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job costing

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

  • This topic has 1 reply, 2 voices, and was last updated 3 months ago by John Moffat.
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  • April 5, 2022 at 11:51 am #652736
    huzaifaminhas
    • Topics: 7
    • Replies: 2
    • ☆

    Jobex Co uses job costing. Production costs, including absorbed overhead, of $4,917 have been incurred to date on Job ABC. A further $1,735 of direct costs, including the cost of 82 direct labor hours, are expected to be required to complete the job. Production overheads are absorbed at a rate of $9 per direct labor hours.

    I have solved this question as taking 4917+82×9+1735=7390
    is this the right way to calculate?
    or should i first absorb overheads by dividing 4917 by 82 then multiplying by 9?

    April 5, 2022 at 2:41 pm #652751
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49628
    • ☆☆☆☆☆

    Your figure of 7,390 is correct.

    (Why are you attempting a question for which you do not have an answer? You should be using a Revision Kit from one of the ACCA Approved Publishers – they have answers and explanations.)

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