Job Order Costing Flashcards
1
Q
Predetermined OH rate
A
= estimated annual Overhead cost / estimated annual activity
2
Q
Applied Overhead
A
= Predetermined OH rate * Actual activity usage
3
Q
Overhead variance
A
= Applied OH - Actual OH
4
Q
Adjusted COGS
A
= unadjusted COGS +/- Overhead variance
Note:
- if Applied OH > Actual OH, then overhead is undersupplied
- if Applied OH < actual OH, then overhead is over applied
