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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 587 |
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Assigning overhead to differentiated products is recognized in many ways. Some are done on a daily basis, as in the case of machinery repairs and the use of indirect materials and indirect labor. Some overhead costs are record periodically through adjusting entries. This decision is affected by decisions about the costing system used because some plant overhead costs such as heating and air conditioning the plant, are difficult to assign except on the some basis such as the amount of footage occupied by each line...
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Mentioning the word "assume" tells me that he's not sure and he probably does not have a clue as long as there are numbers there for unit costs. In a job order system, the unit cost is the totals cost per job divided by the units produced. In process order system, the unit cost is the total manufacturing costs for the period divided by the units produced during the period...
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