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perform simple calculations based on the job requirement​

Sagot :

Written as an equation, job costing is calculated like this:

1. Total Job Cost = Direct Materials + Direct Labor + Applied Overhead.

2. Predetermined Overhead Rate = Estimated Overhead / Estimated Activity.

3. Total Job Cost = Direct Materials + Direct Labor + Applied Overhead.

Explanation:

Calculate the direct labor hours

The direct labor hours are the number of direct labor hours needed to produce one unit of a product. The figure is obtained by dividing the total number of finished products by the total number of direct labor hours needed to produce them.