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Actual Cost and Normal Cost Methods

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Information Provided
Actual Direct Materials $5,000.00
Actual Direct Labor $9,000.00

Actual Variable Overhead Costs $20,000
Actual Fixed Overhead Costs $26,000

Variable Direct Labor Predetermined Measure 200%
Fixed Direct Labor Predetermined Measure 300%

Calculate actual costs of the job.
Calculate normal costs of the job using predetermined overhead rates.

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Solution Summary

The solution explains how to calculate the actual costs and normal costs of a job.

Solution Preview

In actual costing we take the actual costs of the job. The actual costs are
Actual Direct Materials $5,000
Actual Direct Labor $9,000
Actual Variable Overhead Costs $20,000
Actual ...

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