Unit 6 Job Costing
anthony_12c
Registered Posts: 40 Regular contributor ⭐
I'm doing XYZ123, a factory job cost exercise
A factory job cost card number XYZ123 shows the following price cost:
Direct Materials - 55.5 tons of steel @ £286 per ton
Direct Wages - Depo A - 60 hrs @ £13 per hour
Depo B - 80 hrs @ £12 per hour
The budget for the year reveals the following:
Variable Overheads
Depo A £24,000 for 36,000 direct labour hrs
Depo B £40,000 for 50,000 direct labour hrs
Fixed Overheads
Total budgeted direct labour hrs for the whole factory 90,000
Total budgeted expenditure £67,500
Required
A) Calculate the cost of job XYZ123
Estimate the percentage profit obtained if the price quoted to the customer was £17,995
What am i doing with the 90,000 exactly?
Any help would be appreciated thanks
A factory job cost card number XYZ123 shows the following price cost:
Direct Materials - 55.5 tons of steel @ £286 per ton
Direct Wages - Depo A - 60 hrs @ £13 per hour
Depo B - 80 hrs @ £12 per hour
The budget for the year reveals the following:
Variable Overheads
Depo A £24,000 for 36,000 direct labour hrs
Depo B £40,000 for 50,000 direct labour hrs
Fixed Overheads
Total budgeted direct labour hrs for the whole factory 90,000
Total budgeted expenditure £67,500
Required
A) Calculate the cost of job XYZ123
Estimate the percentage profit obtained if the price quoted to the customer was £17,995
What am i doing with the 90,000 exactly?
Any help would be appreciated thanks
0
Comments
-
Anthony
I hope the attachment is helpful.
The 90,000 hours of direct labour shows the total hours to be worked, 36,000 will be in dept A, 50,000 will be in dept B and presumably there is a dept c where the remainder are worked.
Our product only uses dept A and dept B.
We find the fixed overhead absorption rate per direct labour hour by dividing total budgeted cost by the total budgeted labour hours, in this case:
£67,500
90,000 hours
This gives us a fixed overhead absorption rate of £0.75 per direct labour hour.Sandy
sandy@sandyhood.com
www.sandyhood.com0 -
on the last bit is says what would the client be charged if the company set a 25% profit on cost. Am i right in thinking 25% is put on 17822 giving a charge to the customer of £22277.50???0
-
Yes
You have correctly added 25% on to the cost.
I do not have any more of the question than that supplied here.Sandy
sandy@sandyhood.com
www.sandyhood.com0
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