305 Chapter 5

Question 1

What are the steps when asked to Calculate the cost of the job using a Single Rate System (traditional).

Answer 1

1) Calculate PMOH = Total Estimated overhead/expected activity
2) AMOH = PMOH * Actual Activity Used
3) Job Cost Sheet

DM Used
DL
AMOH
Total Product Cost
Units Produced
—————————-
Product Cost/Unit

Question 2

What are the steps when asked to Calculate the cost of the job using a Multi-Rate System (Activity Based).

Answer 2

1) Divide: Find PMOH for every activity -> Estimated OH/Expected Activity. REPEAT FOR EVERY ACTIVITY

2) Multiply : Find AMOH for EVERY ACTIVITY -> Step 1 * Rate = MOH applied

3) Add: Add it all up for total MOH applied
4) Job Cost Sheet

DM Used
DL
AMOH
Total Product Cost
Units Produced
—————————-
Product Cost/Unit

Question 3

Machine hours is also known as [. ]

Answer 3

Expected activity

Question 4

When asked to calculate the total unit cost, what do you make?

Answer 4

4) Job Cost Sheet

DM Used
DL
AMOH
Total Product Cost
Units Produced
—————————-
Product Cost/Unit