To begin, select one of the following types of businesses:

Custom home builder

Auto repair shop

Accounting firm

Lawn service company

Television show production

Airplane built for the U.S. Air Force

Describe how your chosen business might use job order costing to account for its product(s) or service(s). Explain the types of costs that would be classified as direct versus indirect, variable versus fixed, and product versus period. Be sure to address the overhead allocation base that you would suggest for the company to use by presenting an example of how your type of business would account for overhead and prepare a sample journal entry to dispose of any under- or overapplied overhead under normal costing.