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QUESTION 3 3.1. There are two distinct types of cost accounting systems: job order costing systems and process costing systems. How does management decide whether
QUESTION 3 3.1. There are two distinct types of cost accounting systems: job order costing systems and process costing systems. How does management decide whether to use a job order costing system or a process costing system in any given manufacturing situation? Explain briefly. 3.2. Job order cost system Century Pools designs and builds custom pools and spas to the customer's order and uses a job order system. The predetermined overhead rate for the current year is 60% of direct labor cost. At the end of the current year, Century Pools' direct labor cost totaled $170,000 and actual overhead amounted to $105,000. A pool built for F. Becker required $32,000 of direct materials and $6,500 of direct labor. It was completed in May of the current year. (a) Compute the total cost of the Becker pool as shown on the job cost sheet at date of completion. (b) Compute the amount of under-or over-applied manufacturing overhead for Century's operations for the current year
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