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18 Cards in this Set
- Front
- Back
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Absorption Costing
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A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in a cost product. p89
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Allocation Base
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A document that shows the quantity of each type of direct material required to make a product. p96
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Cost Driver
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A factor, such as machine hours, beds occupupied, computer time or flight-hours, that causes overhead costs. p96
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Job Cost Sheet
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A form prepared for a job that records the materials, labor, and manufacturing overhead costs charges to that job. p92
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Job-order Costing
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A costing system used in situations where many different products, jobs or services are produced each period.p89
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Materials Requisition Form
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A document that specifies the type and quantity of materials to be drawn from the storeroom and that identifies the job that will be charged for the cost of those materials. p91
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Multiple Predeterminded Overhead Rates (POHR)
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A costing system with multiple OH costs pools and a different POHR for each csot pool, rather than a single POHR for the entire company. Each production may be treated as a seterate OH cost pool. p113
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Normal Cost System
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A costing system in which OH costs are applied to a job by multiplying a POHR by the actual amount of the allocation base incurred by the job. p95
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Overapplien Overhead
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A credit balance in the MOH account that accures when the amount of OH cost applied to WIP exceeds the amount of OH cost actually incurred during the period. p109
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Overhead Application
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The process of charging MOH cost to a job cost sheet and WIP account. p95
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Plantwide Overhead Rate
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A single POHR that is used throughtout the plant. p113
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Predetermined Overhead Rate (POHR)
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A rate used to charge MOH cost to jobs that is established in advance for each period.
POHR = Estimated Total MO cost for the period / Estimated total amount of the allocation base for the period. p94 |
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Process Costing
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A costing system used in situations where single, homogeneous product is prodecrd for long periods of time. p89
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Time Ticket
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A document that is used to recorf the amount of time an employee spends on various activities. p93
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underapplied Overhead
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A debit balance in the MOH account that occurs when the amount of OH cost actually incurred exceeds the amount of OH cost applied to WIP during the period. p109
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Unit Product Cost
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= total manucaturing cost / total units produced
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Difficultied with MOH
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1 - It is an indirect cost
2 - consists of many different items 3 - Because of fixed costs in MOH, total MOH costs tend to remain relatively constant from one period to the next even though the number of units produced can fluctuate widely. |
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Under or over applied MOH account
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1 - Close to COGS or
2 - Allocated among the WIP, Finished Goods, and COGS accounts |
