Question
Matrix Ltd is considering two projects, Project X and Project Y. The company uses a job costing system and applies overheads using machine hours.
Matrix Ltd is considering two projects, Project X and Project Y. The company uses a job costing system and applies overheads using machine hours. Total overhead for the year is expected to be $225 000, and it is expected that 25 000 machine hours will be worked. Addition information relating to the prospective projects is as follows: Direct materials Direct labour 500 # of orders Project X # of set-ups 12 # of stores requisition 300 # of machine hours 80 $25 800 $30 500 140 14 120 300 Project Y $30 800 $29 360 a. Using the traditional job costing system, calculate the total cost of each job.
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Accounting and Finance An Introduction
Authors: Peter Atrill, Eddie McLaney
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129208829X, 1292088297, 978-1292088297
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