Job Costing Sample Questions & Solutions

Job Costing The total cost of a job came to €3,645 Calculate the cost of each component to the nearest cent if the costs were broken down as follows: Materials 1/3 Labour 5/12 Profit margin 1/6 VAT 1/12

Job Costing Convert fraction to % (divide top by bottom) Component Fraction of Cost Materials Labour Profit margin VAT % 33.3 41.7 16.7 8.3 Cost 33.3% of 3645 = €1,213.77 41.7% of 3645 = €1,519.97 16.7% 0f 3645 = € 608.72 8.3% of 3645 = € 302.54

Job Costing Three carpenters work for 2 weeks constructing a roof. They work 9 hours a day for 4 days and 8 hours on the fifth day each week. From the table below, calculate the net pay for the three carpenters after allowances and deductions. Standard Hourly rate € 22 Standard working week 39 hours Overtime rate 11/2 standard hourly rate Tool allowance (taxable) €1.55 / day Meal allowance (taxable) €1.80 / day Tax 21%

Job Costing Total hours = 4 x 9 + 8 = 44 44 – 39 = 5 hours (overtime) €33 x 5 = €165 (hourly rate x 1.5) €1.55 x 5 (days) = €7.75 €1.8 x 5 (days) = €9 Total Gross = €1,039.75 - Tax @ 21% = €218.35 Net wage = €821.40 X 3 = €2,464.20 Answer Standard Hourly rate € 22 Standard working week 39 hours Overtime rate 11/2 standard hourly rate Tool allowance (taxable) €1.55 / day Meal allowance (taxable) €1.80 / day Tax 21% NB* always take the time to read each question fully to be sure of what answer is required. In this example, the total for the 3 carpenters was requested.

Job Costing It takes 3,000 meters of flooring to complete one house. How much would it cost to floor 18 houses given the following information? Component Cost Flooring €0.25 per metre run. (Less 2% trade discount) Labour 15 hours for each floor @ €25 per hour Overheads 38% of labour costs V.A.T. +10% Cost for 1 house 750 -15 (2%) = €735 €375 €142.50 0.25 x 3,000 = €750 2% = 15 Subtotal €1,252.50 €125.25 Total for 1 house €1,377.75 Total for 18 houses €24,799.50