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05 - Activity - 2 Unit and Job Costing
05 - Activity - 2 Unit and Job Costing
12, 2022
Activity
Waterpipe manufacturing completed job #727 on January 10. The job used 45 direct labor hours. The
job consumed P 3,200 2worth of materials. The average labor rate is P 70,00per hour, and the company
uses the predetermined overhead rate of 8.50 per direct labor hour.
Formula: The three (3) components of job cost are direct materials, direct labor, and applied overhead
A. Based on the illustration, the average labor rate is P 70.00 per DLH, and the activity is 45 DLH
B. Apply the overhead to the job by multiplying the predetermined overhead rate by the activity