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10 marksJob and Batch Costing

CAPE Accounting Unit 2 · 2015 · Paper 2 · Question 2(a)

Daley Ltd uses job costing to bid on jobs for Caribbean Sun Ltd and West Indies Star Ltd, applying overheads using machine hours based on total expected overhead of $500 000 and 40 000 machine hours.

Calculate the total cost of EACH job assuming overhead is applied at the rate of $12.50 per machine hour.

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Other parts of this question

  1. 2(b)(i)Calculate the activity rate for EACH activity.[7 marks]
  2. 2(b)(ii)State TWO benefits of activity-based costing.[2 marks]
  3. 2(c)Copy the list and identify the units of cost that should be applied for each item on the job cost card for services delivered.[8 marks]
  4. 2(d)Explain the difficulties with costing a hairdo/haircut because of these four features.[8 marks]

More practice: the rest of this paper · more Job and Batch Costing questions · all CAPE Accounting Unit 2 past papers