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A company operates a job costing system. Job number 1203 requires $300 of direct materials and $400 for direct labour.
Direct labour is paid at a rate of $8 per hour. Production overheads are absorbed at a rate of $26 per direct labour and non productions overhead are absorbed at a rate of 120% of prime cost.
what is the total cost of Job number 1203?
HELP PLEASE !!!!!!
thank youThe answer is $2840
Method :-
Direct material = $300
Direct Labour = $400 @ $8/hour 400/8 = 50 hours
Prime cost = $ 700
Production overhead = $26 x 50 hours = $1300
Non-production overhead = 700 x 120% = $840
Total job cost = DM +DL + POH+ NPOH = 300+400+1300+840 = $2840how do u treat overtime premiums when doing job costing?
a. if ot is worked but the ot is not a normal practice?
b. ot is worked by client request?
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