How firms collect job-related information on driver usage in an activity-based costing system

CHAPTER 5
DISCUSSION QUESTIONS Page 244 – Q# 6, Q# 9, and Q# 12

1. How do firms collect job-related information on driver usage in an activity-based costing system?
2. Why would some prefer normal activity to expected actual activity to compute a predetermined overhead rate?
3. 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)

1. Calculate the activity rates for each of the three overhead activities.
2. Prepare job-order cost sheets for each job showing all costs through July 31.
3. Calculate the balance in Work in Process on July 31.

Sample Solution