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Eduweb Pty Ltd designs web pages for clients in the education sector. The company's job- costing system has a single direct-cost category (cost of
Eduweb Pty Ltd designs web pages for clients in the education sector. The company's job- costing system has a single direct-cost category (cost of web designers' time) and a single indirect-cost pool composed of all overhead costs. Overhead costs are allocated to individual jobs based on direct labour-hours. The company employs six web designers. Budgeted and actual information regarding Eduweb Pty Ltd for the 2019 financial year are: Budget for 2019: Direct labour costs Direct labour-hours Overhead costs Actual results for 2019: Direct labour costs Direct labour-hours Overhead costs $193 000 10 000 $159 000 $253 000 11 000 $153 000 Eduweb's web design for Ironville Day School was budgeted to take 82 direct labour-hours. The actual time spent on the project was 71 hours. Calculate the cost of the job for Ironville Day School using normal costing.
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