Job Cost Sheet Job: Benzate Direct Labor Direct Material Applied Overhead Total

Question

Job Cost Sheet Job: Benzate Direct Labor Direct Material Applied Overhead Total Hours Rate Total Qty Cost Per Unit Total Qty Rate Total May 8, 20X7 Rod Burner 9 $25 $ 225 $ 225 Sandy Sharp 1 $12 $ 12 $    12 Steel 10 $   80 $ 800 $ 800 May 9, 20X7 Sandy Sharp 2 $12 $ 24 $    24 Applied Overhead ? ? $ 360 $ 360 12 $ 261 $ 800 $ 360 $1,421 What types of costs do you imagine would be included in factory overhead? If overhead is applied based on direct labor hours, what is the application rate?   Ekpro is considering installation of a robotic machine that will do all welding operations. How might this decision impact the total overhead and the application method?     How does the applied overhead relate to the actual overhead? When they are not the same, what happens to the difference? Why is actual overhead not assigned to each job?     Job Cost Sheet Job: Benzate Direct Labor Direct Material Applied Overhead Total Hours Rate Total Qty Cost Per Unit Total Qty Rate Total May 8, 20X7 Rod Burner 9 $25 $ 225 $ 225 Sandy Sharp 1 $12 $ 12 $    12 Steel 10 $   80 $ 800 $ 800 May 9, 20X7 Sandy Sharp 2 $12 $ 24 $    24 Applied Overhead ? ? $ 360 $ 360 12 $ 261 $ 800 $ 360 $1,421 What types of costs do you imagine would be included in factory overhead? If overhead is applied based on direct labor hours, what is the application rate?   Ekpro is considering installation of a robotic machine that will do all welding operations. How might this decision impact the total overhead and the application method?     How does the applied overhead relate to the actual overhead? When they are not the same, what happens to the difference? Why is actual overhead not assigned to each job?    

Explanation / Answer

Research and Development over head Selling and distribution over head laourt costs which cannot be allocated but can be apportioned to or absorbed by cost units or cost centres is known as indirect labour the impact is you can reduse the labour cost and increase you production and efficency These are those costs which can be controlled by the implementation of appropriate managerial influence and proper policies and technology

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