Homework Answers
Calculation of total costs
Total cost = material cost + direct labour cost + overhead cost
Predetermined overhead rate is 40% of direct labour cost
Therefore overhead cost = $400×40%=$160
Overhead cost is $160
Material cost is $550
Direct labour cost is $400
Total cost to be assigned to job 303 is as follows
Material cost $550
Direct labour cost. $400
Overhead cost. $160
Total cost . $1,110
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