A company operates a job costing system. The estimated costs for job 173 are as follows. Direct materials 5 metres @ $20 per metre Direct labour 14 hours @ $8 per hour Variable production overheads are recovered at the rate of $3 per direct labour hour. Fixed production overheads for the year are budgeted to be $200,000 and are to be recovered on the basis of the total of 40,000 direct labour hours for the year. Other overheads, in relation to selling, distribution and administration, are recovered at the rate of $80 per job. What is the total cost of job 173?
A、$404
B、$300
C、$254
D、$324
A、$404
B、$300
C、$254
D、$324
【参考答案及解析】
Direct materials (5 x $20) Direct labour (14 x $8) Variable overhead (14 x $3) Fixed overhead (14 x $5*) Other overhead Total cost of job 173 *Fixed production overhead absorption rate = $200,000 H H 40,000 = $5 per direct labour hour
Direct materials (5 x $20) Direct labour (14 x $8) Variable overhead (14 x $3) Fixed overhead (14 x $5*) Other overhead Total cost of job 173 *Fixed production overhead absorption rate = $200,000 H H 40,000 = $5 per direct labour hour