Berbice Co. applies overheads to jobs at the rate of 40 per cent of direct labour cost. Direct materials of $ 1 250 and direct labour of $1 400 were expended on Jod AB-424 during June. At May 31, the balance of Job AB-424 was $2800. What was the June 30 balance?
a. $3 210
b. $4 760
c. $5 454
d. $6 010

Question

Berbice Co. applies overheads to jobs at the rate of 40 per cent of direct labour cost. Direct materials of $ 1 250 and direct labour of $1 400 were expended on Jod AB-424 during June. At May 31, the balance of Job AB-424 was $2800. What was the June 30 balance?
a. $3 210
b. $4 760
c. $5 454
d. $6 010

goldrush18 · Answer

plz show working

anonymous · Answer

company paid 2800$ last month ,we dont touch this.
they paid this month :
D.materials  :  1250$
D.labour      :  1400$
over head exp.: 1400 * 40 %

all of this months exp. are moved to the AB-424 account .

and the new sum of that account is :
2800 + 1250 + 1400 + 560 = 6010 $

i think the answer is D

sorry for late

goldrush18 · Answer

ok what topic does this come under

anonymous · Answer

we study these in " industrial accounting 1 "book  ,in topic of  phase costting of the project

goldrush18 · Answer

ok i got more questions coming up