JOB Order Costing (Actual Vs Normal Costing, Allocating Indirect Overhead Costs, Actual Vs Applied)

Job Order Costing comparing actual versus normal costing, both actual & normal costing use direct labor & direct material costs, the difference between each is how overhead cost are allocated, (1) Actual Costing uses the actual overhead costs accumulated for the year, (2) Normal Costing uses a budgeted pre-determined overhead rate (applied OVHD rate) which requires year-end adjustments to account for the budgeted versus actual rate, example shows calculations & tracks costs thru T-Accounts to determine final cost of goods sold for a particular (individual job), thru manufacturing overhead control account into work-in-process, finished goods, cost-of-goods-sold, sales (revenue), reviewing indirect & direct materials & labor costs, actual overhead versus applied overhead, etc., detailed discussion by Allen Mursau