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  • Total Job Cost

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    Cyruss Merano
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    The document provides 3 examples of calculating overhead costs charged to Job 2010 using different allocation methods. In the first example using direct labor cost method with a 100% overhead rate, the overhead charged is $3,200 resulting in a total job cost of $11,400. In the second example using direct labor hour method at a rate of $10/hour, the overhead is $2,500 and total job cost is $10,700. In the third example using machine hour method at $12.50/hour, overhead is $3,687.50 and total job cost is $11,887.50.

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    Total job cost

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    The document provides 3 examples of calculating overhead costs charged to Job 2010 using different allocation methods. In the first example using direct labor cost method with a 100% overhead rate, the overhead charged is $3,200 resulting in a total job cost of $11,400. In the second example using direct labor hour method at a rate of $10/hour, the overhead is $2,500 and total job cost is $10,700. In the third example using machine hour method at $12.50/hour, overhead is $3,687.50 and total job cost is $11,887.50.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    101 views2 pages

    Total Job Cost

    Uploaded by

    Cyruss Merano
    The document provides 3 examples of calculating overhead costs charged to Job 2010 using different allocation methods. In the first example using direct labor cost method with a 100% overhead rate, the overhead charged is $3,200 resulting in a total job cost of $11,400. In the second example using direct labor hour method at a rate of $10/hour, the overhead is $2,500 and total job cost is $10,700. In the third example using machine hour method at $12.50/hour, overhead is $3,687.50 and total job cost is $11,887.50.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 2

    1.

    If the direct labor cost method is used in applying factory overhead and the predetermined rate
    is 100%, what amount should be charged to Job 2010 for factory overhead? Assume that direct
    materials used totaled $5,000 and that the direct labor cost totaled $3,200.
    GIVEN:
    DIRECT MATERIAL = $5,000
    DIRECT LABOR = $3,200
    FACTORY OVERHEAD = (100% OF $3200) = $3,200

    SOLUTION:
    𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝐽𝐽𝐽𝐽𝐽𝐽 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 = 𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷 𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀 + 𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 + 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂
    𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝐽𝐽𝑂𝑂𝑂𝑂 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 = $5,000 + $3,200 + $3,200
    𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝐽𝐽𝐽𝐽𝐽𝐽 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 = $11,400

    2. If direct labor hour method is used in applying factory overhead and the predetermined rate is
    $10 an hour, what amount should be charged to Job 2010 for factory overhead? Assume that the
    direct materials used totaled $5,000, the direct labor cost total $3,200, and the number of direct
    labor hours totaled 250.
    GIVEN:
    DIRECT MATERIAL = $5,000
    DIRECT LABOR = $3,200
    FACTORY OVERHEAD = (250 HOURS X $10) = $2,500

    SOLUTION:
    𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝐽𝐽𝐽𝐽𝐽𝐽 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 = 𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷 𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀 + 𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 + 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂
    𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝐽𝐽𝐽𝐽𝐽𝐽 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 = $5,000 + $3,200 + $2,500

    𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝐽𝐽𝐽𝐽𝐽𝐽 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 = $10,700


    3. If the machine hour method is used in applying factory overhead and the predetermined rate is
    $12.50 an hour, what amount should be charged to Job 2010 for factory overhead? Assume that
    the direct materials used totaled $5,000, the direct cost totaled $3,200, the direct labor hours were
    250 hours, and the machine hours were 295 hours.
    GIVEN:
    DIRECT MATERIAL = $5,000
    DIRECT LABOR = $3,200
    FACTORY OVERHEAD = (295 HOURS X $12.50) = $3,687.50

    SOLUTION:
    𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝐽𝐽𝐽𝐽𝐽𝐽 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 = 𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷 𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀𝑀 + 𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷𝐷 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 + 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂𝑂
    𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝐽𝐽𝐽𝐽𝐽𝐽 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 = $5,000 + $3,200 + $3,687.50
    𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝐽𝐽𝐽𝐽𝐽𝐽 𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶 = $11,887.50

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