job costing ________. a. is used when each unit course hero

What is job costing?

Job costing is a costing method used to determine the cost of specific jobs, which are performed according to the customer’s specifications. It is a basic costing method which is applicable where work consists of separate projects or contract jobs.

Why is job costing important?

Job costing provides the base for determining the cost of similar jobs to be undertaken in future as a part of future planning.

How does overhead allocation work?

The overhead allocation process for standard costs uses historical cost information to arrive at the standard rate per unit of activity and then allocate these amounts to jobs based on their units of activity.

How much of the factory overhead is sales?

Factory overheads are 80% of wages, office overheads are 25% of factory cost and selling and distribution overheads are 10% of the cost of production.

What industries use job costing method?

Generally, the application of job costing method is followed in industries such as printing press, automobile garage, repair workshops, shipbuilding, foundry, and other similar manufacturing units, which manufactures according to customer’s specific requirements. A business that applies costing method usually has the following characteristics:

What documents are used by the dispatching department as a control mechanism to carry out the dispatching functions?

Other documents: The other documents such as material requisition slips, tools and spares order, time tickets, inspection order etc. , are used by the dispatching department as a control mechanism to carry out the dispatching functions.

What is a manufacturing order?

Manufacturing or production order: This document authorizes the manufacturing or production department to produce a specified quantity of a product which constitutes the job.