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Blue Industries has two departments ABC and XYZ and uses a job cost system. In determining manufacturing costs, Blue applies manufacturing overhead to production orders based on direct labor cost during the departmental rates predetermined at the beginning of the year based on the annual budget. The budget for the two departments are as follows: ABC XYZ Direct Materials P630,000 P90,000 Direct Labor 180,000 720,000 Factory Overhead 540,000 360,000 Actual materials and labor costs for Job 678 were: Direct Materials P22,500 Direct Labor Dept ABC P7,200 Dept XYZ 10,800 18,000 What is the total manufacturing costs associated with Job 678?

Blue Industries has two departments ABC and XYZ and uses a job cost system. In determining manufacturing costs, Blue applies manufacturing overhead to production orders based on direct labor cost during the departmental rates predetermined at the beginning of the year based on the annual budget. The budget for the two departments are as follows: ABC XYZ Direct Materials P630,000 P90,000 Direct Labor 180,000 720,000 Factory Overhead 540,000 360,000 Actual materials and labor costs for Job 678 were: Direct Materials P22,500 Direct Labor Dept ABC P7,200 Dept XYZ 10,800 18,000 What is the total manufacturing costs associated with Job 678?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Blue Industries has two departments ABC and XYZ and uses a job cost system. In determining manufacturing costs, Blue applies manufacturing overhead to production orders based on direct labor cost during the departmental rates predetermined at the beginning of the  year based on the annual budget. 

The budget for the two departments are as follows:

  ABC XYZ
Direct Materials P630,000 P90,000
Direct Labor 180,000 720,000
Factory Overhead 540,000 360,000

Actual materials and labor costs for Job 678 were:

Direct Materials   P22,500
Direct Labor    
Dept ABC P7,200  
Dept XYZ 10,800 18,000

What is the total manufacturing costs associated with Job 678?

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