The full cost of a job
Put it all together on a job cost card: direct materials, direct labour and a share of overheads. Then add profit to reach a price.
Task 1Prime cost3 questions
Job costing is used when each order is different. Every job has a job cost card that collects its costs.
Prime cost is the total of the direct costs of the job: direct materials plus direct labour.
| Item | Figure |
|---|---|
| Direct materials | 430.00 |
| Direct labour hours in Cutting | 4 |
| Direct labour hours in Assembly | 10 |
| Direct labour rate for each hour | 15.00 |
Task 2Add the overheads4 questions
Task 3From cost to price3 questions