CWC management currently uses thea job order costing system because each product, standard windows or custom windows, requires unique designsdesign. CostThe cost of products is determined by actual direct costs and overhead using a predetermined rate to the actual volume of the allocation base (normal costing). CWC allocates their overhead costs using the facility-wide rate, based on machine hours. Total costs for each product are accumulated using the job cost sheet. The product costs for each product fully absorb the manufacturing costs (absorption costing).
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