CHAPTER 5
DISCUSSION QUESTIONS Page 244 – Q# 6, Q# 9, and Q# 12
- How do firms collect job-related information on driver usage in an activity-based costing system?
- Why would some prefer normal activity to expected actual activity to compute a predetermined overhead rate?
- Why are the accounting requirements for job-order costing more demanding than those for process costing?
Corner Stone Exercise 5.5 Page 246 (Complete all required 1, 2, and 3)
- Calculate the activity rates for each of the three overhead activities.
- Prepare job-order cost sheets for each job showing all costs through July 31.
- Calculate the balance in Work in Process on July 31.
Sample Solution