df5e27a950a861242c40e97e370e6154.ppt
- Количество слайдов: 10
6 Job-Order Costing and Accounting for Overhead © 2007 Pearson Education Canada Slide 6 -1
Product Costing Job Order Process Costing Allocate costs to products that are readily identifiable Average costs over large number of nearly identical units Common in construction, print shops, unique goods Common in chemical, textiles, lumber, glass, food processing Accumulate costs for specific jobs Accumulate costs by departments Produce for sale Produce for inventory © 2007 Pearson Education Canada Slide 6 -2
Job-Order Costing Direct Material Requisition Sheet Labour Time Ticket Overhead Application Rate © 2007 Pearson Education Canada Job Cost Sheet Job #963 12 units Direct materials $460. 00 Direct labour 267. 50 Applied factory overhead Total cost $907. 50 Unit cost ($907. 50 / 12 ) 180. 00 $75. 625 Slide 6 -3
Job-Costing Cost Flows • Apply material, labour and overhead costs to work in process • As goods as produced costs flow to finished goods inventory • When sold, costs shift to cost of goods sold Direct Material Inventory Work in Process Inventory Finished Goods Inventory Cost of Goods Sold Use Buy Material Production Sales Labour Costs Overhead Control Account Overhead Costs © 2007 Pearson Education Canada Over / under applied overhead (at year end) Slide 6 -4
Accounting for Factory Overhead Application (Overhead Absorption) • Allocation of overhead costs to products Budgeted Factory Overhead Rate • Calculated at the beginning of the year and used to apply overhead to products throughout the year Six Steps in Applying Overhead 1. Select a cost driver for overhead 2. Prepare a budget for yearly overhead costs and yearly volume of the cost driver 3. Calculate the budgeted factory overhead rate as Overhead rate = budgeted total overhead / budgeted cost driver 4. Obtain data on the actual cost driver 5. Apply overhead to products 6. At year end, account for difference between actual overhead costs and applied overhead costs © 2007 Pearson Education Canada Slide 6 -5
Over / Under Application of Overhead Actual overhead • a mixed cost function with variable and fixed costs • Y = F + VX Applied overhead • a variable cost function • Applied overhead = overhead rate x actual driver $ Volume $ Applied Overhead Actual Overhead • Overapplied: Applied > Actual • Underapplied: Applied < Actual • Dispose of over/under applied overhead at year end Volume © 2007 Pearson Education Canada Slide 6 -6
Fixed Manufacturing Overhead & Absorption Costing • Firms use a overhead rate to smooth the application of overhead to work in process and determine "full" product costs Budgeted overhead application rate Actual Fixed Overhead = Budgeted total factory Budgeted total of cost driver Applied Fixed Overhead Budgeted Fixed Overhead Spending Variance Rate x Actual Volume Production-Volume Variance Over / Under Applied Overhead • difference between actual and applied fixed overhead relates to: • spending more or less than expected • producing more or less than expected © 2007 Pearson Education Canada Slide 6 -7
Budgeted and Applied Fixed Overhead $ $ Volume Budgeted Fixed Overhead © 2007 Pearson Education Canada Volume Applied Fixed Overhead Slide 6 -8
Production Volume Variance in Absorption Costing • Change in net income due to not producing the amount of output expected when we determined the P. O. R. at the beginning of the year Production = Actual Expected x Budgeted Volume Variance volume overhead rate $ Applied Overhead Actual Overhead Budgeted Overhead Volume of activity © 2007 Pearson Education Canada Slide 6 -9
Dell’s Value Chain and ABC System R&D Product Design Production Marketing Distribution Customer Service © 2007 Pearson Education Canada Indirect costs are allocated to product lines based on ABC cost drivers Other indirect costs + profit Individual Job Direct material $xxx Direct labour xxx Applied overhead xxx Total job cost xxx Markup xxx Job price $xxx Slide 6 -10
df5e27a950a861242c40e97e370e6154.ppt