Bhimani, Horngren,
Datar and Rajan,
Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited The road map to calculate these amounts is (g = given
€3,850 (g
× g) €3,850 (g
× g) g
(€38 × g) €2,800 (€40 × g) Budgeted indirect-cost rate (NC) = €2,800 ÷ 70 = €40
per hour €2,800 (€40 × 70) – same as for indirect job costs for normal costing Direct job costs (AC) = €3,850 (g
× g) Direct job costs (NC) = €3,850 (€55 × g) – same as for direct job costs for actual costing. Indirect job costs (AC) = €38.00 (g
÷ g)
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