working capital ratio). Wha..

User Account

All Pages