Job costing

ABC Company uses a job cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are:

Budgeted Sales (units) 20 000 Production 20 000

The actual costs were as follows:

Actual 19 000 21 000

Direct material Direct labour Variable production overhead

Required:

USD 417 900 USD 949 620 USD 565 740

Calculate usage and price variances for all costs.

Department A $700,000 $200,000 $600,000

Department B $100,000 $800,000 $400,000

Direct materials Direct manufacturing labor Manufacturing overhead The actual material and labor costs charged to Job #4 were as follows:

Total Direct materials: $25,000

Direct labor: Department A $ 8,000 Department B $12,000

$ 20,000

Company applies manufacturing overhead costs to jobs on the basis of direct manufacturing labor cost using departmental rates determined at the beginning of the year.

Calculate For Department A, the manufacturing overhead allocation rate. For Department B, the manufacturing overhead allocation rate Total manufacturing overhead costs allocated to Job #4