Job order costing: direct costs, predetermined overhead rates, unit cost and quotation price

What this note covers

1. What job order costing is and when it applies
2. Assigning direct materials and direct labour to a job
3. The predetermined overhead recovery rate at normal capacity
4. Building the total job cost
5. Mark-up and the quotation or selling price
6. Full worked example: from job cost to quotation price
7. How this topic is examined

7 sections · 12 key terms & formulas · 6 common mistakes