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Which of the following would usually be found on a job cost sheet under a normal cost system?

a) Actual direct material cost: Yes, Actual manufacturing overhead cost: Yes
b) Actual direct material cost: Yes, Actual manufacturing overhead cost: No
c) Actual direct material cost: No, Actual manufacturing overhead cost: Yes
d) Actual direct material cost: No, Actual manufacturing overhead cost: No

1 Answer

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Final answer:

On a job cost sheet under a normal cost system, actual direct material costs are recorded, but actual manufacturing overhead costs are not; instead, an applied overhead rate is used.

Step-by-step explanation:

The question pertains to components usually found on a job cost sheet under a normal cost system. In a normal cost system, the actual direct materials cost is typically recorded on the job cost sheet because these costs can be traced directly to a specific job.

However, instead of actual manufacturing overhead costs, the job cost sheet usually includes an applied, or allocated, overhead rate based on a predetermined formula. This approach is used because it's often difficult to trace the actual overhead costs directly to a specific job at the time the costs are incurred. Therefore, the correct answer to the question is option b) Actual direct material cost: Yes, Actual manufacturing overhead cost: No.

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