PLEASE ANSWER ELABORATELY WITH WORK Question 3

Kiddy Inc. is a company that carries out jobbing work. One of the jobs carried out in December was job 2525 to which the following information relates.

Direct material Y	400 kilos were issued from stores at a cost of RM 8 per kilo
Direct material Z	800 kilos were issued from stores at a cost of RM 5 per kilo. 60 kilo were returned to stores
Department P	300 labour hours were worked of which 100 hours were overtime
Department Q	200 labour hours were worked, of which 100 hours were overtime

Overtime work is not normal in Department P, where basic pay is RM 6 per hour plus an overtime premium of RM 1 per hour. Overtime work was done in Department Q in December because of a request by the customer of another job to complete his job quickly. Basic pay in Department Q is RM 8 per hour and overtime premium is RM 1.50 per hour. Overhead is absorbed at the rate of RM 3 per direct labour hour in both departments.

Required:

1. Calculate the direct materials cost of Job 2525
2. Calculate the direct labour cost of Job 2525

(23 Marks)

[23 Marks]