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What Are the Basic Steps for Creating an Intersection Table

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What are the basic steps for creating an intersection table?


Definitions:

Machine-Hours

A measurement used in allocating manufacturing costs to products, representing the number of hours a machine is operated during the production process.

Predetermined Overhead Rate

The predetermined overhead rate is calculated before a period begins by dividing estimated overhead costs by an estimated allocation base, used to assign overhead costs to products.

Machine-Hours

A measure of production time, describing how many hours a machine is in operation.

Job-Order Costing

A cost accounting system that accumulates costs per job rather than by process, suitable for firms producing unique products or jobs.

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