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  • 05 - Activity - 2 Unit and Job Costing

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    Abayare Rena
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    The document summarizes a job costing for a waterpipe manufacturing job. It provides that the job used 45 direct labor hours at a rate of P70 per hour, cost P3,200 in materials, and had an overhead rate of P8.50 per direct labor hour. It then calculates: direct labor as 45 hours x P70/hour = P3,150, applied overhead as 45 hours x P8.50/hour = P382.50, and total job cost as the sum of direct materials P3,200, direct labor P3,150, and applied overhead P382.50 equaling P6,732.50.

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    05_Activity_ 2 Unit and Job Costing

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    The document summarizes a job costing for a waterpipe manufacturing job. It provides that the job used 45 direct labor hours at a rate of P70 per hour, cost P3,200 in materials, and had an overhead rate of P8.50 per direct labor hour. It then calculates: direct labor as 45 hours x P70/hour = P3,150, applied overhead as 45 hours x P8.50/hour = P382.50, and total job cost as the sum of direct materials P3,200, direct labor P3,150, and applied overhead P382.50 equaling P6,732.50.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    23 views1 page

    05 - Activity - 2 Unit and Job Costing

    Uploaded by

    Abayare Rena
    The document summarizes a job costing for a waterpipe manufacturing job. It provides that the job used 45 direct labor hours at a rate of P70 per hour, cost P3,200 in materials, and had an overhead rate of P8.50 per direct labor hour. It then calculates: direct labor as 45 hours x P70/hour = P3,150, applied overhead as 45 hours x P8.50/hour = P382.50, and total job cost as the sum of direct materials P3,200, direct labor P3,150, and applied overhead P382.50 equaling P6,732.50.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    Reyna M. Abayare BSBA21A Nov.

    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.

    Provide the following (3items x 10 points)

    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

    Direct Labor = Rate x Activity = 70.00 DLH x 45 DLH = P3,150. 00

    B. Apply the overhead to the job by multiplying the predetermined overhead rate by the activity

    Applied Overhead = Predetermined Rate x Activity

    = 8.50 per DLH x 45 = P382.50

    C. Compute the job total cost.

    Direct Materials P3,200.00


    Direct Labor 3,150.00
    Applied Overhead 382.50

    Total job cost = Direct Materials + Direct Labor +Apply Overhead

    = 3,200 + 3,150 + 382.50 = P6,732. 50

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