Discussion – The answer should not be too long

Watch the Jelly Belly Candy Company Virtual Plant Tour at the link provided in Module 3. After watching the series of videos, respond to the following:

  1. For the various flavors of products, would the company be more likely to use job or process costing? Rationalize your response.
  2. For the basis of overhead allocation, would the company be more likely to use a machine- or labor-based driver? Rationalize your response.
  3. Assume that overhead is underallocated by 6% for the period. Would the company be more likely to expense or capitalize this adjustment?

Link: https://www.youtube.com/watch?v=Xa3rwBR7WyE

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