To begin, select one of the following types of businesses:
Custom home builder
Auto repair shop
Accounting firm
Lawn service company
Television show production
Airplane built for the U.S. Air Force
Describe how your chosen business might use job order costing to account for its product(s) or service(s). Explain the types of costs that would be classified as direct versus indirect, variable versus fixed, and product versus period. Be sure to address the overhead allocation base that you would suggest for the company to use by presenting an example of how your type of business would account for overhead and prepare a sample journal entry to dispose of any under- or overapplied overhead under normal costing.
In your response posts, comment on the costs identified by your peers, given the type of business chosen. What other costs would you add? Explain your reasoning. Additionally, comment on the examples posted regarding the journal entry to dispose of under- or overapplied overhead. Support your responses to classmates with sound arguments and/or additional examples related to job order costing methods and applications.