CMA Intermediate · Cost Accounting · Job Costing
Job No. 41 of Kaveri Engineers used direct materials of ₹24,000 and direct wages of ₹16,000. Factory overhead is absorbed at 150% of direct wages, and administration overhead at 20% of factory cost. What is the total cost of the job?
The total cost is ₹76,800. Factory overhead of ₹24,000 gives a factory cost of ₹64,000. Adding administration overhead at 20% of factory cost, which is ₹12,800, brings the total job cost to ₹76,800.
- A₹80,000
- B₹67,200
- C₹76,800Correct
- D₹64,000
Explanation
Factory overhead = 150% × 16,000 = 24,000. Factory cost = 24,000 + 16,000 + 24,000 = 64,000. Administration overhead = 20% × 64,000 = 12,800. Total cost = 76,800. The option ₹64,000 stops at factory cost and omits administration overhead.
Did you get it right without looking?
One question tells you little. A timed set on Job Costing shows your real accuracy, how long you take and where you lose marks.
More Job Costing questions
- Sharma Fabricators quoted for Job J-17: direct material ₹48,000, direct labour 300 hours at ₹120 per hour, and factory overhead absorbed at …
- In job costing, the cost of normal spoilage that arises because of the specific requirements of a particular job is generally treated as:
- Job 7 of Sundaram Tools: material Rs 60,000, labour Rs 30,000, overheads Rs 30,000, for 100 units. Inspection finds 10 abnormal spoiled unit…
- In a job costing system, which document is normally prepared first for each job and is used to accumulate the material, labour and overhead …
- Which of the following best describes a feature of job costing as applied in a custom furniture workshop in Jaipur?
- Which statement about job costing is correct?