Question
Build Co is a company that carries out contracting work. One of the jobs carried out in February was job 1357, to which the following
Build Co is a company that carries out contracting work. One of the jobs carried out in February was job 1357, to which the following information relates: Direct material Y: 400 kilos were issued from stores at a cost of $5 per kilo. Direct material Z: 800 kilos were issued from stores at a cost of $6 per kilo. 60 kilos were returned. Department P: 320 labour hours were worked, of which 100 hours were done as overtime. Department Q: 200 labour hours were worked, of which 100 hours were done as overtime. Overtime work is not normal in department P, where basic pay is $8 per hour plus an overtime premium of $2 per hour. Overtime work was done in department Q in February because of a request by the customer of another job to complete his job quickly. Basic pay in department Q is $10 per hour and the overtime premium is $3 per hour. Overhead is absorbed at the rate of $3 per direct labour hour in both departments. Required:
Determine:
a) The direct materials cost of job 1357
b) The direct labour cost of job 1357
c) The full production cost of job 1357
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