Reference no: EM132762700

ABC Bhd uses a job order costing system in its production process. Production overhead is applied based on direct labor hours incurred. The following information concerns a customer order for the job number 1345H:

Direct materials used:

Requisition Number 1333 RM880

Requisition Number 1334 RM906

Requisition Number 1335 RM248

Direct labor:

Machining Department 8 hours at RM9 per hour

Assembly Department 5 hours at RM10 per hour

Inspection Department 7 hours at RM12 per hour

In addition, production overhead cost is applied to the job at the rate of RM11 per direct labor hour. The selling and distribution overhead is RM180. Profit markup is estimated at 25% of the total cost.

Problem 1: Prepare total cost for the job number 1345H.