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Question - Job WR53 at NW Fab, required €200 of direct materials and 10 direct labor hours at €15 per hour. Estimated total overhead for the year was €760,000 and estimated direct labor hours were 20,000. At the end of the year, data were recorded as follow: total overhead for the year was €840,000 and direct labour hours were 18,500.
1. What would be recorded as the normal cost of job WR53?
2. What would be recorded as the actual cost of job WR53?
3. Calculate the variance for job WR53 and interpret it!
4. Calculate the selling price of the job if NW Fab requires 12% of Margin Rate or ROS (% of the selling price)!
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