Job Costing -TAccounts Practice Problem 8 A furniture-making business manufactures quality furniture to customers' orders. It has three production departments (A, B and C) which have overhead absorption rates (per direct labour hour) of $12.86, $12.40 and $14.03 respectively. Two pieces of furniture are to be manufactured for customers. Direct costs are as follows. Job XYZ $154 20 hours dept A 12 hours dept B 10 hours dept C Job MNO Direct material Direct labour $108 16 hours dept A 10 hours dept B 14 hours dept C Labour rates are as follows: $3.80(A): $3.50 (B): $3.40 (C) Calculate the total cost of each job.

Job Costing -TAccounts Practice Problem 8 A furniture-making business manufactures quality furniture to customers' orders. It has three production departments (A, B and C) which have overhead absorption rates (per direct labour hour) of $12.86, $12.40 and $14.03 respectively. Two pieces of furniture are to be manufactured for customers. Direct costs are as follows. Job XYZ $154 20 hours dept A 12 hours dept B 10 hours dept C Job MNO Direct material Direct labour $108 16 hours dept A 10 hours dept B 14 hours dept C Labour rates are as follows: $3.80(A): $3.50 (B): $3.40 (C) Calculate the total cost of each job.

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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QUESTION 6 Quiche & Tell, Inc., is a catering business. Direct labor costs are $15 per hour and overhead is allocated to jobs at a rate of $10 per direct labor hour. Catering for the Eggsetera, Inc. party cost $1,000 for direct materials and took 20 direct labor hours. Calculate the total cost of the Eggsetera's party.
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