JOB ORDER COSTING

Define Job Order Costing

• a form of product costing based on departmental process

• a form of specific order costing to meet customer’s special requirements

• a form of calculation of cost on work in process

• a form of product costing on a continuous basis

Job Cost Card will be used to calculate the total cost in JOC

• True

• False

What are the elements of PRIME COST?

• Direct Material

• Manufacturing Overheads

• Direct Labour

• Direct Expense

• Period cost

Which company is least likely to use a Job Order Costing system?

• Homebuilding company

• Furniture production

• Food manufacturer

• Audit firm

Which of the following source documents is used to record the amount of direct materials on the job cost sheet?

• Employee time ticket

• Material requisition form

• Production cost report

• Cash book

Two types of Predetermined Overhead Rates (POHR) are?

• Single POHR

• Departmental POHR

• Mark-up POHR

• Margin POHR

Predetermined overhead rate can be calculated based on these allocation basis:

• Machine hour

• Direct labour hour

• Commission rate

• Direct labour cost

Applied Overhead formula is:

• POHR x Direct labour hours

• POHR x Estimated activity

• POHR x Actual activity

• POHR - Actual activity

Manja Company's budgeted total overhead cost for year 2021 is RM300,000. The total budgeted direct labour hour and machine hour for the year are 45,000 hours and 50,000 hours, respectively. How much the POHR for the company if machine hour is being used as the basis?

• RM6.67

• RM7

• RM6

• RM4

Cost per unit is:

• Total cost + units sold

• Total cost  $\div$  units produced

• Total cost x units produced

• Total cost + profit