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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?
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.)