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What is Job Order Costing Analysis and Calculations about?

Amesbury Construction uses a job-costing system to allocate assembly support costs to jobs. In 2011, budgeted assembly support costs were $8.3 million and actual costs were $6.52 million. The budgeted indirect rate was 5% and the actual rate was 4%. Normal and actual costing may differ in the job costs calculated. Normal costing uses budgeted rates while actual costing uses actual rates and costs. Amesbury may prefer normal costing to estimate costs before jobs are complete. ROW Company uses normal costing

Author

PASCHAL IBELE

Language

EN