Week 6 (Job order costing) formulas

Question 1

PDR equation ?

Answer 1

PDR =
estimated manufacturing overhead costs / estimated activity level

Question 2

applied overhead equation ?

Answer 2

applied overhead =
PDR * actual activity

Question 3

Cost of goods manufactured equation refined ?

Answer 3

cost of goods manufactured =
beginning work in process + direct materials used + direct labor + applied overhead - ending work in process

Question 4

Conversion costs equation refinement ?

Answer 4

conversion costs =
direct labor + applied overhead