06-11-2009, 01:17 PM
Job order costing. Job no. 13000
Direct material X 400 kilos rate 5 per kilos.
Direct materialY 800 Kilod rate is 6 per kilo, 20 kilos were
demaged and treated as abnormal loss.
Direct labour
department X 300 hours @ 4
department Y 200 hours @ 5 , department X had to carry out
rectification works, which took 20 hours in normal time. These 20
hours are additional to the 300 hours above. This rectification work
in normal for a job such as job no.13000 ,and since it was expected ,
is included in direct labour cost.
Absorption rate is 3 per direct labor hours.
Questions
1 What is direct material cost
2 What is direct labour cost
3 What is production overhead cost.
According to me answers are
1 6320
2 2280
3 500*3=1500
Are these right.
What is the treatment of rectification labour hour. Will it be included the hours which use for to fide absorption rate of FOH, Direct materil and labour cost. PLz reply it is my assignment i have to submit tomorrow.
Direct material X 400 kilos rate 5 per kilos.
Direct materialY 800 Kilod rate is 6 per kilo, 20 kilos were
demaged and treated as abnormal loss.
Direct labour
department X 300 hours @ 4
department Y 200 hours @ 5 , department X had to carry out
rectification works, which took 20 hours in normal time. These 20
hours are additional to the 300 hours above. This rectification work
in normal for a job such as job no.13000 ,and since it was expected ,
is included in direct labour cost.
Absorption rate is 3 per direct labor hours.
Questions
1 What is direct material cost
2 What is direct labour cost
3 What is production overhead cost.
According to me answers are
1 6320
2 2280
3 500*3=1500
Are these right.
What is the treatment of rectification labour hour. Will it be included the hours which use for to fide absorption rate of FOH, Direct materil and labour cost. PLz reply it is my assignment i have to submit tomorrow.
