9 Job vs. Process Costing LO1
• Physical therapy clinic (mobility therapy) -JC
• Graphic design studio (logo design) -JC
• Auto repair shop (miscellaneous auto repairs)-JC
• Local bakery (wheat bread) -PC
• Dairy (whole milk) -PC
• Oil refinery (motor oil) -PC
• Construction contractor (custom-built homes)-JC
10 Job Costing LO2
Love’s Pottery Barn had the following costs for June: What was the cost of direct materials used during June? $ 275.00
11 Direct Labor vs. Indirect Labor LO2, 3
Jim Wilson is a typical manufacturing employee who commonly works 40 hours per week and is paid $14 per hour. During the last pay period, Jim performed the following activities:
29.5 hrs of DL and 9.5 hrs of IL
12. Job Costing LO3
Required
How much manufacturing overhead was incurred during March? $20,000
13. Identification of Cost Drivers LO3
• a. Architectural design firm: designer hours, Time per unit___________
• b. Caterer and party consultancy firm: number of party guests, courses per meal___________
• c. Furniture manufacturer: direct labor hours, Assembling time___________
• d. Printer and copy shop: size of print or copy job, number of copies___________
• e. Textbook binder: machine hours, electricity___________
• f. Automobile repair shop: technician labor hours, cleaning work area time___________
• g. Winemaker: pounds of grapes labor hours___________

14. Overhead Costs, cost pools, Cost drivers LO3.4
A. Overhead costs cause cost drivers. FALSE
B. In traditional manufacturing environments, most overhead costs are directly related to production activities. FALSE
C. Overhead rates are calculated by multiplying manufacturing overhead costs by the volume of cost pool activity. FALSE
D. Companies that are labor intensive are likely to allocate overhead costs such as utilities expense on the basis of direct labor hours.TRUE
E. More