Question

Finn Ltd., a manufacturer of cars, applies overhead based on direct labour hours. For 20x3, total...

Finn Ltd., a manufacturer of cars, applies overhead based on direct labour hours. For 20x3, total overhead is estimated to be $1608428 and total direct labour hours are estimated to be 158990.

Finn is working on Job 24, which currently has $32642 in direct materials and 480 hours (at a rate of $16 per hour) of direct labour attached to it. Below is the expected costs to complete the job:

Direct materials

$17399

Direct labour hours

538 hours


What is the total expected cost for Job 24?

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Homework Answers

Answer #1

Overhead Rate= Total overhead/ Total Direct labour hours

=$1608428/$158990=$ 10.12/direct labour hr (approx)

Cost incurred till date (A) Cost to be incurred to complete the job (B) Total Expected Cost (A+B)
Direct Material $32642 $17399 $50041
Direct Labour 480×$16=$7680 538×$16=$8608 $16288
Overhead 480×10.12=$4857.6 538×10.12=$5444.56 $10302.16
Total $76631.16

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