What costs are used in a normal job-order costing system?
A)actual costs for direct materials, estimated costs for direct labour, and actual costs for overhead
B)estimated costs for direct materials, estimated costs for direct labour, and estimated costs for overhead
C)actual costs for direct materials and actual costs for direct labour, and estimated costs for overhead
D)estimated costs for direct materials, actual costs for direct labour, and actual costs for overhead

Question

Quizplus · Accepted Answer

In a normal job-order costing system, actual costs are used for direct materials and direct labor, while overhead costs are typically applied based on an estimated rate. This approach allows for the allocation of overhead costs to specific jobs in a systematic manner, even though the actual overhead costs may vary from the estimates.

What Costs Are Used in a Normal Job-Order Costing System