EB8.
LO 4.4Job order cost sheets show the following costs assigned to each job:



The company assigns overhead at twice the direct labor cost. What is the total cost for each job?

Respuesta :

Answer:

                                        Total cost of each job                            

                                  Job 131       Job 132     Job 133

                                       $                   $               $

Direct material             3,485          39,853      2,301

Direct labour                2,353          34,245      2,037

Overhead applied        4,706          74,098     4,338

Total cost of each job  10,544         148,196     8,676                                                                                                                                                              

Explanation:

The total cost of each job is the aggregate of direct material, direct labour and overhead applied. Since the company assigns overhead at twice the direct labour cost, it implies that the direct labour will be multiplied by 2 so as to obtain the overhead applied.