Example #2

K’s Premier Cabinets completes job #322 on July 7. The job used 45 direct labor hours and 30
machine hours. The job consumed $1,800 worth of materials. The average direct labor rate is
$18.00 per hour and the company uses the predetermined overhead rate calculated in Example
#1. Calculate the total cost of job #322.

There are three components of job cost: direct materials, direct labor and applied overhead.
We are told that direct materials are $1,800.

We must calculate total direct labor cost. Direct labor is a variable cost. Our rate is $18.00 per
direct labor hour. Our driver is 45 hours. If we calculate rate x activity, our total direct labor cost
for job #322 is:
$18.00 per direct labor hour X 45 direct labor hours = $810
Lastly, we just apply overhead to the job. Overhead is applied by taking our predetermined
overhead rate and multiplying it by activity. We are given activity for direct labor hours and for
machine hours. Which one do we use? Remember when I said to label your answer? This is
precisely why it is so important to label your rate! So what was our rate?
$6.25 per direct labor hour
Therefore, we are going to apply the rate based on direct labor hours.
$6.25 per direct labor hour X 45 direct labor hours = $281.25
We now have the components of job cost. Now to add them up and see what the total cost of the
job is.
Direct materials = $1,800
Direct labor = $810
Applied overhead = $281.25
Total job cost = $2,891.25
Enterprise Kreatif memulakan perniagaan pada 1 Disember 2016. Ia hanya mengeluarkan satu
jenis kalkulator poket. Kos standard bagi setiap unit kalkulator adalah seperti berikut:

RM
Buruh langsung 4.00
Bahan langsung 9.00
Overhead pengeluaran berubah-ubah 2.00
Mengatasi overhead pengeluaran 5.00
20.00

Kos lain:
Tetap overhead pentadbiran RM132,000 setahun
Pembolehubah Jualan dan Pengedaran overhed 10% daripada jualan

Overhed pengeluaran tetap diserap berdasarkan output normal bajet sebanyak 34,800 unit
setahun. Jumlah pengeluaran tetap tetap untuk tahun kewangan yang berakhir 30 November
2018 adalah RM174,000 dan ia ditanggung secara merata sepanjang tahun.

Perincian pengeluaran dan penjualan kalkulator untuk tahun berakhir 30 November adalah
seperti berikut:
2017 2018
unit unit
Pengeluaran 27,000 31,000
Jualan 24,000 30,000

Setiap unit kalkulator boleh dijual dengan harga RM27.00

Marginal cost per bike
Variable costs per unit: £
Direct materials (£4,000 ÷ 100) 40
Direct labour (£5,000 ÷ 100) 50
Production overheads (£3,000* ÷ 100) 30
Marginal cost per bike 120
* £5,000 – £2,000 fixed costs
Contribution per bike
Selling price per bike 200
less Variable cost per bike 120
equals Contribution per bike 80
Marginal costing statement
££
Sales £200 x 100 bikes 20,000
less Variable costs:
Direct materials 4,000
Direct labour 5,000
Production overheads 3,000
12,000
equals Total contribution 8,000
less Fixed costs (production overheads) 2,000
equals Profit for the week 6,000