ACCT140 W3 DIS

Description

This discussion is a continuation from week 1.

1. Decide which costing system works best – process costing and job order costing. Include the following in your initial post:
   • The name of your company (remind us)
   • Product(s) (remind us)
   • Will your company use job order or process costing and why?
     • If process costing is selected – identify the processes
     • If job order costing is selected – identify the unique production
   • How will you allocate predetermined overhead? Identify and justify the cost driver. Be sure to show calculations and an example showing the development of predetermined overhead amount, using a specific cost driver
   • Do you agree with the allocation of overhead?
2. Think about Applied Overhead. What types of error or poor estimates might cause Applied Overhead to be either very low or very high compared to Actual Overhead. What’s an example of a problem that might develop as a result of that error or poor estimate? Would that error most likely make the Actual Overhead lower or higher, all other things equal?