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Roque Printers Inc. uses job order costing. Printers' wages are charged to direct labor while typesetters' wages are charged to overhead and comprise 30%
Roque Printers Inc. uses job order costing. Printers' wages are charged to direct labor while typesetters' wages are charged to overhead and comprise 30% of applied overhead. Overhead is applied at a rate based on direct labor cost. During July, only two jobs were started and completed. Relevant data from these jobs were: Materials cost Direct labor Job 4270 Job 1060 P5.000 P3,000 10,000 ? Applied overhead ? Total cost 30,000 12,000 ? Selling price 30,000 35,000 Gross profit 0 ? Management determines that the typesetters' wages should be direct labor cost and that Job 4270 required 1/3 of the total typesetting cost incurred, while Job 1060 required 2/3. What is the total typesetters' wages for July? P8,100 P7,100 P9,500 P1,800 What is the corrected direct labor costs for Jobs 4270 and 1060? Job 4270 P12,700; Job 1060 P13,400 Job 4270 P15,700; Job 1060 P15,500 Job 4270 P17,200; Job 1060 P14,300 Job 4270 P22,700; Job 1060 P23,400
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