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A business has a job costing system and prices jobs using total absorption costing. The job estimates for job 264 are as follows:
Direct materials 50kg @ $4 per kg
Direct labour 30 hours @ $9 per hour
Variable production overhead $6 per direct labour hour
Fixed production overheads are budgeted as $80,000 and are absorbed on the basis of direct labour hours. The total budgeted direct labour hours for the period are 20,000.
Other overheads are recovered at the rate of $40 per job.
Calculate the total job cost for job 264.
please helpYou must have an answer in the same book in which you found the question, and so ask about whatever it is in the answer that you are not clear about and then I will explain.
I do not really understand why you are having a problem. You simply calculate each of the costs (for example the material cost is 50 x $4 = $200) and then add them all up!
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