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costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › costing

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
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    Posts
  • August 19, 2021 at 11:09 am #632086
    sooha
    Participant
    • Topics: 62
    • Replies: 71
    • ☆☆

    A company operates a job costing system. Job number 605 requires $300 of direct materials and $400
    of direct labour. Direct labour is paid at the rate of $8 per hour. Production overheads are absorbed at a
    rate of $26 per direct labour hour and non-production overheads are absorbed at a rate of 120% of
    prime cost.
    What is the total cost of job number 605?
    the answer is 2,840

    should I include non-production overhead in the cost calculation of the job ?

    August 19, 2021 at 3:15 pm #632162
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    Yes – you need to include all the costs for the specific job.

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