1. Job Costing
Sample Questions & Solutions

2. 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

3. 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 = €
8.3% of 3645 = €

4. 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%

5. 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
- 21% = €218.35
Net wage = €821.40
X = €2, 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.

6. 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 €25 per hour
Overheads
38% of labour costs
V.A.T.
+10%
Cost for 1 house
(2%)
= €735
€375
€142.50
0.25 x 3,000 = € % = 15
Subtotal €1,252.50
€125.25
Total for 1 house
€1,377.75
Total for 18 houses
€24,799.50