question archive 4-18 Job costing, normal and actual costing
4-18 Job costing, normal and actual costing
Subject:FinancePrice: Bought3
4-18 Job costing, normal and actual costing. Anderson Construction assembles residential houses. It uses a job-costing system with two direct-cost categories (direct materials and direct labor) and one indirect-cost pool (assembly support). Direct labor-hours is the allocation base for assembly support costs. In December 2006, Anderson budgets 2007 assembly-support costs to be $8,000,000 and 2007 direct labor-hours to be 160,000. At the end of 2007, Anderson is comparing the costs of several jobs that were started and completed in 2007.
