The computer workstation furniture manufacturing that Santana Rey started in Jan

Question

The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June, Business Solutions’ job cost sheets show the following total costs accumulated on three furniture jobs.

Job 6.02 was started in production in May, and these costs were assigned to it in May: direct materials, $500; direct labor, $210; and overhead, $84. Jobs 6.03 and 6.04 were started in June. Overhead cost is applied with a predetermined rate based on direct labor costs. Jobs 6.02 and 6.03 are finished in June, and Job 6.04 is expected to be finished in July. No raw materials are used indirectly in June. (Assume this company’s predetermined overhead rate did not change over these months).

How much total direct labor cost is incurred in June? (Omit the "$" sign in your response.)

  

The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June, Business Solutions’ job cost sheets show the following total costs accumulated on three furniture jobs.

Explanation / Answer

Amswer for 2)

Direct labour costs incurred in June for each job:

Total labour costs incurred in June:

$690+$1380+$1900=$3970

Particulars Job 6.02($) job 6.03($) job 6.04($) Costs incurred upto end of june 900 1380 1900 (Less)costs incurred upto end of may (210) 0 0 Costs incurred in june 690 1380 1900

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