f2 - job costing question

This topic has 6 replies, 5 voices, and was last updated 11 years ago by mansoor.

Viewing 7 posts - 1 through 7 (of 7 total)

Author
Posts
February 14, 2013 at 8:37 pm #117891
nefur
Member
- Topics: 4
- Replies: 4
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 you
February 15, 2013 at 9:01 am #117914
sweetypie9
Member
- Topics: 21
- Replies: 83
The 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 = $2840
February 17, 2013 at 1:04 pm #118063
nefur
Member
- Topics: 4
- Replies: 4
THANK YOU xoxo
March 23, 2013 at 6:38 pm #120477
Mrphamchi
Member
- Topics: 2
- Replies: 5
obsolutely correct “sweetypie9” 😀
March 2, 2014 at 3:21 am #161215
mansoor
Participant
- Topics: 424
- Replies: 542
how 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?
March 3, 2014 at 1:14 pm #161332
Merciah
Member
- Topics: 1
- Replies: 4
a – indirect labour costs
b – direct labour cost
March 3, 2014 at 2:47 pm #161347
mansoor
Participant
- Topics: 424
- Replies: 542
thanks. in case of a, where will be the direct costs recorded?
in which part of the of head will this indirect cost go?
direct material x
direct labor x
direct expenses x
prod. oh x
====
total production cost x
Admin oh x
====
total product cost/unit x
Author
Posts

Viewing 7 posts - 1 through 7 (of 7 total)

You must be logged in to reply to this topic.

20% off ACCA & CIMA Books