[SOLVED] 1- Compute the pre determine overhead using direct labour hour as accost driver. 2- Compute total product costs for the two jobs. 3- Pass journal entries to record cost flow, namely direct material, direct labour and overhead to work in process inventory. – Business Finance

by | Aug 28, 2022 | Business Finance

Assignment Question(s): (5.0 Marks)Assignment 1 acct 322ABC Corporation applies job order costing system and the information drawn from its costing records as follows 🙁 2 Marks)ParticularJob 100Job 200TotalDirect material per unit50 SR75 SR-Direct labour rate per hour15 SR20 SR-Direct labour hour per unit24-Yearly estimated direct labour hour–20,000 hoursYearly estimated fixes overhead–100,000 SROverhead variable cost per direct hour–5 SRYearly estimated machine hours5,000 hours During January 2021, the corporation produced and sold 3000 units from job order no. 100 and 3500 units from job order no. 200 respectively. The corporation uses normal costing system that charge applied overhead to jobs.Required:1-Compute the pre determine overhead using direct labour hour as accost driver.2-Compute total product costs for the two jobs.3-Pass journal entries to record cost flow, namely direct material, direct labour and overhead to work in process inventory.Answer:2. Analyse the following costs into product costs and period costs using check mark in the column (1.5 Marks)CostsProduct costsPeriod costsDirect labourDirect materialDepreciation on manufacturing equipmentAdvertising expenseResearch and development expenseWages for administrationDepreciation for vehicles used in salesFactory utilities.Rent of the production buildingSalaries of maintenance personnel.Office depreciationInterest expense on a company’s debtAnswer:Q3. The following information drawn from ABC Corporation about maintenance costs in 2020. (1.5 Marks)MonthTotal maintenance costs (SR)Maintenance hoursJuly75,0005,000August81,0005,500September63,0004,000October51,0003,000November87,0006,000December84,6005,800Required:1.Estimate the cost function for ABC using the high- low method.2.Predict maintenance costs if maintenance hours are 7,000 hours in January 2021.Answer:



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