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Job Costing Information The following is the information included by Brad. Below are information about a special order that Brad prepares each week for a local church group. He says you should try and compute job costs based on your own overheads, which will be different than his own. Each week the Church group orders several 3- tiered celebration cakes, as they virtually always have an accomplishment of a parishioner to celebrate. The following costs are incurred: Direct Materials: - Flour: 10 kg @ $2.00/kg - Sugar: 5 kg @ $1.50/kg - Butter: 3 kg @ $4.00/kg - Cream: 2 liters @ $3.50/liter - Fondant and decorations: $45.00 Direct Labor: - Baking: 6 hours @ $15.00/hour - Decoration: 4 hours @ $20.00/hour Manufacturing Overhead: Your future bakery would use a predetermined overhead rate based on direct labor hours. The predetermined overhead rate is calculated at the beginning of the year. You envision that you will have a total overhead of $70,100 and will incur 6,100 direct labor hours in the year. While completing the analysis you wonder to yourself what qualitative factors might be important in determining which jobs to accept and which to reject. You also wonder what factors might influence your various input costs, as you have read recently that wheat prices (and thus flour prices) are rapidly Increasing.

Compute job costing

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