Question
Yaamutu Ltd uses a predetermined overhead rate to allocate overhead. Overhead is allocated on the basis of machine hours. At the beginning of the year,
Yaamutu Ltd uses a predetermined overhead rate to allocate overhead. Overhead is allocated on the basis of machine hours.
At the beginning of the year, the following estimates are provided:
Direct Labour Hours 10,000
Machine Hours 20,000
Direct Labour Cost $800,000
Overhead Cost $300,000
Actual Costs reported for all jobs during the year are as follows:
Direct Labour Hours 90,000
Machine Hours 12,000
Direct Labour Cost $750,000
Overhead Cost $250,000
The accounting records of the company show the following data for Job 60 which was done for Naya Ltd.
Direct Labour Hours 150
Machine Hours 50
Direct Material Cost $1,000
Direct Labour Cost $1,500
What is the cost of this job?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started