Please enable JavaScript.

Coggle requires JavaScript to display documents.

JOB-ORDER COSTING - Coggle Diagram

- - - - Estimate amount of the allocation base required for next period's estimated level of production
      - Estimate total fixed manufacturing overhead cost for the coming period + variable manufacturing overhead cost per unit of the allocation base
      - Estimate total manufacturing overhead cost
        Y = a + bX = FC + VC x Amount of allocation base
      - Predetermined overhead rate =
        Estimated total manufacturing overhead cost : Estimated total amount of the allocation base (Step 1 : Step 3)
  - - - (1) Automated equipment has taken over functions that used to be performed by direct labor workers,
      - (2) Products are becoming more complex and changes frequently, increasing the need for highly skilled indirect workers like engineers