In a normal costing system, the cost of a job includes

A. actual direct materials, actual direct labor, and estimated (applied) overhead.

B. estimated direct materials, estimated direct labor, and estimated overhead.

C. actual direct materials, actual direct labor, actual overhead, and actual selling cost.

D. actual direct materials, actual direct labor, and actual overhead.

E. None of these. Job-order costing requires the use of actual, not normal, costing.

Question

Amorcita

Business

25 February, 10:47

In a normal costing system, the cost of a job includes

A. actual direct materials, actual direct labor, and estimated (applied) overhead.

B. estimated direct materials, estimated direct labor, and estimated overhead.

C. actual direct materials, actual direct labor, actual overhead, and actual selling cost.

D. actual direct materials, actual direct labor, and actual overhead.

E. None of these. Job-order costing requires the use of actual, not normal, costing.

+1

Answers (1)

Know the Answer?

Ezequiel Duarte · Answer 1

a. actual direct materials, actual direct labor, and estimated (applied) overhead.

Explanation:

The cost will include all the resources that are directly related to the final product that the firm will try to sell.