Question
ABC Bhd uses a job order costing system in its production process. Production overhead is applied based on direct labor hours incurred. The following information
ABC Bhd uses a job order costing system in its production process. Production overhead
is applied based on direct labor hours incurred. The following information concerns a
customer order for the job number 1345H:
Direct materials used:
Requisition Number 1333 RM880
Requisition Number 1334 RM906
Requisition Number 1335 RM248
Direct labor:
Machining Department 8 hours at RM9 per hour
Assembly Department 5 hours at RM10 per hour
Inspection Department 7 hours at RM12 per hour
In addition, production overhead cost is applied to the job at the rate of RM11 per direct
labor hour. The selling and distribution overhead is RM180. Profit markup is estimated at
25% of the total cost.
Prepare total cost for the job number 1345H.
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