Shep Metals is a steel engineering firm which utilises job costing. The Job Cards for the four
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Shep Metals is a steel engineering firm which utilises job costing. The Job Cards for the four jobs outstanding at the end of the period contain the following detail:
Job Number | 89 | 90 | 91 | 92 |
Direct Costs | $94,300 | $74,700 | $87,470 | $45,625 |
Machine Hours | 1,190 | 1,760 | 1,225 | 405 |
The company uses normal costing and allocates overhead using Machine Hours as the activity cost driver. Activity for the period was forecast to be 4,500 Machine Hours and manufacturing overhead expenditure was estimated to be a total of $405,000. Actual overhead for the period amounted to $410.000.
Overhead applied to Job 89 during the period amounted to:
Related Book For
Principles of Accounting
ISBN: 9780077300456
1st edition
Authors: Robert Libby, Patricia Libby, Fred Phillips, Stacey Whitecotton
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