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A company operates a job costing system. Job number 1207 requires $80 of direct material and $120 of direct labour. Direct labour is paid at rate of $12 per hour. Direct expenses for the job are $50. Production overheads are absorbed at rate of $40 per direct labour hour and non-production overheads are absorbed at a rate 110% of prime cost.
What is the total cost of the job number 1207?
answer: DM = 80, DL = 120, DE = 50
Prime cost = 250
Prod. ovrhead = 400
Non.Production = 275I get the prime cost & non.prod but im confused on how to get the prod. o/h?
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