=+Direct materials $900 000 $620 000 $595 000 $605 000 $2 720 000 Direct labour costs $400 000 $280 000 $250 000 $270 000 $1 200 000 Variable overhead costs as a percentage of direct labour cost 90% 60% 60% 60%

Fixed overhead costs $300 000 $300 000 $300 000 $300 000 $1 200 000 Chapter 5: Product and service costing 199 M05_HORN3377_02_LT_C05.indd 199 2/09/13 3:24 PM Required 1 Consider job 332, an order for 150000 sales catalogues for the local shopping centre. Actual direct materials costs for this job are $15000 and actual labour costs are $10000. Calculate the cost of job 332:

(a) if it is completed in January–March 2015 and if the budgeted overhead rate for that quarter is used to allocate overhead costs,

(b) if it is done in July–September 2015 and if the budgeted overhead rate for that quarter is used to allocate overhead costs, and

(c) if the average budgeted overhead rate for the year 2015 is used to allocate overhead costs.