X per year ES G H D 4A 54 65 66 92 67 68 69 70 Job WR53 at NW Fab, Inc. required $200 of direct materials and 10 direct labor hours at $15 per hour. Estimated total overhead for the year was $760,000 and estimated direct labor hours were 20,000. What would be recorded as the cost of job WR53? 71 72 73 74 75 75 71 TS 79 Choosing an allocation base Job-order costing systems often use allocation bases that do not reflect how jobs actually use overhead resources. The allocation base in the predetermined overhead rate must drive the overhead cost to Improve job cost accuracy. A cost driver is a factor that causes overhead costs. 30 81 83 14 Multi-department POHR 1. It is often overly-simplistic and incorrect to assume that direct labor hours is a company's only manufacturing overhead cost driver 2. If more than one overhead cost driver can be identified job cost accuracy is improved by using multiple predetermined overhead 65 86 ST 89 89 90 91 92 91 04 95 96 97 99 99 100 101 100 2. Introduction OM department Ch 2. Pearco Type here to search AO c 3 - . g