Question 3

ABCBhduses a job order costing system in its production process. Production overheadis applied based on direct labor hours incurred. The following information concerns acustomer order for the job number 1345H:

Direct materials used:

Requisition Number 1333RM880

Requisition Number 1334RM906

Requisition Number 1335RM248

Direct labor:

Machining Department8 hours at RM9 per hour

Assembly Department5 hours at RM10 per hour

Inspection Department7 hours at RM12 per hour

In addition, production overhead cost is applied to the job at the rate of RM11 per directlabor hour. The selling and distribution overhead is RM180. Profit markup is estimated at25% of the total cost.

Prepare total cost for the job number 1345H.